IntelsatFRA:IJS.PFD 4 Gross Margin % is 66.32% as of Sep. 2021, which is 22% below its 10-year median of 84.52. GuruFocus rates FRA:IJS.PFD with a GF Score™ of 4/100. The stock has 10 warning signs investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. Intelsat's Gross Profit for the
three
months ended in Sep. 2021 was €296.58 Mil. Intelsat's Revenue for the
three
months ended in Sep. 2021 was €447.18 Mil. Therefore, Intelsat's Gross Margin % for the quarter that ended in Sep. 2021 was 66.32%.
Warning Sign:
Intelsat SA gross margin has been in long-term decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for Intelsat's Gross Margin % or its related term are showing as below:
FRA:IJS.PFD'
s Gross Margin % Range Over the Past 10 Years
Min: 69.03 Med: 84.52 Max: 86.04
Current: 69.03
During the past 13 years, the highestGross Margin % of Intelsat was 86.04%. The lowest was 69.03%. And the median was 84.52%.
FRA:IJS.PFD's Gross Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 51.415
vs FRA:IJS.PFD: 69.03
Intelsat had a gross margin of 66.32% for the quarter that ended in Sep. 2021 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Intelsat was -2.10% per year.
Intelsat (FRA:IJS.PFD) 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
Intelsat had a gross margin of 66.32% for the quarter that ended in Sep. 2021 => 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.
Intelsat Gross Margin % Related Terms
Intelsat Gross Margin % Historical Data
* Premium members only.
The historical data trend for Intelsat'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 Telecom Services subindustry, Intelsat'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.
Intelsat Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Intelsat's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Intelsat'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.
Intelsat (FRA:IJS.PFD) has a Gross Margin % of 66.32% as of Sep. 2021. Gross margin is the ratio of total gross profit to net sales. View historical data on Intelsat and its competitors. This is 22% below median its historical median of 84.52. Over the past decade, Intelsat's Gross Margin % has ranged from 69.03 to 86.04.
Is Intelsat's Gross Margin % too high?
Intelsat's current Gross Margin % of 66.32% is 22% below median its 10-year median of 84.52. Over the past 10 years, this metric has ranged from a low of 69.03 to a high of 86.04. The Telecommunication Services industry median Gross Margin % is 51.42. Intelsat's value of 66.32% is 29% above this industry median. Overall, Intelsat has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Intelsat's Gross Margin % compare to competitors?
Intelsat's Gross Margin % of 66.32% can be compared against companies in the Telecommunication Services industry. The industry median Gross Margin % is 51.42. Intelsat's value of 66.32% is 29% above this benchmark. Historically, Intelsat's own Gross Margin % has ranged from 69.03 to 86.04 over the past decade. While the company's 10-year median is 84.52 vs. the industry median of 51.42, Intelsat 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 51.42, 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. Intelsat's current Gross Margin % of 66.32% is 29% 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 Intelsat 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. Intelsat's current Gross Margin % is 66.32%, which is 22% below median its own 10-year median of 84.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Intelsat stock overvalued right now?
Intelsat (FRA:IJS.PFD) has a current Gross Margin % of 66.32%. The current Gross Margin % is 66.32%, which is 22% below median its 10-year median of 84.52 and 29% above the Telecommunication Services industry median of 51.42. Intelsat's overall GF Score™ is 4/100 with 10 warning signs to review. 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 Intelsat (FRA:IJS.PFD), the current Gross Margin % is 66.32% as of Sep. 2021. 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.
Intelsat SA is a Luxembourg-based company which operates satellite services business. It is engaged in providing diversified communications services to the media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, and a multinational corporation. In addition, it provides commercial satellite communication services to the United States government and other select military organizations and their contractors. Intelsat operates through a single segment being Providing satellite services. The company earns the majority of its revenue from North America.
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