The historical rank and industry rank for Vectron Systems AG's Gross Margin % or its related term are showing as below:
HAM:V3S's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 40.49 * Ranked among companies with meaningful Gross Margin % only.
Vectron Systems AG had a gross margin of 76.76% for the quarter that ended in Jun. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Vectron Systems AG was 0.00% per year.
Vectron Systems AG (HAM:V3S) 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
Vectron Systems AG had a gross margin of 76.76% for the quarter that ended in Jun. 2024 => 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.
Vectron Systems AG Gross Margin % Related Terms
Vectron Systems AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Vectron Systems 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.
HAM:V3S vs CRM, UBER, NOW: Gross Margin % Comparison
For the Software - Application subindustry, Vectron Systems 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.
Vectron Systems AG Gross Margin % vs Software Industry
For the Software industry and Technology sector, Vectron Systems AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vectron Systems 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.
Vectron Systems AG (HAM:V3S) has a Gross Margin % of 76.76% as of Jun. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Vectron Systems AG and its competitors.
Is Vectron Systems AG's Gross Margin % too high?
Vectron Systems AG's current Gross Margin % is 76.76%. The Software industry median Gross Margin % is 40.49. Vectron Systems AG's value of 76.76% is 89.6% above this industry median. Overall, Vectron Systems AG has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Vectron Systems AG's Gross Margin % compare to CRM and UBER?
Vectron Systems AG's Gross Margin % of 76.76% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.49. Vectron Systems AG's value of 76.76% is 89.6% above 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 Software company?
The median Gross Margin % among Software companies is 40.49, based on 2,677 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. Vectron Systems AG's current Gross Margin % of 76.76% is 89.6% 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 Vectron Systems AG and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vectron Systems AG's current Gross Margin % is 76.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vectron Systems AG stock overvalued right now?
Vectron Systems AG (HAM:V3S) has a current Gross Margin % of 76.76%. The current Gross Margin % is 76.76% and 89.6% above the Software industry median of 40.49. Vectron Systems AG's overall GF Score™ is 10/100. 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 Vectron Systems AG (HAM:V3S), the current Gross Margin % is 76.76% as of Jun. 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.
Vectron Systems AG engages in the production and sale of point of sale (POS) systems and communication software for the networking of branch shops in Germany. It offers stationary and mobile POS systems; POS software; Commander communications software for the interconnection of POS systems; peripherals, such as customer displays and transponders; ECR app, a mobile app for hospitality professionals; trade solutions for hospitality, gastronomy, bakeries, hotels, and cafes; and bonVito, an online marketing instrument with various functions in the areas of customer retention.
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