InvuLSE:INVU Gross Margin % is 85.78% as of Jul. 2013, which is 5% above its 10-year median of 81.90. The stock has 6 warning signs investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. Invu's Gross Profit for the
six
months ended in Jul. 2013 was £1.17 Mil. Invu's Revenue for the
six
months ended in Jul. 2013 was £1.36 Mil. Therefore, Invu's Gross Margin % for the quarter that ended in Jul. 2013 was 85.78%.
Warning Sign:
Invu PLC gross margin has been in long term decline. The average rate of decline per year is %.
The historical rank and industry rank for Invu's Gross Margin % or its related term are showing as below:
LSE:INVU'
s Gross Margin % Range Over the Past 10 Years
Min: 52 Med: 81.9 Max: 96.6
Current: 84.7
During the past 7 years, the highestGross Margin % of Invu was 96.60%. The lowest was 52.00%. And the median was 81.90%.
LSE:INVU's Gross Margin % is not ranked
in the Software industry.
Industry Median: 40.49
vs LSE:INVU: 84.70
Invu had a gross margin of 85.78% for the quarter that ended in Jul. 2013 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Invu was 0.00% per year.
Invu (LSE:INVU) 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
Invu had a gross margin of 85.78% for the quarter that ended in Jul. 2013 => 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.
Invu Gross Margin % Related Terms
Invu Gross Margin % Historical Data
* Premium members only.
The historical data trend for Invu'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.
For the Software - Application subindustry, Invu'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.
Invu Gross Margin % vs Software Industry
For the Software industry and Technology sector, Invu's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Invu'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.
Invu (LSE:INVU) has a Gross Margin % of 85.78% as of Jul. 2013. Gross margin is the ratio of total gross profit to net sales. View historical data on Invu and its competitors. This is near median its historical median of 81.90. Over the past decade, Invu's Gross Margin % has ranged from 52.00 to 96.60.
Is Invu's Gross Margin % too high?
Invu's current Gross Margin % of 85.78% is near median its 10-year median of 81.90. Over the past 10 years, this metric has ranged from a low of 52.00 to a high of 96.60. The Software industry median Gross Margin % is 40.49. Invu's value of 85.78% is 111.9% above this industry median.
How does Invu's Gross Margin % compare to competitors?
Invu's Gross Margin % of 85.78% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.49. Invu's value of 85.78% is 111.9% above this benchmark. Historically, Invu's own Gross Margin % has ranged from 52.00 to 96.60 over the past decade. While the company's 10-year median is 81.90 vs. the industry median of 40.49, Invu 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 40.49, based on 2,677 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. Invu's current Gross Margin % of 85.78% is 111.9% 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 Invu and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Invu's current Gross Margin % is 85.78%, which is near median its own 10-year median of 81.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Invu stock overvalued right now?
Invu (LSE:INVU) has a current Gross Margin % of 85.78%. The current Gross Margin % is 85.78%, which is near median its 10-year median of 81.90 and 111.9% above the Software industry median of 40.49. 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 Invu (LSE:INVU), the current Gross Margin % is 85.78% as of Jul. 2013. 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.
Invu PLC is a holding company. The company, through its subsidiaries, engages in the design and sale of computer software for the electronic management of information and documents in the United Kingdom. It offers, a document management solution with a series of preconfigured templates containing inbuilt scanning, integration with MS Office, email capture, document routing, and a secure repository.
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