Gross Margin % is calculated as gross profit divided by its revenue. Deluxe's Gross Profit for the
three
months ended in Dec. 2024 was $272 Mil. Deluxe's Revenue for the
three
months ended in Dec. 2024 was $521 Mil. Therefore, Deluxe's Gross Margin % for the quarter that ended in Dec. 2024 was 52.30%.
Warning Sign:
Deluxe Corp gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Deluxe's Gross Margin % or its related term are showing as below:
DLX'
s Gross Margin % Range Over the Past 10 Years
Min: 53.04 Med: 59.36 Max: 63.94
Current: 53.09
During the past 13 years, the highestGross Margin % of Deluxe was 63.94%. The lowest was 53.04%. And the median was 59.36%.
DLX's Gross Margin % is ranked better than 89.54% of 526
companies
in the Conglomerates industry
Industry Median: 24.84
vs DLX: 53.09
Deluxe had a gross margin of 52.30% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Deluxe was -2.70% per year.
Deluxe Gross Margin % Historical Data
The historical data trend for Deluxe'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 Conglomerates subindustry, Deluxe'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.
Deluxe's Gross Margin % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Deluxe's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Deluxe'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.
Deluxe (NYSE:DLX) 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
Deluxe had a gross margin of 52.30% for the quarter that ended in Dec. 2024 => 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.
Deluxe Gross Margin % Related Terms
Thank you for viewing the detailed overview of Deluxe's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Deluxe Corporation is principally a payments and data company. Its reportable segments are; Merchant Services, B2B Payments, Data Solutions, and Print. Maximum revenue is derived from its Print segment which provides printed personal and business checks, business essentials, as well as branded promotional, print, apparel, and digital storefront solutions. The Merchant Services segment provides electronic credit and debit card authorization, payment systems, and processing services. The B2B segment offers treasury management solutions, integrated accounts payable disbursements, and fraud and security services, and the Data Solutions segment offers data, analytics, and marketing services as well as financial institution profitability reporting and business incorporation services.
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