UltrasisLSE:ULT Gross Margin % is 85.43% as of Jul. 2014, which is 13% below its 10-year median of 97.95. The stock has 2 warning signs investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. Ultrasis's Gross Profit for the
six
months ended in Jul. 2014 was £1.57 Mil. Ultrasis's Revenue for the
six
months ended in Jul. 2014 was £1.83 Mil. Therefore, Ultrasis's Gross Margin % for the quarter that ended in Jul. 2014 was 85.43%.
The historical rank and industry rank for Ultrasis's Gross Margin % or its related term are showing as below:
LSE:ULT'
s Gross Margin % Range Over the Past 10 Years
Min: -0.83 Med: 97.95 Max: 100
Current: 83.13
During the past 13 years, the highestGross Margin % of Ultrasis was 100.00%. The lowest was -0.83%. And the median was 97.95%.
LSE:ULT's Gross Margin % is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 40.09
vs LSE:ULT: 83.13
Ultrasis had a gross margin of 85.43% for the quarter that ended in Jul. 2014 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ultrasis was 0.90% per year.
Ultrasis (LSE:ULT) 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
Ultrasis had a gross margin of 85.43% for the quarter that ended in Jul. 2014 => 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.
Ultrasis Gross Margin % Related Terms
Ultrasis Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ultrasis'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 Health Information Services subindustry, Ultrasis'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.
Ultrasis Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Ultrasis's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ultrasis'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.
Ultrasis (LSE:ULT) has a Gross Margin % of 85.43% as of Jul. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on Ultrasis and its competitors. This is 13% below median its historical median of 97.95.
Is Ultrasis' Gross Margin % too high?
Ultrasis' current Gross Margin % of 85.43% is 13% below median its 10-year median of 97.95. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Ultrasis' value of 85.43% is 113.1% above this industry median.
How does Ultrasis' Gross Margin % compare to competitors?
Ultrasis' Gross Margin % of 85.43% can be compared against companies in the Healthcare Providers & Services industry. The industry median Gross Margin % is 40.09. Ultrasis' value of 85.43% is 113.1% above this benchmark. While the company's 10-year median is 97.95 vs. the industry median of 40.09, Ultrasis 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 631 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. Ultrasis's current Gross Margin % of 85.43% is 113.1% 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 Ultrasis and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ultrasis's current Gross Margin % is 85.43%, which is 13% below median its own 10-year median of 97.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ultrasis stock overvalued right now?
Ultrasis (LSE:ULT) has a current Gross Margin % of 85.43%. The current Gross Margin % is 85.43%, which is 13% below median its 10-year median of 97.95 and 113.1% above the Healthcare Providers & Services industry median of 40.09. 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 Ultrasis (LSE:ULT), the current Gross Margin % is 85.43% as of Jul. 2014. 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.
Ultrasis PLC was incorporated in November 23, 1981. The Company through its subsidiary provides healthcare products and services provided via the medium of technology or face to face, that help people maintain, regain and improve their physical, psychological and social well-being. Its product includes Beating the Blues(r), GetFit Wellness, My Brain Solutions, The Relief Series, Drink & Drug Wise, Calm Workplace, and Optimise Me, Screenetics and Joggle.
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