The historical rank and industry rank for American Defense Systems's Gross Margin % or its related term are showing as below:
ADFS's Gross Margin % is not ranked *
in the Aerospace & Defense industry.
Industry Median: 26.65 * Ranked among companies with meaningful Gross Margin % only.
American Defense Systems had a gross margin of 43.29% for the quarter that ended in Sep. 2012 => Durable competitive advantage
American Defense Systems (OTCPK:ADFS) 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
American Defense Systems had a gross margin of 43.29% for the quarter that ended in Sep. 2012 => Durable competitive advantage
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.
American Defense Systems Gross Margin % Related Terms
American Defense Systems Gross Margin % Historical Data
* 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.
ADFS vs ASDN, MKRS, PSSR: Gross Margin % Comparison
For the Aerospace & Defense subindustry, American Defense Systems'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.
American Defense Systems Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, American Defense Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Defense Systems'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.
American Defense Systems (ADFS) has a Gross Margin % of 43.29% as of Sep. 2012. Gross margin is the ratio of total gross profit to net sales. View historical data on American Defense Systems and its competitors.
Is American Defense Systems' Gross Margin % too high?
American Defense Systems' current Gross Margin % is 43.29%. The Aerospace & Defense industry median Gross Margin % is 26.65. American Defense Systems' value of 43.29% is 62.4% above this industry median.
How does American Defense Systems' Gross Margin % compare to ASDN and MKRS?
American Defense Systems' Gross Margin % of 43.29% can be compared against companies in the Aerospace & Defense industry. The industry median Gross Margin % is 26.65. American Defense Systems' value of 43.29% is 62.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Defense Systems's current Gross Margin % of 43.29% is 62.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on American Defense Systems and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Defense Systems's current Gross Margin % is 43.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Defense Systems stock overvalued right now?
American Defense Systems (ADFS) has a current Gross Margin % of 43.29%. The current Gross Margin % is 43.29% and 62.4% above the Aerospace & Defense industry median of 26.65. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For American Defense Systems (ADFS), the current Gross Margin % is 43.29% as of Sep. 2012. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
American Defense Systems Inc is a defense and security products company engaged in three business areas: customized transparent and opaque armor solutions; architectural hardening and perimeter defense and tactical training products and services. It serves US government agencies, general contractors and other commercial and private entities operating in high-threat locations.
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