Turbo Power Systems Inc gross margin has been in long term decline. The average rate of decline per year is -6.1%.
The historical rank and industry rank for Turbo Power Systems's Gross Margin % or its related term are showing as below:
LSE:TPS'
s Gross Margin % Range Over the Past 10 Years
Min: -78.14 Med: 31.31 Max: 100
Current: 21.59
During the past 13 years, the highestGross Margin % of Turbo Power Systems was 100.00%. The lowest was -78.14%. And the median was 31.31%.
LSE:TPS's Gross Margin % is not ranked
in the Industrial Products industry.
Industry Median: 26.82
vs LSE:TPS: 21.59
Turbo Power Systems had a gross margin of 51.01% for the quarter that ended in Jun. 2017 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Turbo Power Systems was -6.10% per year.
Turbo Power Systems (LSE:TPS) 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
Turbo Power Systems had a gross margin of 51.01% for the quarter that ended in Jun. 2017 => 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.
Turbo Power Systems Gross Margin % Related Terms
Turbo Power Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Turbo Power Systems'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.
Turbo Power Systems Gross Margin % Competitor Comparison
For the Specialty Industrial Machinery subindustry, Turbo Power Systems'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.
Turbo Power Systems Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Turbo Power Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Turbo Power Systems'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.
Turbo Power Systems (LSE:TPS) has a Gross Margin % of 51.01% as of Jun. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Turbo Power Systems and its competitors. This is 63% above median its historical median of 31.31.
Is Turbo Power Systems' Gross Margin % too high?
Turbo Power Systems' current Gross Margin % of 51.01% is 63% above median its 10-year median of 31.31. The Industrial Products industry median Gross Margin % is 26.82. Turbo Power Systems' value of 51.01% is 90.2% above this industry median.
How does Turbo Power Systems' Gross Margin % compare to competitors?
Turbo Power Systems' Gross Margin % of 51.01% can be compared against companies in the Industrial Products industry. The industry median Gross Margin % is 26.82. Turbo Power Systems' value of 51.01% is 90.2% above this benchmark. While the company's 10-year median is 31.31 vs. the industry median of 26.82, Turbo Power Systems 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,998 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. Turbo Power Systems's current Gross Margin % of 51.01% is 90.2% 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 Turbo Power Systems and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Turbo Power Systems's current Gross Margin % is 51.01%, which is 63% above median its own 10-year median of 31.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Turbo Power Systems stock overvalued right now?
Turbo Power Systems (LSE:TPS) has a current Gross Margin % of 51.01%. The current Gross Margin % is 51.01%, which is 63% above median its 10-year median of 31.31 and 90.2% above the Industrial Products industry median of 26.82. 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 Turbo Power Systems (LSE:TPS), the current Gross Margin % is 51.01% as of Jun. 2017. 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.
Turbo Power Systems Inc was incorporated on March 23, 1987. The Company designs and manufactures high-speed electric motors, generators and power electronics systems and provides bespoke solutions to transport, industrial, energy conversion, and military markets The Company conducts operations through its wholly owned subsidiary company, Turbo Power Systems Limited.
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