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
Marin Software had a gross margin of 60.23% for the quarter that ended in Sep. 2024 => 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.
Marin Software Gross Margin % Related Terms
Marin Software Gross Margin % Historical Data
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The historical data trend for Marin Software'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.
MRINQ vs BBLR, RTCJD, XYLB: Gross Margin % Comparison
For the Software - Application subindustry, Marin Software'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.
Marin Software Gross Margin % vs Software Industry
For the Software industry and Technology sector, Marin Software's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Marin Software'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.
Marin Software (MRINQ) has a Gross Margin % of 60.23% as of Sep. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Marin Software and its competitors.
Is Marin Software's Gross Margin % too high?
Marin Software's current Gross Margin % is 60.23%. The Software industry median Gross Margin % is 40.49. Marin Software's value of 60.23% is 48.8% above this industry median. Overall, Marin Software has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Marin Software's Gross Margin % compare to BBLR and RTCJD?
Marin Software's Gross Margin % of 60.23% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.49. Marin Software's value of 60.23% is 48.8% above this benchmark. 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. Marin Software's current Gross Margin % of 60.23% is 48.8% 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 Marin Software 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. Marin Software's current Gross Margin % is 60.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Marin Software stock overvalued right now?
Marin Software (MRINQ) has a current Gross Margin % of 60.23%. The current Gross Margin % is 60.23% and 48.8% above the Software industry median of 40.49. Marin Software's overall GF Score™ is 12/100. 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 Marin Software (MRINQ), the current Gross Margin % is 60.23% as of Sep. 2024. 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.
Marin Software Inc provides a cloud-based digital advertising management solution for search, display, social, and mobile advertising channels to improve financial performance, realize efficiencies and time savings, and improve business decisions. The company's enterprise marketing software platform is offered as an integrated software-as-a-service (SaaS) solution for advertisers and agencies. Its software solution is designed to help its customers measure the effectiveness of their advertising campaigns through its reporting and analytics capabilities; and manage and execute campaigns through its user interface and underlying technology that streamlines and automates functions. All the business activity of the firm is functioned through the geographical regions of The United States.
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