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KVHI (KVH Industries) Gross Margin % : 32.01% (As of Sep. 2024)


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What is KVH Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KVH Industries's Gross Profit for the three months ended in Sep. 2024 was $9.3 Mil. KVH Industries's Revenue for the three months ended in Sep. 2024 was $29.0 Mil. Therefore, KVH Industries's Gross Margin % for the quarter that ended in Sep. 2024 was 32.01%.

Warning Sign:

KVH Industries Inc gross margin has been in long-term decline. The average rate of decline per year is -3.2%.


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

KVHI' s Gross Margin % Range Over the Past 10 Years
Min: 24.44   Med: 37.9   Max: 44.64
Current: 24.44


During the past 13 years, the highest Gross Margin % of KVH Industries was 44.64%. The lowest was 24.44%. And the median was 37.90%.

KVHI's Gross Margin % is ranked worse than
50.58% of 2422 companies
in the Hardware industry
Industry Median: 24.655 vs KVHI: 24.44

KVH Industries had a gross margin of 32.01% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for KVH Industries was -3.20% per year.


KVH Industries Gross Margin % Historical Data

The historical data trend for KVH Industries'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.

* Premium members only.

KVH Industries Gross Margin % Chart

KVH Industries Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.04 36.29 34.22 37.84 28.61

KVH Industries Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 37.49 2.65 33.88 31.06 32.01

Competitive Comparison of KVH Industries's Gross Margin %

For the Communication Equipment subindustry, KVH Industries'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.


KVH Industries's Gross Margin % Distribution in the Hardware Industry

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

* The bar in red indicates where KVH Industries's Gross Margin % falls into.



KVH Industries Gross Margin % Calculation

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

KVH Industries's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=37.9 / 132.379
=(Revenue - Cost of Goods Sold) / Revenue
=(132.379 - 94.511) / 132.379
=28.61 %

KVH Industries's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=9.3 / 28.971
=(Revenue - Cost of Goods Sold) / Revenue
=(28.971 - 19.697) / 28.971
=32.01 %

* 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.


KVH Industries  (NAS:KVHI) 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

KVH Industries had a gross margin of 32.01% for the quarter that ended in Sep. 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.


KVH Industries Gross Margin % Related Terms

Thank you for viewing the detailed overview of KVH Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


KVH Industries Business Description

Traded in Other Exchanges
N/A
Address
50 Enterprise Center, Middletown, RI, USA, 02842
KVH Industries Inc provide integrated, end-to-end services, software, and hardware that support its customers' need for access to the Internet, VoIP, operations content, and entertainment services. The company also provides commercially licensed entertainment, including news, sports, music, and movies, to commercial and leisure customers in the maritime, hotel, and retail markets. The Company operates in a number of geographic areas, including internationally. The Revenues are generated from international locations, mainly consisting of Singapore, Canada, European Union countries and other European countries, countries in Africa, Asia/Pacific and the Middle East, and India.
Executives
Brent C Bruun officer: Interim CEO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Stephen H Deckoff director, 10 percent owner 1 SOUND SHORE DRIVE, SUITE 200, GREENWICH CT 06830
Felise Feingold officer: SVP General Counsel 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Robert J Balog officer: Chief Technology Officer` 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Roger Kuebel officer: CFO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Black Diamond Capital Management, L.l.c. 10 percent owner 2187 ATLANTIC STREET, 9TH FLOOR, STAMFORD CT 06902
Needham Group, Inc. 10 percent owner 445 PARK AVENUE, NEW YORK NY 10022
James S Dodez director 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Cielo Hernandez director C/O XL FLEET CORP., 145 NEWTON STREET, BOSTON MA 02135
Jennifer Louise Baker officer: VP/CAO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
David B. Kagan director 300 HOLIDAY SQUARE BLVD., COVINGTON LA 70433
David Tolley director C/O THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
Daniel R Conway officer: EVP Inertial Navigation C/O KVH INDUSTRIES INC, 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
George A Needham 10 percent owner C/O NEEDHAM & COMPANY, LLC, 445 PARK AVE, NEW YORK NY 10022
Kits Van Heyningen Martin other: Sr. Advisor 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842