DDD GroupLSE:DDD -7.69% Gross Margin % is 97.21% as of Dec. 2015, which is 2% above its 10-year median of 95.74. The stock has 5 warning signs investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. DDD Group's Gross Profit for the
six
months ended in Dec. 2015 was £0.17 Mil. DDD Group's Revenue for the
six
months ended in Dec. 2015 was £0.18 Mil. Therefore, DDD Group's Gross Margin % for the quarter that ended in Dec. 2015 was 97.21%.
The historical rank and industry rank for DDD Group's Gross Margin % or its related term are showing as below:
LSE:DDD'
s Gross Margin % Range Over the Past 10 Years
Min: 64.82 Med: 95.74 Max: 100
Current: 98.73
During the past 13 years, the highestGross Margin % of DDD Group was 100.00%. The lowest was 64.82%. And the median was 95.74%.
LSE:DDD's Gross Margin % is not ranked
in the Software industry.
Industry Median: 40.445
vs LSE:DDD: 98.73
DDD Group had a gross margin of 97.21% for the quarter that ended in Dec. 2015 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for DDD Group was 1.50% per year.
DDD Group (LSE:DDD) 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
DDD Group had a gross margin of 97.21% for the quarter that ended in Dec. 2015 => 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.
DDD Group Gross Margin % Related Terms
DDD Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for DDD Group'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.
LSE:DDD vs RETC, AGGG, LAAB: Gross Margin % Comparison
For the Software - Application subindustry, DDD Group'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.
DDD Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, DDD Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DDD Group'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.
DDD Group (LSE:DDD) has a Gross Margin % of 97.21% as of Dec. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on DDD Group and its competitors. This is near median its historical median of 95.74. Over the past decade, DDD Group's Gross Margin % has ranged from 64.82 to 100.00.
Is DDD Group's Gross Margin % too high?
DDD Group's current Gross Margin % of 97.21% is near median its 10-year median of 95.74. Over the past 10 years, this metric has ranged from a low of 64.82 to a high of 100.00. The Software industry median Gross Margin % is 40.45. DDD Group's value of 97.21% is 140.4% above this industry median.
How does DDD Group's Gross Margin % compare to RETC and AGGG?
DDD Group's Gross Margin % of 97.21% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.45. DDD Group's value of 97.21% is 140.4% above this benchmark. Historically, DDD Group's own Gross Margin % has ranged from 64.82 to 100.00 over the past decade. While the company's 10-year median is 95.74 vs. the industry median of 40.45, DDD Group has consistently been above the industry average. 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. DDD Group's current Gross Margin % of 97.21% is 140.4% 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 DDD Group 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. DDD Group's current Gross Margin % is 97.21%, which is near median its own 10-year median of 95.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DDD Group stock overvalued right now?
DDD Group (LSE:DDD) has a current Gross Margin % of 97.21%. The current Gross Margin % is 97.21%, which is near median its 10-year median of 95.74 and 140.4% above the Software industry median of 40.45. 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 DDD Group (LSE:DDD), the current Gross Margin % is 97.21% as of Dec. 2015. 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.
DDD Group PLC is a developer and licensor of intellectual property in the advanced imaging market for consumer entertainment products. The company offers intelligent video software solutions for the video chat, conferencing, game casting, webcasting and social photography markets. It also delivers Stereoscopic 3D displays which convert photos, videos and games from 2D to 3D available for televisions, laptops, PC monitors, tablets and mobile phones. The company's intelligent video solutions include real-time identification of the user from their webcam image that allows the user's immediate background to be removed and replaced with alternate images.
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