The historical rank and industry rank for Covista Communications's Gross Margin % or its related term are showing as below:
CVST's Gross Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 51.415 * Ranked among companies with meaningful Gross Margin % only.
Covista Communications had a gross margin of 46.41% for the quarter that ended in Apr. 2005 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Covista Communications was 0.00% per year.
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
Covista Communications had a gross margin of 46.41% for the quarter that ended in Apr. 2005 => 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.
Covista Communications Gross Margin % Related Terms
Covista Communications Gross Margin % Historical Data
* Premium members only.
The historical data trend for Covista Communications'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.
CVST vs FULO, TWER, DTGI: Gross Margin % Comparison
For the Telecom Services subindustry, Covista Communications'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.
Covista Communications Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Covista Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Covista Communications'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.
Covista Communications (CVST) has a Gross Margin % of 46.41% as of Apr. 2005. Gross margin is the ratio of total gross profit to net sales. View historical data on Covista Communications and its competitors.
Is Covista Communications' Gross Margin % too high?
Covista Communications' current Gross Margin % is 46.41%. The Telecommunication Services industry median Gross Margin % is 51.42. Covista Communications' value of 46.41% is 9.7% below this industry median.
How does Covista Communications' Gross Margin % compare to FULO and TWER?
Covista Communications' Gross Margin % of 46.41% can be compared against companies in the Telecommunication Services industry. The industry median Gross Margin % is 51.42. Covista Communications' value of 46.41% is 9.7% 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 344 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. Covista Communications's current Gross Margin % of 46.41% is 9.7% 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 Covista Communications and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covista Communications's current Gross Margin % is 46.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covista Communications stock overvalued right now?
Covista Communications (CVST) has a current Gross Margin % of 46.41%. The current Gross Margin % is 46.41% and 9.7% below the Telecommunication Services industry median of 51.42. 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 Covista Communications (CVST), the current Gross Margin % is 46.41% as of Apr. 2005. 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.
Covista Communications Inc is a telecommunication service provider. Its products and services include voice, data, and internet solutions, including local, long-distance, and toll-free services, calling card, frame relay, Internet access, & directory assistance.
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