Gross Margin % is calculated as gross profit divided by its revenue. Conversant's Gross Profit for the
three
months ended in Sep. 2014 was €70.2 Mil. Conversant's Revenue for the
three
months ended in Sep. 2014 was €107.3 Mil. Therefore, Conversant's Gross Margin % for the quarter that ended in Sep. 2014 was 65.37%.
The historical rank and industry rank for Conversant's Gross Margin % or its related term are showing as below:
FRA:VCK'
s Gross Margin % Range Over the Past 10 Years
Min: 50.37 Med: 67.11 Max: 72.44
Current: 66.79
During the past 13 years, the highestGross Margin % of Conversant was 72.44%. The lowest was 50.37%. And the median was 67.11%.
FRA:VCK's Gross Margin % is not ranked
in the Interactive Media industry.
Industry Median: 61.16
vs FRA:VCK: 66.79
Conversant had a gross margin of 65.37% for the quarter that ended in Sep. 2014 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Conversant was -0.90% per year.
Conversant Gross Margin % Historical Data
The historical data trend for Conversant'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 Conversant's Gross Margin %
For the Internet Content & Information subindustry, Conversant'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.
Conversant's Gross Margin % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Conversant's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Conversant'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.
Conversant (FRA:VCK) 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
Conversant had a gross margin of 65.37% for the quarter that ended in Sep. 2014 => 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.
Conversant Gross Margin % Related Terms
Thank you for viewing the detailed overview of Conversant's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Conversant Inc, formerly known as Valueclick Inc. The Company and its subsidiaries offers digital marketing services across its Affiliate Marketing and Media segments. In affiliate marketing, a website or mobile publisher joins an advertiser's affiliate marketing program and agrees to distribute the advertiser's offers in exchange for commissions on sales or leads generated. The publisher places the advertiser's display advertisements or text links on their website or mobile website, in email campaigns, or in search listings, and receives a commission from the advertiser only when a visitor takes an agreed-upon action, such as making a purchase on the advertiser's website. Advertisers upload their offers onto its system, making them available for placement by affiliates. The Companys affiliate marketing services are structured to deliver an exceptional level of experience, expertise and strategic support to advertisers. Dedicated teams are focused on technical support, network quality and account services to work with advertisers as strategic partners in managing their affiliate programs. The Company offers its clients the option to choose the level of service that fits their needs, ranging from full program management to network access. The Companys media solutions enable marketers to deliver personalized communications and are designed for flexibility based on each brands specific needs. Its media solutions also include a suite of ad serving and analytics tools designed to improve marketing effectiveness through precise ad execution and data collection: the Conversant Tag Manager, which streamlines the collection of website data; Conversant Data Collection & Management, which unites marketing data from across digital channels; and the ConversantTM Ad Server, which executes, reports and optimizes ad campaigns across digital channels. The Company markets its products and services primarily through direct marketing, print advertising and online advertising throughout the year.
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