The historical rank and industry rank for Zicom Electronic Security Systems's Gross Margin % or its related term are showing as below:
NSE:ZICOM's Gross Margin % is not ranked *
in the Business Services industry.
Industry Median: 34.48 * Ranked among companies with meaningful Gross Margin % only.
Zicom Electronic Security Systems had a gross margin of 87.10% for the quarter that ended in Sep. 2020 => Durable competitive advantage
Zicom Electronic Security Systems (NSE:ZICOM) 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
Zicom Electronic Security Systems had a gross margin of 87.10% for the quarter that ended in Sep. 2020 => 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.
Zicom Electronic Security Systems Gross Margin % Related Terms
Zicom Electronic Security Systems Gross Margin % Historical Data
* 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.
Zicom Electronic Security Systems Gross Margin % Chart
NSE:ZICOM vs ALLE, ADT, MSA: Gross Margin % Comparison
For the Security & Protection Services subindustry, Zicom Electronic Security 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.
Zicom Electronic Security Systems Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Zicom Electronic Security Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zicom Electronic Security 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.
Zicom Electronic Security Systems (NSE:ZICOM) has a Gross Margin % of 87.10% as of Sep. 2020. Gross margin is the ratio of total gross profit to net sales. View historical data on Zicom Electronic Security Systems and its competitors.
Is Zicom Electronic Security Systems' Gross Margin % too high?
Zicom Electronic Security Systems' current Gross Margin % is 87.10%. The Business Services industry median Gross Margin % is 34.48. Zicom Electronic Security Systems' value of 87.10% is 152.6% above this industry median. Overall, Zicom Electronic Security Systems has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Zicom Electronic Security Systems' Gross Margin % compare to ALLE and ADT?
Zicom Electronic Security Systems' Gross Margin % of 87.10% can be compared against companies in the Business Services industry. The industry median Gross Margin % is 34.48. Zicom Electronic Security Systems' value of 87.10% is 152.6% 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.48, based on 1,004 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. Zicom Electronic Security Systems's current Gross Margin % of 87.10% is 152.6% 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 Zicom Electronic Security Systems and its competitors. For the Business Services industry, the median Gross Margin % is 34.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zicom Electronic Security Systems's current Gross Margin % is 87.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zicom Electronic Security Systems stock overvalued right now?
Zicom Electronic Security Systems (NSE:ZICOM) has a current Gross Margin % of 87.10%. The current Gross Margin % is 87.10% and 152.6% above the Business Services industry median of 34.48. Zicom Electronic Security Systems' overall GF Score™ is 4/100. 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 Zicom Electronic Security Systems (NSE:ZICOM), the current Gross Margin % is 87.10% as of Sep. 2020. 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.
Zicom Electronic Security Systems Business Description
Zicom Electronic Security Systems Ltd markets and sells electronic security systems and equipment. The company sells, distributes, markets and installs and monitors electronic security systems, gadgets, and equipment and also provides annual maintenance services. Its products portfolio consists of access control systems, CCTV systems, finger print locks, fire alarm systems, intrusion detection systems, and video door phones. Majority of the revenue is derived from the provision of security and safety products and services.
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