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
Akoustis Technologies had a gross margin of 47.66% for the quarter that ended in Sep. 2024 => 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.
Akoustis Technologies Gross Margin % Related Terms
Akoustis Technologies Gross Margin % Historical Data
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The historical data trend for Akoustis Technologies'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.
AKTSQ vs ELST, MLRT, CSCO: Gross Margin % Comparison
For the Communication Equipment subindustry, Akoustis Technologies'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.
Akoustis Technologies Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Akoustis Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Akoustis Technologies'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.
Akoustis Technologies (AKTSQ) has a Gross Margin % of 47.66% as of Sep. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Akoustis Technologies and its competitors.
Is Akoustis Technologies' Gross Margin % too high?
Akoustis Technologies' current Gross Margin % is 47.66%. The Hardware industry median Gross Margin % is 24.50. Akoustis Technologies' value of 47.66% is 94.5% above this industry median. Overall, Akoustis Technologies has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Akoustis Technologies' Gross Margin % compare to ELST and MLRT?
Akoustis Technologies' Gross Margin % of 47.66% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.50. Akoustis Technologies' value of 47.66% is 94.5% 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,450 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. Akoustis Technologies's current Gross Margin % of 47.66% is 94.5% 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 Akoustis Technologies and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Akoustis Technologies's current Gross Margin % is 47.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Akoustis Technologies stock overvalued right now?
Akoustis Technologies (AKTSQ) has a current Gross Margin % of 47.66%. The current Gross Margin % is 47.66% and 94.5% above the Hardware industry median of 24.50. Akoustis Technologies' overall GF Score™ is 12/100. 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 Akoustis Technologies (AKTSQ), the current Gross Margin % is 47.66% as of Sep. 2024. 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.
Akoustis Technologies Inc is an emerging commercial product company focused on developing, designing, and manufacturing innovative RF filter solutions for the wireless industry, including for products such as smartphones and tablets, network infrastructure equipment, WiFi Customer Premise Equipment and defense applications. The company has developed a proprietary microelectromechanical system based bulk acoustic wave technology and a unique manufacturing process flow, called XBAW, for filters produced for use in RFFE modules. The company derives revenue from the sale of filter products under individual customer purchase orders, some of which have underlying master sales agreements that specify terms governing the product sales.
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