Bonso Electronics International (OTCPK:BNSOF) 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
Bonso Electronics International had a gross margin of 23.64% for the quarter that ended in Sep. 2022 => 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.
Bonso Electronics International Gross Margin % Related Terms
Bonso Electronics International 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.
Bonso Electronics International Gross Margin % Chart
BNSOF vs MIND, SOBR, UCLE: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Bonso Electronics International'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.
Bonso Electronics International Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Bonso Electronics International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bonso Electronics International'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.
Bonso Electronics International (BNSOF) has a Gross Margin % of 23.64% as of Sep. 2022. Gross margin is the ratio of total gross profit to net sales. View historical data on Bonso Electronics International and its competitors.
Is Bonso Electronics International's Gross Margin % too high?
Bonso Electronics International's current Gross Margin % is 23.64%. The Hardware industry median Gross Margin % is 24.53. Bonso Electronics International's value of 23.64% is 3.6% below this industry median. Overall, Bonso Electronics International has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Bonso Electronics International's Gross Margin % compare to MIND and SOBR?
Bonso Electronics International's Gross Margin % of 23.64% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.53. Bonso Electronics International's value of 23.64% is 3.6% below 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 24.53, 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. Bonso Electronics International's current Gross Margin % of 23.64% is 3.6% 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 Bonso Electronics International and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bonso Electronics International's current Gross Margin % is 23.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bonso Electronics International stock overvalued right now?
Bonso Electronics International (BNSOF) has a current Gross Margin % of 23.64%. The current Gross Margin % is 23.64% and 3.6% below the Hardware industry median of 24.53. Bonso Electronics International's overall GF Score™ is 16/100. 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 Bonso Electronics International (BNSOF), the current Gross Margin % is 23.64% as of Sep. 2022. 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.
Bonso Electronics International Business Description
Bonso Electronics International Inc mainly designs, develops, produces, and sells electronic sensor-based and wireless products for private label original equipment manufacturers, original brand manufacturers (OBMs), and original design manufacturers. The company has four operating segments: Scales, Others, Pet Electronics Products, and Rental and Management. It generates maximum revenue from the Scales segment. Geographically, the company derives maximum revenue from United States, followed by Germany, and the PRC. It also independently designs and develops electronic products for private label markets. The company rents factory space and equipment to third parties.
16GF Score
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