Gross Margin % is calculated as gross profit divided by its revenue. Iteris's Gross Profit for the
three
months ended in Dec. 2023 was $15.5 Mil. Iteris's Revenue for the
three
months ended in Dec. 2023 was $42.1 Mil. Therefore, Iteris's Gross Margin % for the quarter that ended in Dec. 2023 was 36.91%.
Warning Sign:
Iteris Inc gross margin has been in long-term decline. The average rate of decline per year is -5.5%.
The historical rank and industry rank for Iteris's Gross Margin % or its related term are showing as below:
ITI'
s Gross Margin % Range Over the Past 10 Years
Min: 26.93 Med: 38.69 Max: 40.61
Current: 36.18
During the past 13 years, the highestGross Margin % of Iteris was 40.61%. The lowest was 26.93%. And the median was 38.69%.
ITI's Gross Margin % is ranked better than 72.14% of 2437
companies
in the Hardware industry
Industry Median: 24.45
vs ITI: 36.18
Iteris had a gross margin of 36.91% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Iteris was -5.50% per year.
Iteris Gross Margin % Historical Data
The historical data trend for Iteris's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Communication Equipment subindustry, Iteris's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Iteris's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Iteris's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Iteris's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Iteris (NAS:ITI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Iteris had a gross margin of 36.91% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Iteris Gross Margin % Related Terms
Thank you for viewing the detailed overview of Iteris's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Iteris Inc is a provider of smart mobility infrastructure management solutions. Its solutions include traveler information systems, transportation performance measurement software, traffic analytics software, transportation operations software, transportation-related data sets, advanced sensing devices, managed services, traffic engineering services, and mobility consulting services. The company's cloud-enabled end-to-end solutions help public transportation agencies, municipalities, commercial entities and other transportation infrastructure providers monitor, visualize, and optimize mobility infrastructure to make mobility safe, efficient,and sustainable for everyone. The software solutions include ClearGuide, ClearRoute, Commercial Vehicle Operations, BlueArgus, TrafficCarma,and others.
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