Pioneer Power Solutions (Pioneer Power Solutions) Gross Margin % : 29.82% (As of Sep. 2023)

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What is Pioneer Power Solutions Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Pioneer Power Solutions's Gross Profit for the three months ended in Sep. 2023 was $3.71 Mil. Pioneer Power Solutions's Revenue for the three months ended in Sep. 2023 was $12.44 Mil. Therefore, Pioneer Power Solutions's Gross Margin % for the quarter that ended in Sep. 2023 was 29.82%.

Warning Sign:

Pioneer Power Solutions Inc gross margin has been in long-term decline. The average rate of decline per year is -1.1%.

The historical rank and industry rank for Pioneer Power Solutions's Gross Margin % or its related term are showing as below:

PPSI' s Gross Margin % Range Over the Past 10 Years
Min: 4.52 Med: 16.29 Max: 26.75
Current: 26.75

During the past 13 years, the highest Gross Margin % of Pioneer Power Solutions was 26.75%. The lowest was 4.52%. And the median was 16.29%.

PPSI's Gross Margin % is ranked better than
51.07% of 2935 companies
in the Industrial Products industry
Industry Median: 26.42 vs PPSI: 26.75

Pioneer Power Solutions had a gross margin of 29.82% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Pioneer Power Solutions was -1.10% per year.

Pioneer Power Solutions Gross Margin % Historical Data

The historical data trend for Pioneer Power Solutions'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.

* Premium members only.

Pioneer Power Solutions Gross Margin % Chart

Pioneer Power Solutions Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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9.41

5.66

4.52

7.61

17.06

Pioneer Power Solutions Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															13.77	28.98	26.01	22.35	29.82

Competitive Comparison of Pioneer Power Solutions's Gross Margin %

For the Electrical Equipment & Parts subindustry, Pioneer Power Solutions'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.

Pioneer Power Solutions's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Pioneer Power Solutions's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Pioneer Power Solutions's Gross Margin % falls into.

Pioneer Power Solutions Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Pioneer Power Solutions's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	4.6	/	27
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(27 - 22.393)	/	27
	=	17.06 %

Pioneer Power Solutions's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	3.7	/	12.443
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12.443 - 8.732)	/	12.443
	=	29.82 %

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.

Pioneer Power Solutions (NAS:PPSI) 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

Pioneer Power Solutions had a gross margin of 29.82% for the quarter that ended in Sep. 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.

Pioneer Power Solutions Gross Margin % Related Terms

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Pioneer Power Solutions (Pioneer Power Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Pioneer Power Solutions Inc (NAS:PPSI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

400 Kelby Street, 12th Floor, One Parker Plaza, Fort Lee, NJ, USA, 07024

Website

https://www.pioneerpowersolutions.com

Pioneer Power Solutions Inc manufactures, sells, and services a broad range of specialty electrical transmission, distribution, and on-site power generation equipment for applications in the utility, industrial, commercial and backup power markets. Its principal products and services include custom-engineered electrical transformers, switchgear and engine-generator sets and controls, complemented by a national field-service network to maintain and repair power generation assets. Pioneer Power works in two reportable segments: Transmission and Distribution Solutions (T&D Solutions) and Critical Power Solutions (Critical Power). Pioneer generates most of its revenue from the United States of America.

Executives

Nathan Mazurek	10 percent owner, officer: President, CEO, Chairman	C/O PIONEER POWER SOLUTIONS, INC., 400 KELBY STREET 9TH FLOOR, FORT LEE NJ 07024
Kytchener Stevenson Whyte	director	400 KELBY STREET, 12TH FLOOR, FORT LEE NJ 07024
Wojciech Michalec	officer: Interim CFO	400 KELBY STREET, 12TH FLOOR, FORT LEE NJ 07024
A. Lawrence Carroll Trust	10 percent owner	415 L'AMBIANCE DRIVE, APT. 804, LONGBOAT KEY FL 34228
David Tesler	director	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024
Jonathan Tulkoff	director	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024
Thomas Klink	director, officer: See Remarks	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024
Andrew Minkow	director, officer: CFO, Secretary and Treasurer	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024
Ian Ross	director	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024
Yossi Cohn	director	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024
David J. Landes	director, 10 percent owner	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024
Provident Pioneer Partners, L.p.	10 percent owner	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024
Provident Canada Corp.	10 percent owner	400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024