Nortel InversoraBUE:NORT6 Gross Margin % is 87.50% as of Sep. 2017, which is 2% above its 10-year median of 85.58. The stock has 9 warning signs investors should review.
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
Nortel Inversora had a gross margin of 87.50% for the quarter that ended in Sep. 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.
Nortel Inversora Gross Margin % Related Terms
Nortel Inversora Gross Margin % Historical Data
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The historical data trend for Nortel Inversora'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.
BUE:NORT6 vs GLIBA, TDCAF: Gross Margin % Comparison
For the Telecom Services subindustry, Nortel Inversora'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.
Nortel Inversora Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Nortel Inversora's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nortel Inversora'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.
Nortel Inversora (BUE:NORT6) has a Gross Margin % of 87.50% as of Sep. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Nortel Inversora and its competitors. This is near median its historical median of 85.58. Over the past decade, Nortel Inversora's Gross Margin % has ranged from 45.20 to 91.81.
Is Nortel Inversora's Gross Margin % too high?
Nortel Inversora's current Gross Margin % of 87.50% is near median its 10-year median of 85.58. Over the past 10 years, this metric has ranged from a low of 45.20 to a high of 91.81. The Telecommunication Services industry median Gross Margin % is 51.52. Nortel Inversora's value of 87.50% is 69.8% above this industry median.
How does Nortel Inversora's Gross Margin % compare to GLIBA and TDCAF?
Nortel Inversora's Gross Margin % of 87.50% can be compared against companies in the Telecommunication Services industry. The industry median Gross Margin % is 51.52. Nortel Inversora's value of 87.50% is 69.8% above this benchmark. Historically, Nortel Inversora's own Gross Margin % has ranged from 45.20 to 91.81 over the past decade. While the company's 10-year median is 85.58 vs. the industry median of 51.52, Nortel Inversora 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 a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.52, based on 341 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. Nortel Inversora's current Gross Margin % of 87.50% is 69.8% 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 Nortel Inversora and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nortel Inversora's current Gross Margin % is 87.50%, which is near median its own 10-year median of 85.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nortel Inversora stock overvalued right now?
Nortel Inversora (BUE:NORT6) has a current Gross Margin % of 87.50%. The current Gross Margin % is 87.50%, which is near median its 10-year median of 85.58 and 69.8% above the Telecommunication Services industry median of 51.52. 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 Nortel Inversora (BUE:NORT6), the current Gross Margin % is 87.50% as of Sep. 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.
Nortel Inversora SA is a holding company. The company provides fixed-line public telecommunications services and basic telephone services. Nortel operates through the following segments: Fixed Services; Personal Mobile Services; and Nucleo Mobile Services. The Fixed Services division provides a local area, national long-distance and international communications, supplementary services, data transmission, internet services, IT solution outsourcing and sales of equipment. Personal Mobile Services and Nucleo Mobile Services division offerings include voice communications, high-speed mobile internet content and applications download, multimedia messaging services, among others; and sale of mobile communication devices.
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