The historical rank and industry rank for Gamma Communications's Gross Margin % or its related term are showing as below:
LSE:GAMA'
s Gross Margin % Range Over the Past 10 Years
Min: 42.91 Med: 50.81 Max: 51.83
Current: 51.83
During the past 13 years, the highestGross Margin % of Gamma Communications was 51.83%. The lowest was 42.91%. And the median was 50.81%.
LSE:GAMA's Gross Margin % is ranked better than 51.44% of 348
companies
in the Telecommunication Services industry
Industry Median: 50.83
vs LSE:GAMA: 51.83
Gamma Communications had a gross margin of 52.04% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Gamma Communications was 0.40% per year.
Gamma Communications Gross Margin % Historical Data
The historical data trend for Gamma Communications'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.
Competitive Comparison of Gamma Communications's Gross Margin %
For the Telecom Services subindustry, Gamma Communications'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.
Gamma Communications's Gross Margin % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Gamma Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gamma Communications'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.
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
Gamma Communications had a gross margin of 52.04% for the quarter that ended in Dec. 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.
Gamma Communications Gross Margin % Related Terms
Thank you for viewing the detailed overview of Gamma Communications's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gamma Communications PLC is a supplier of Unified Communications as a Service (UCaaS) in the United Kingdom and other markets, supplying communication solutions directly and via its network of trusted channel partners. The company offers various products across categories including Unified Communications, Voice Enablement, and Connectivity. The company also offers cybersecurity and managed enterprise solutions. Its operating segments are Gamma Business, Gamma Enterprise, Europe, and Central Functions. The majority of the company's revenue is generated from the Gamma Business segment which sells its products to smaller businesses in the UK. Geographically, the company generates a majority of its revenue from the United Kingdom and the rest from Europe.
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