Motive TelevisionLSE:MTV Gross Margin % is 43.54% as of Jun. 2015, which is 84% above its 10-year median of 23.70. The stock has 5 warning signs investors should review.
Motive Television PLC gross margin has been in long term decline. The average rate of decline per year is %.
The historical rank and industry rank for Motive Television's Gross Margin % or its related term are showing as below:
LSE:MTV'
s Gross Margin % Range Over the Past 10 Years
Min: 7.6 Med: 23.7 Max: 46.92
Current: 46.92
During the past 10 years, the highestGross Margin % of Motive Television was 46.92%. The lowest was 7.60%. And the median was 23.70%.
LSE:MTV's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.92
vs LSE:MTV: 46.92
Motive Television had a gross margin of 43.54% for the quarter that ended in Jun. 2015 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Motive Television was 0.00% per year.
Motive Television (LSE:MTV) 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
Motive Television had a gross margin of 43.54% for the quarter that ended in Jun. 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.
Motive Television Gross Margin % Related Terms
Motive Television Gross Margin % Historical Data
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The historical data trend for Motive Television'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.
Motive Television Gross Margin % Competitor Comparison
For the Broadcasting subindustry, Motive Television'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.
Motive Television Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Motive Television's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Motive Television'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.
Motive Television (LSE:MTV) has a Gross Margin % of 43.54% as of Jun. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on Motive Television and its competitors. This is 84% above median its historical median of 23.70. Over the past decade, Motive Television's Gross Margin % has ranged from 7.60 to 46.92.
Is Motive Television's Gross Margin % too high?
Motive Television's current Gross Margin % of 43.54% is 84% above median its 10-year median of 23.70. Over the past 10 years, this metric has ranged from a low of 7.60 to a high of 46.92. The Media - Diversified industry median Gross Margin % is 38.92. Motive Television's value of 43.54% is 11.9% above this industry median.
How does Motive Television's Gross Margin % compare to competitors?
Motive Television's Gross Margin % of 43.54% can be compared against companies in the Media - Diversified industry. The industry median Gross Margin % is 38.92. Motive Television's value of 43.54% is 11.9% above this benchmark. Historically, Motive Television's own Gross Margin % has ranged from 7.60 to 46.92 over the past decade. While the company's 10-year median is 23.70 vs. the industry median of 38.92, Motive Television 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.92, based on 945 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. Motive Television's current Gross Margin % of 43.54% is 11.9% 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 Motive Television and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motive Television's current Gross Margin % is 43.54%, which is 84% above median its own 10-year median of 23.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motive Television stock overvalued right now?
Motive Television (LSE:MTV) has a current Gross Margin % of 43.54%. The current Gross Margin % is 43.54%, which is 84% above median its 10-year median of 23.70 and 11.9% above the Media - Diversified industry median of 38.92. 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 Motive Television (LSE:MTV), the current Gross Margin % is 43.54% as of Jun. 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.
Motive Television PLC was incorporated in the United Kingdom on December 22, 2004. The Company along with its subsidiaries is engaged in providing software and services to Television Broadcasters. The Company operates in two segments including; Digital Television Technology and Television Production (Content). The Company's solution offering include Content Express and TabletTV enabling TV providers to offer audiences more, giving them a competitive edge and delivering new revenues. The Content Express enables viewers to watch whatever they want, when they want, on any screen without having to build new networks. The Content Express software provides secure delivery and management of non-linear digital content across any type of broadcast network to any consumer-facing screen. It provides one-stop shop for digital terrestrial broadcasters, satellite, DTT, and cable pay television platforms, and Internet OTT content providers to offer new services including Video on Demand, Catch-up television, Tablet Television, Targeted Advertising for VOD, Mocast for 4G LTE, and Virtual channels and Video2Go. The Tablet TV designed to address the U.S. tablet and smartphone market, meeting the demand for watching long-form video on devices.
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