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
Allied Security Innovations had a gross margin of 63.23% for the quarter that ended in Dec. 2017 => 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.
Allied Security Innovations Gross Margin % Related Terms
Allied Security Innovations 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.
ADSV vs VMII, MGSGF, SOFT: Gross Margin % Comparison
For the Software - Application subindustry, Allied Security Innovations'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.
Allied Security Innovations Gross Margin % vs Software Industry
For the Software industry and Technology sector, Allied Security Innovations's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Allied Security Innovations'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.
Allied Security Innovations (ADSV) has a Gross Margin % of 63.23% as of Dec. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Allied Security Innovations and its competitors.
Is Allied Security Innovations' Gross Margin % too high?
Allied Security Innovations' current Gross Margin % is 63.23%. The Software industry median Gross Margin % is 40.45. Allied Security Innovations' value of 63.23% is 56.3% above this industry median.
How does Allied Security Innovations' Gross Margin % compare to VMII and MGSGF?
Allied Security Innovations' Gross Margin % of 63.23% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. Allied Security Innovations' value of 63.23% is 56.3% 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 a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 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. Allied Security Innovations's current Gross Margin % of 63.23% is 56.3% 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 Allied Security Innovations and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Security Innovations's current Gross Margin % is 63.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Security Innovations stock overvalued right now?
Allied Security Innovations (ADSV) has a current Gross Margin % of 63.23%. The current Gross Margin % is 63.23% and 56.3% above the Software industry median of 40.45. 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 Allied Security Innovations (ADSV), the current Gross Margin % is 63.23% as of Dec. 2017. 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.
Allied Security Innovations Inc is engaged in developing and implementing software systems for law enforcement agencies and correctional facilities. The product of the company is Compu-Capture.
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