LifeASX:LFC Gross Margin % is 27.51% as of Jun. 2017, which is 45% below its 10-year median of 49.65. The stock has 5 warning signs investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. Life's Gross Profit for the
six
months ended in Jun. 2017 was A$0.49 Mil. Life's Revenue for the
six
months ended in Jun. 2017 was A$1.77 Mil. Therefore, Life's Gross Margin % for the quarter that ended in Jun. 2017 was 27.51%.
Warning Sign:
Life Corp Ltd gross margin has been in long term decline. The average rate of decline per year is -16.1%.
The historical rank and industry rank for Life's Gross Margin % or its related term are showing as below:
ASX:LFC'
s Gross Margin % Range Over the Past 10 Years
Min: 18.96 Med: 49.65 Max: 72.27
Current: 27.26
During the past 13 years, the highestGross Margin % of Life was 72.27%. The lowest was 18.96%. And the median was 49.65%.
ASX:LFC's Gross Margin % is not ranked
in the Personal Services industry.
Industry Median: 41.795
vs ASX:LFC: 27.26
Life had a gross margin of 27.51% for the quarter that ended in Jun. 2017 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Life was -16.10% per year.
Life (ASX:LFC) 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
Life had a gross margin of 27.51% for the quarter that ended in Jun. 2017 => 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.
Life Gross Margin % Related Terms
Life Gross Margin % Historical Data
* Premium members only.
The historical data trend for Life'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.
For the Personal Services subindustry, Life'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.
Life Gross Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Life's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Life'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.
Life (ASX:LFC) has a Gross Margin % of 27.51% as of Jun. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Life and its competitors. This is 45% below median its historical median of 49.65. Over the past decade, Life's Gross Margin % has ranged from 18.96 to 72.27.
Is Life's Gross Margin % too high?
Life's current Gross Margin % of 27.51% is 45% below median its 10-year median of 49.65. Over the past 10 years, this metric has ranged from a low of 18.96 to a high of 72.27. The Personal Services industry median Gross Margin % is 41.80. Life's value of 27.51% is 34.2% below this industry median.
How does Life's Gross Margin % compare to competitors?
Life's Gross Margin % of 27.51% can be compared against companies in the Personal Services industry. The industry median Gross Margin % is 41.80. Life's value of 27.51% is 34.2% below this benchmark. Historically, Life's own Gross Margin % has ranged from 18.96 to 72.27 over the past decade. While the company's 10-year median is 49.65 vs. the industry median of 41.80, Life has consistently been below 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 a Personal Services company?
The median Gross Margin % among Personal Services companies is 41.80, based on 94 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. Life's current Gross Margin % of 27.51% is 34.2% below 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 Life and its competitors. For the Personal Services industry, the median Gross Margin % is 41.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life's current Gross Margin % is 27.51%, which is 45% below median its own 10-year median of 49.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life stock overvalued right now?
Life (ASX:LFC) has a current Gross Margin % of 27.51%. The current Gross Margin % is 27.51%, which is 45% below median its 10-year median of 49.65 and 34.2% below the Personal Services industry median of 41.80. 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 Life (ASX:LFC), the current Gross Margin % is 27.51% as of Jun. 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.
Life Corp Ltd is a holding company. The company through its subsidiaries is engaged in providing multi-religion funeral services relating to burials or cremations and including other related ancillary services and supplies. The company provides one-stop funeral, bereavement and afterlife care services in Singapore.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:LFC has been successfully added to your 