Helios and Matheson Analytics (OTCPK:HMNY) 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
Helios and Matheson Analytics had a gross margin of -46.76% for the quarter that ended in Sep. 2018 => 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.
Helios and Matheson Analytics Gross Margin % Related Terms
Helios and Matheson Analytics 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.
Helios and Matheson Analytics Gross Margin % Chart
Helios and Matheson Analytics Gross Margin % Competitor Comparison
For the Information Technology Services subindustry, Helios and Matheson Analytics'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.
Helios and Matheson Analytics Gross Margin % vs Software Industry
For the Software industry and Technology sector, Helios and Matheson Analytics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Helios and Matheson Analytics'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.
Helios and Matheson Analytics (HMNY) has a Gross Margin % of -46.76% as of Sep. 2018. Gross margin is the ratio of total gross profit to net sales. View historical data on Helios and Matheson Analytics and its competitors.
Is Helios and Matheson Analytics' Gross Margin % too high?
Helios and Matheson Analytics' current Gross Margin % is -46.76%.
How does Helios and Matheson Analytics' Gross Margin % compare to competitors?
Helios and Matheson Analytics' Gross Margin % of -46.76% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. 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 40.45, based on 2,680 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. 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 Helios and Matheson Analytics and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Helios and Matheson Analytics's current Gross Margin % is -46.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Helios and Matheson Analytics stock overvalued right now?
Helios and Matheson Analytics (HMNY) has a current Gross Margin % of -46.76%. The current Gross Margin % is -46.76%. 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 Helios and Matheson Analytics (HMNY), the current Gross Margin % is -46.76% as of Sep. 2018. 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.
Helios and Matheson Analytics Business Description
Helios and Matheson Analytics Inc is a United States-based company, that engages in the provision of information technology services and solutions. Its services include application value management, application development, integration, independent validation, infrastructure, information management, and analytics services. The company serves various industries including financial, healthcare, retail, education, and government.
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