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The historical rank and industry rank for Grom Social Enterprises's Gross Margin % or its related term are showing as below:
GROM's Gross Margin % is not ranked *
in the Interactive Media industry.
Industry Median: 62.67 * Ranked among companies with meaningful Gross Margin % only.
Grom Social Enterprises had a gross margin of 29.98% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Grom Social Enterprises was 0.00% per year.
Grom Social Enterprises (OTCPK:GROM) 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
Grom Social Enterprises had a gross margin of 29.98% for the quarter that ended in Mar. 2024 => 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.
Grom Social Enterprises Gross Margin % Related Terms
Grom Social Enterprises Gross Margin % Historical Data
* 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.
GROM vs FMHS, HMLA, GOOGL: Gross Margin % Comparison
For the Internet Content & Information subindustry, Grom Social Enterprises'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.
Grom Social Enterprises Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Grom Social Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Grom Social Enterprises'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.
Grom Social Enterprises (GROM) has a Gross Margin % of 29.98% as of Mar. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Grom Social Enterprises and its competitors.
Is Grom Social Enterprises' Gross Margin % too high?
Grom Social Enterprises' current Gross Margin % is 29.98%. The Interactive Media industry median Gross Margin % is 62.67. Grom Social Enterprises' value of 29.98% is 52.2% below this industry median. Overall, Grom Social Enterprises has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Grom Social Enterprises' Gross Margin % compare to FMHS and HMLA?
Grom Social Enterprises' Gross Margin % of 29.98% can be compared against companies in the Interactive Media industry. The industry median Gross Margin % is 62.67. Grom Social Enterprises' value of 29.98% is 52.2% 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 an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.67, based on 498 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. Grom Social Enterprises's current Gross Margin % of 29.98% is 52.2% 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 Grom Social Enterprises and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grom Social Enterprises's current Gross Margin % is 29.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grom Social Enterprises stock overvalued right now?
Grom Social Enterprises (GROM) has a current Gross Margin % of 29.98%. The current Gross Margin % is 29.98% and 52.2% below the Interactive Media industry median of 62.67. Grom Social Enterprises' overall GF Score™ is 12/100. 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 Grom Social Enterprises (GROM), the current Gross Margin % is 29.98% as of Mar. 2024. 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.
Grom Social Enterprises Inc is a social media, technology, and entertainment company for kids focused on producing original content. In addition to providing a social media platform, the company creates content consisting of animated characters, interactive charts, videos, blogs, and games. It has three reportable business segments: Animation, which includes TDH; Original Content, which includes CIM; and Social & Technology, which includes GSOC and GEDU. The majority of its revenue is from the Animation segment.
12GF Score
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