The historical rank and industry rank for Digicel Group's Gross Margin % or its related term are showing as below:
DCEL's Gross Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 51.415 * Ranked among companies with meaningful Gross Margin % only.
Digicel Group had a gross margin of 73.02% for the quarter that ended in Mar. 2015 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digicel Group was 0.00% per year.
Digicel Group (NYSE:DCEL) 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
Digicel Group had a gross margin of 73.02% for the quarter that ended in Mar. 2015 => 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.
Digicel Group Gross Margin % Related Terms
Digicel Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Digicel Group'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.
Digicel Group Gross Margin % Chart
Digicel Group Annual Data
Trend
Mar13
Mar14
Mar15
Gross Margin %
72.47
72.99
73.02
Digicel Group Semi-Annual Data
Mar13
Mar14
Mar15
Gross Margin %
72.47
72.99
73.02
DCEL vs DIRV, FULO, TOWTF: Gross Margin % Comparison
For the Telecom Services subindustry, Digicel Group'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.
Digicel Group Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Digicel Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digicel Group'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.
Digicel Group (DCEL) has a Gross Margin % of 73.02% as of Mar. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on Digicel Group and its competitors.
Is Digicel Group's Gross Margin % too high?
Digicel Group's current Gross Margin % is 73.02%. The Telecommunication Services industry median Gross Margin % is 51.42. Digicel Group's value of 73.02% is 42% above this industry median.
How does Digicel Group's Gross Margin % compare to DIRV and FULO?
Digicel Group's Gross Margin % of 73.02% can be compared against companies in the Telecommunication Services industry. The industry median Gross Margin % is 51.42. Digicel Group's value of 73.02% is 42% above 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. Digicel Group's current Gross Margin % of 73.02% is 42% 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 Digicel Group 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. Digicel Group's current Gross Margin % is 73.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digicel Group stock overvalued right now?
Digicel Group (DCEL) has a current Gross Margin % of 73.02%. The current Gross Margin % is 73.02% and 42% above 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 Digicel Group (DCEL), the current Gross Margin % is 73.02% as of Mar. 2015. 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.
Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.
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