Medilink-Global UK Ltd gross margin has been in long term decline. The average rate of decline per year is -14.2%.
The historical rank and industry rank for Medilink-Global UK's Gross Margin % or its related term are showing as below:
LSE:MEDI'
s Gross Margin % Range Over the Past 10 Years
Min: 6.76 Med: 32 Max: 38.87
Current: 28.08
During the past 8 years, the highestGross Margin % of Medilink-Global UK was 38.87%. The lowest was 6.76%. And the median was 32.00%.
LSE:MEDI's Gross Margin % is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 40.01
vs LSE:MEDI: 28.08
Medilink-Global UK had a gross margin of 34.11% for the quarter that ended in Jun. 2016 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Medilink-Global UK was -14.20% per year.
Medilink-Global UK (LSE:MEDI) 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
Medilink-Global UK had a gross margin of 34.11% for the quarter that ended in Jun. 2016 => 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.
Medilink-Global UK Gross Margin % Related Terms
Medilink-Global UK Gross Margin % Historical Data
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The historical data trend for Medilink-Global UK'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.
Medilink-Global UK Gross Margin % Competitor Comparison
For the Health Information Services subindustry, Medilink-Global UK'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.
Medilink-Global UK Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Medilink-Global UK's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Medilink-Global UK'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.
Medilink-Global UK (LSE:MEDI) has a Gross Margin % of 34.11% as of Jun. 2016. Gross margin is the ratio of total gross profit to net sales. View historical data on Medilink-Global UK and its competitors. This is near median its historical median of 32.00. Over the past decade, Medilink-Global UK's Gross Margin % has ranged from 6.76 to 38.87.
Is Medilink-Global UK's Gross Margin % too high?
Medilink-Global UK's current Gross Margin % of 34.11% is near median its 10-year median of 32.00. Over the past 10 years, this metric has ranged from a low of 6.76 to a high of 38.87. The Healthcare Providers & Services industry median Gross Margin % is 40.01. Medilink-Global UK's value of 34.11% is 14.7% below this industry median.
How does Medilink-Global UK's Gross Margin % compare to competitors?
Medilink-Global UK's Gross Margin % of 34.11% can be compared against companies in the Healthcare Providers & Services industry. The industry median Gross Margin % is 40.01. Medilink-Global UK's value of 34.11% is 14.7% below this benchmark. Historically, Medilink-Global UK's own Gross Margin % has ranged from 6.76 to 38.87 over the past decade. While the company's 10-year median is 32.00 vs. the industry median of 40.01, Medilink-Global UK has consistently been below 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.01, based on 628 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. Medilink-Global UK's current Gross Margin % of 34.11% is 14.7% below 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 Medilink-Global UK and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Medilink-Global UK's current Gross Margin % is 34.11%, which is near median its own 10-year median of 32.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medilink-Global UK stock overvalued right now?
Medilink-Global UK (LSE:MEDI) has a current Gross Margin % of 34.11%. The current Gross Margin % is 34.11%, which is near median its 10-year median of 32.00 and 14.7% below the Healthcare Providers & Services industry median of 40.01. 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 Medilink-Global UK (LSE:MEDI), the current Gross Margin % is 34.11% as of Jun. 2016. 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.
Medilink-Global UK Ltd was incorporated in Jersey. The Company provides third party administrator services via Electronic Healthcard Network that facilitate the administration of medical claims and healthcare data management for insurance companies and corporate clients. The Company's operating segments are Third party administrator segment is derived from aggregating Malaysia and Singapore entity, while Software licensing segment represent a single entity from Malaysia.
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