The historical rank and industry rank for Forum Mobile's Gross Margin % or its related term are showing as below:
FRMB's Gross Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 51.415 * Ranked among companies with meaningful Gross Margin % only.
Forum Mobile had a gross margin of 5.82% for the quarter that ended in Jun. 2006 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Forum Mobile was 0.00% per year.
Forum Mobile (OTCPK:FRMB) 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
Forum Mobile had a gross margin of 5.82% for the quarter that ended in Jun. 2006 => No sustainable 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.
Forum Mobile Gross Margin % Related Terms
Forum Mobile Gross Margin % Historical Data
* Premium members only.
The historical data trend for Forum Mobile'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.
FRMB vs DIRV, FULO, TOWTF: Gross Margin % Comparison
For the Telecom Services subindustry, Forum Mobile'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.
Forum Mobile Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Forum Mobile's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Forum Mobile'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.
Forum Mobile (FRMB) has a Gross Margin % of 5.82% as of Jun. 2006. Gross margin is the ratio of total gross profit to net sales. View historical data on Forum Mobile and its competitors.
Is Forum Mobile's Gross Margin % too high?
Forum Mobile's current Gross Margin % is 5.82%. The Telecommunication Services industry median Gross Margin % is 51.42. Forum Mobile's value of 5.82% is 88.7% below this industry median.
How does Forum Mobile's Gross Margin % compare to DIRV and FULO?
Forum Mobile's Gross Margin % of 5.82% can be compared against companies in the Telecommunication Services industry. The industry median Gross Margin % is 51.42. Forum Mobile's value of 5.82% is 88.7% below 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. Forum Mobile's current Gross Margin % of 5.82% is 88.7% below 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 Forum Mobile 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. Forum Mobile's current Gross Margin % is 5.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forum Mobile stock overvalued right now?
Forum Mobile (FRMB) has a current Gross Margin % of 5.82%. The current Gross Margin % is 5.82% and 88.7% below 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 Forum Mobile (FRMB), the current Gross Margin % is 5.82% as of Jun. 2006. 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.
Forum Mobile Inc is a global Mobile Virtual Network Enabler (MVNE) based in the USA. It specializes in MVNE, Mobile Services, Telecom, and cloud services. The company is active in a variety of complementary fields such as private banking, business development, and consulting, and provides hosting and trading platforms. Geographically the business activities are operated through the United States.
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