The historical rank and industry rank for SolarWorld AG's Gross Margin % or its related term are showing as below:
HAM:SWVK's Gross Margin % is not ranked *
in the Semiconductors industry.
Industry Median: 29.61 * Ranked among companies with meaningful Gross Margin % only.
SolarWorld AG had a gross margin of 16.41% for the quarter that ended in Dec. 2016 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SolarWorld AG was 0.00% per year.
SolarWorld AG (HAM:SWVK) 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
SolarWorld AG had a gross margin of 16.41% for the quarter that ended in Dec. 2016 => 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.
SolarWorld AG Gross Margin % Related Terms
SolarWorld AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for SolarWorld AG'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 Solar subindustry, SolarWorld AG'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.
SolarWorld AG Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SolarWorld AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SolarWorld AG'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.
SolarWorld AG (HAM:SWVK) has a Gross Margin % of 16.41% as of Dec. 2016. Gross margin is the ratio of total gross profit to net sales. View historical data on SolarWorld AG and its competitors.
Is SolarWorld AG's Gross Margin % too high?
SolarWorld AG's current Gross Margin % is 16.41%. The Semiconductors industry median Gross Margin % is 29.61. SolarWorld AG's value of 16.41% is 44.6% below this industry median.
How does SolarWorld AG's Gross Margin % compare to SUNW and RGSE?
SolarWorld AG's Gross Margin % of 16.41% can be compared against companies in the Semiconductors industry. The industry median Gross Margin % is 29.61. SolarWorld AG's value of 16.41% is 44.6% 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 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. SolarWorld AG's current Gross Margin % of 16.41% is 44.6% 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 SolarWorld AG and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SolarWorld AG's current Gross Margin % is 16.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SolarWorld AG stock overvalued right now?
SolarWorld AG (HAM:SWVK) has a current Gross Margin % of 16.41%. The current Gross Margin % is 16.41% and 44.6% below the Semiconductors industry median of 29.61. 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 SolarWorld AG (HAM:SWVK), the current Gross Margin % is 16.41% as of Dec. 2016. 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.
SolarWorld AG is a manufacturer of solar power products. It also researches, develops, produces and recycles on all levels of the solar value-added chain. It also focuses on the production and international distribution of high-end solar energy facilities. The business operates through segments that include Production Germany, Production United States, Trade, and Others. The Trade segment generates maximum revenue for the company. Its product line consists of module and assembly kit, cells and wafers, power generation, and other revenue. The sales of module and assembly kit generate maximum revenue for the company.
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