NEPG (NEP Group) Gross Margin %: 66.38% (As of Dec. 2014)


What is NEP Group Gross Margin %?

NEP Group NEPG Gross Margin % is 66.38% as of Dec. 2014.

Gross Margin % is calculated as gross profit divided by its revenue. NEP Group's Gross Profit for the six months ended in Dec. 2014 was $293.88 Mil. NEP Group's Revenue for the six months ended in Dec. 2014 was $442.75 Mil. Therefore, NEP Group's Gross Margin % for the quarter that ended in Dec. 2014 was 66.38%.


The historical rank and industry rank for NEP Group's Gross Margin % or its related term are showing as below:


NEPG's Gross Margin % is not ranked *
in the Media - Diversified industry.
Industry Median: 38.91
* Ranked among companies with meaningful Gross Margin % only.

NEP Group had a gross margin of 66.38% for the quarter that ended in Dec. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NEP Group was 0.00% per year.


NEP Group  (NYSE:NEPG) 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

NEP Group had a gross margin of 66.38% for the quarter that ended in Dec. 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.


NEP Group Gross Margin % Related Terms


NEP Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for NEP Group'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.

NEP Group Gross Margin % Chart

NEP Group Annual Data
Trend Dec13 Dec14
Gross Margin %
70.89 66.38

NEP Group Semi-Annual Data
Dec13 Dec14
Gross Margin % 70.89 66.38

NEPG vs CRCO, ASKH, PTSX: Gross Margin % Comparison

For the Broadcasting subindustry, NEP Group'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.


NEP Group Gross Margin % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, NEP Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where NEP Group's Gross Margin % falls into.



NEP Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

NEP Group's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=293.9 / 442.752
=(Revenue - Cost of Goods Sold) / Revenue
=(442.752 - 148.871) / 442.752
=66.38 %

NEP Group's Gross Margin for the quarter that ended in Dec. 2014 is calculated as


Gross Margin % (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=293.9 / 442.752
=(Revenue - Cost of Goods Sold) / Revenue
=(442.752 - 148.871) / 442.752
=66.38 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 66.38% mean?
NEP Group (NEPG) has a Gross Margin % of 66.38% as of Dec. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on NEP Group and its competitors.
Is NEP Group's Gross Margin % too high?
NEP Group's current Gross Margin % is 66.38%. The Media - Diversified industry median Gross Margin % is 38.91. NEP Group's value of 66.38% is 70.6% above this industry median.
How does NEP Group's Gross Margin % compare to CRCO and ASKH?
NEP Group's Gross Margin % of 66.38% can be compared against companies in the Media - Diversified industry. The industry median Gross Margin % is 38.91. NEP Group's value of 66.38% is 70.6% 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.91, based on 946 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. NEP Group's current Gross Margin % of 66.38% is 70.6% 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 NEP Group and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEP Group's current Gross Margin % is 66.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEP Group stock overvalued right now?
NEP Group (NEPG) has a current Gross Margin % of 66.38%. The current Gross Margin % is 66.38% and 70.6% above the Media - Diversified industry median of 38.91. 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 NEP Group (NEPG), the current Gross Margin % is 66.38% as of Dec. 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.

NEP Group Business Description

NEP Group Inc was founded on December 24, 2012. The Company is a provider of customized broadcast solutions to the live sports and entertainment markets offering various broadcast and live event services. The Company's engineers design live event solutions and work side-by-side with its clients to customize its solutions and provide real-time support during a broadcast or live event to ensure a seamlessly delivered production. The Company has developed a range of services operating inside and outside of the United States and has supported events. It serves the premium sports, entertainment and other live event production markets, where it offers mission-critical outsourced solutions, including remote production, studio production, video display and host broadcasting. It competes in three primary geographies: the United States, Europe and Australia, servicing the sports, entertainment and other live events markets. It competes against F&F Productions, Game Creek Video, Lyon Video and Mobile Television Group in the United States; Gearhouse Broadcast in Australia; CTV Outside Broadcasts and Telegenic in the U.K.; AMP Visuals, Euro Media Group, Mediapro Group and Top Vision in Continental Europe.