Entertainment RewardsASX:EAT Gross Margin % is 167.50% as of Jun. 2025, which is 244% above its 10-year median of 48.71. The stock has 7 warning signs investors should review.
ASX:EAT's Gross Margin % is not ranked
in the Interactive Media industry.
Industry Median: 62.58
vs ASX:EAT: 100.00
Entertainment Rewards had a gross margin of 167.50% for the quarter that ended in Jun. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Entertainment Rewards was 0.00% per year.
Entertainment Rewards (ASX:EAT) 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
Entertainment Rewards had a gross margin of 167.50% for the quarter that ended in Jun. 2025 => 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.
Entertainment Rewards Gross Margin % Related Terms
Entertainment Rewards Gross Margin % Historical Data
* Premium members only.
The historical data trend for Entertainment Rewards'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.
ASX:EAT vs GOOGL, META, SPOT: Gross Margin % Comparison
For the Internet Content & Information subindustry, Entertainment Rewards'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.
Entertainment Rewards Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Entertainment Rewards's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Entertainment Rewards'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.
Entertainment Rewards (ASX:EAT) has a Gross Margin % of 167.50% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Entertainment Rewards and its competitors. This is 244% above median its historical median of 48.71. Over the past decade, Entertainment Rewards' Gross Margin % has ranged from 43.05 to 100.00.
Is Entertainment Rewards' Gross Margin % too high?
Entertainment Rewards' current Gross Margin % of 167.50% is 244% above median its 10-year median of 48.71. Over the past 10 years, this metric has ranged from a low of 43.05 to a high of 100.00. The Interactive Media industry median Gross Margin % is 62.58. Entertainment Rewards' value of 167.50% is 167.7% above this industry median.
How does Entertainment Rewards' Gross Margin % compare to GOOGL and META?
Entertainment Rewards' Gross Margin % of 167.50% can be compared against companies in the Interactive Media industry. The industry median Gross Margin % is 62.58. Entertainment Rewards' value of 167.50% is 167.7% above this benchmark. Historically, Entertainment Rewards' own Gross Margin % has ranged from 43.05 to 100.00 over the past decade. While the company's 10-year median is 48.71 vs. the industry median of 62.58, Entertainment Rewards has consistently been above the industry average. 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 Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 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. Entertainment Rewards's current Gross Margin % of 167.50% is 167.7% 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 Entertainment Rewards and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Entertainment Rewards's current Gross Margin % is 167.50%, which is 244% above median its own 10-year median of 48.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Entertainment Rewards stock overvalued right now?
Entertainment Rewards (ASX:EAT) has a current Gross Margin % of 167.50%. The stock's GF Value™ is A$0.01, compared to a current price of A$0.02 — trading 110% above its estimated fair value. The current Gross Margin % is 167.50%, which is 244% above median its 10-year median of 48.71 and 167.7% above the Interactive Media industry median of 62.58. 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 Entertainment Rewards (ASX:EAT), the current Gross Margin % is 167.50% as of Jun. 2025. 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.
Entertainment Rewards Ltd is Australia and New Zealand's entertainment, lifestyle, and rewards platform, offering members special offers, discounts, promotions, and booking facilities through paid subscriptions. The company serves individuals and corporate clients, managing programs, selling gift cards, and distributing advertisements. Its two main segments are the Entertainment business, with a digital membership program sold largely through not-for-profits, and the Seamless Rewards business, which provides card-linked merchant offers via partners, with the majority of revenue generated from the Entertainment business.
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