HAUP (Hauppauge Digital) Gross Margin %: 38.41% (As of Mar. 2014)


What is Hauppauge Digital Gross Margin %?

Hauppauge Digital HAUP Gross Margin % is 38.41% as of Mar. 2014.

Gross Margin % is calculated as gross profit divided by its revenue. Hauppauge Digital's Gross Profit for the three months ended in Mar. 2014 was $2.25 Mil. Hauppauge Digital's Revenue for the three months ended in Mar. 2014 was $5.85 Mil. Therefore, Hauppauge Digital's Gross Margin % for the quarter that ended in Mar. 2014 was 38.41%.


The historical rank and industry rank for Hauppauge Digital's Gross Margin % or its related term are showing as below:


HAUP's Gross Margin % is not ranked *
in the Hardware industry.
Industry Median: 24.53
* Ranked among companies with meaningful Gross Margin % only.

Hauppauge Digital had a gross margin of 38.41% for the quarter that ended in Mar. 2014 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hauppauge Digital was 0.00% per year.

Hauppauge Digital  (OTCPK:HAUP) 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

Hauppauge Digital had a gross margin of 38.41% for the quarter that ended in Mar. 2014 => 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.

Hauppauge Digital Gross Margin % Related Terms

Hauppauge Digital Gross Margin % Historical Data

* Premium members only.

The historical data trend for Hauppauge Digital'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.

Hauppauge Digital Gross Margin % Chart

Hauppauge Digital Annual Data
Trend Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.55 32.38 30.89 30.23 36.31

Hauppauge Digital Quarterly Data
Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.96 26.61 31.83 38.82 38.41

HAUP vs VIDE, ITOX: Gross Margin % Comparison

For the Computer Hardware subindustry, Hauppauge Digital'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.

Hauppauge Digital Gross Margin % vs Hardware Industry

For the Hardware industry and Technology sector, Hauppauge Digital's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hauppauge Digital's Gross Margin % falls into.


Hauppauge Digital Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hauppauge Digital's Gross Margin for the fiscal year that ended in Sep. 2013 is calculated as

Gross Margin % (A: Sep. 2013 )=Gross Profit (A: Sep. 2013 ) / Revenue (A: Sep. 2013 )
=12.4 / 34.017
=(Revenue - Cost of Goods Sold) / Revenue
=(34.017 - 21.664) / 34.017
=36.31 %

Hauppauge Digital's Gross Margin for the quarter that ended in Mar. 2014 is calculated as


Gross Margin % (Q: Mar. 2014 )=Gross Profit (Q: Mar. 2014 ) / Revenue (Q: Mar. 2014 )
=2.2 / 5.848
=(Revenue - Cost of Goods Sold) / Revenue
=(5.848 - 3.602) / 5.848
=38.41 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 38.41% mean?
Hauppauge Digital (HAUP) has a Gross Margin % of 38.41% as of Mar. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on Hauppauge Digital and its competitors.
Is Hauppauge Digital's Gross Margin % too high?
Hauppauge Digital's current Gross Margin % is 38.41%. The Hardware industry median Gross Margin % is 24.53. Hauppauge Digital's value of 38.41% is 56.6% above this industry median.
How does Hauppauge Digital's Gross Margin % compare to VIDE and ITOX?
Hauppauge Digital's Gross Margin % of 38.41% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.53. Hauppauge Digital's value of 38.41% is 56.6% 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 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. Hauppauge Digital's current Gross Margin % of 38.41% is 56.6% 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 Hauppauge Digital and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hauppauge Digital's current Gross Margin % is 38.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hauppauge Digital stock overvalued right now?
Hauppauge Digital (HAUP) has a current Gross Margin % of 38.41%. The current Gross Margin % is 38.41% and 56.6% above the Hardware industry median of 24.53. 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 Hauppauge Digital (HAUP), the current Gross Margin % is 38.41% as of Mar. 2014. 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.

Hauppauge Digital Business Description

Address 135 Oser Avenue, Hauppauge, NY, USA, 11788
Hauppauge Digital Inc is a developer of analog and digital TV tuners and other products for the personal computer market. Its product portfolio covers USB TV tuners, HD video recorders, Internal TV tuners, Digital CableCARD tuners, Analog video capture products, European Digital TV Receivers, and Digital media adapters, among others.