National CineMedia Inc gross margin has been in long-term decline. The average rate of decline per year is -4%.
The historical rank and industry rank for National CineMedia's Gross Margin % or its related term are showing as below:
NCMI'
s Gross Margin % Range Over the Past 10 Years
Min: 32.9 Med: 61.23 Max: 72.88
Current: 47.84
During the past 13 years, the highestGross Margin % of National CineMedia was 72.88%. The lowest was 32.90%. And the median was 61.23%.
NCMI's Gross Margin % is ranked better than 64.5% of 969
companies
in the Media - Diversified industry
Industry Median: 38.95
vs NCMI: 47.84
National CineMedia had a gross margin of 61.88% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for National CineMedia was -4.00% per year.
National CineMedia Gross Margin % Historical Data
The historical data trend for National CineMedia'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.
Competitive Comparison of National CineMedia's Gross Margin %
For the Advertising Agencies subindustry, National CineMedia'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.
National CineMedia's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, National CineMedia's Gross Margin % distribution charts can be found below:
* The bar in red indicates where National CineMedia'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.
National CineMedia (NAS:NCMI) 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
National CineMedia had a gross margin of 61.88% for the quarter that ended in Dec. 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.
National CineMedia Gross Margin % Related Terms
Thank you for viewing the detailed overview of National CineMedia's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
National CineMedia Inc is a cinema advertising platform in the U.S. It derives revenue from the sale of advertising to national, regional and local businesses through The Noovie Show, the cinema advertising and entertainment show seen on movie screens across the U.S., on LEN, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theater lobbies.
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