Gross Margin % is calculated as gross profit divided by its revenue. Outerwall's Gross Profit for the
three
months ended in Jun. 2016 was €148 Mil. Outerwall's Revenue for the
three
months ended in Jun. 2016 was €461 Mil. Therefore, Outerwall's Gross Margin % for the quarter that ended in Jun. 2016 was 32.13%.
The historical rank and industry rank for Outerwall's Gross Margin % or its related term are showing as below:
FRA:CS5'
s Gross Margin % Range Over the Past 10 Years
Min: 30.32 Med: 31.9 Max: 35.1
Current: 30.93
During the past 13 years, the highestGross Margin % of Outerwall was 35.10%. The lowest was 30.32%. And the median was 31.90%.
FRA:CS5's Gross Margin % is not ranked
in the Retail - Cyclical industry.
Industry Median: 36.46
vs FRA:CS5: 30.93
Outerwall had a gross margin of 32.13% for the quarter that ended in Jun. 2016 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Outerwall was 0.90% per year.
Outerwall Gross Margin % Historical Data
The historical data trend for Outerwall'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.
Competitive Comparison of Outerwall's Gross Margin %
For the Specialty Retail subindustry, Outerwall'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.
Outerwall's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Outerwall's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Outerwall'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.
Outerwall (FRA:CS5) 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
Outerwall had a gross margin of 32.13% for the quarter that ended in Jun. 2016 => 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.
Outerwall Gross Margin % Related Terms
Thank you for viewing the detailed overview of Outerwall's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Outerwall Inc was incorporated in Delaware on October 12, 1993. The Company is a provider of automated retail solutions offering convenient products and services that benefit consumers and drive incremental retail traffic and revenue for retailers. The Company's automated retail includes its redbox segment where consumers can rent or purchase movies from self-service kiosks and its Coin segment where consumers can convert their coin to cash or stored value products at coin-counting self-service kiosks. The redbox business faces competition from many other providers, including those using other distribution channels. The coinstar business faces competition from supermarkets, banks and other companies that purchase and operate coin-counting equipment from companies such as ScanCoin, Cummins-Allison Corporation and others. The ecoATM business faces competition from the companies whose primary business consists of the purchase of used electronics, online retailers and web sites such as Gazelle, as well as brick and mortar stores which buy back used electronics. The business of the Company is subject to federal, state, local and foreign laws and government regulation.
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