The historical rank and industry rank for Network 1 Financial Group's Gross Margin % or its related term are showing as below:
NTFL's Gross Margin % is not ranked *
in the Capital Markets industry.
Industry Median: 48.3 * Ranked among companies with meaningful Gross Margin % only.
Network 1 Financial Group had a gross margin of 49.83% for the quarter that ended in Mar. 2012 => Durable competitive advantage
Network 1 Financial Group (OTCPK:NTFL) 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
Network 1 Financial Group had a gross margin of 49.83% for the quarter that ended in Mar. 2012 => 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.
Network 1 Financial Group Gross Margin % Related Terms
Network 1 Financial Group 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.
Network 1 Financial Group Gross Margin % Competitor Comparison
For the Capital Markets subindustry, Network 1 Financial 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.
Network 1 Financial Group Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Network 1 Financial Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Network 1 Financial Group'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.
Network 1 Financial Group (NTFL) has a Gross Margin % of 49.83% as of Mar. 2012. Gross margin is the ratio of total gross profit to net sales. View historical data on Network 1 Financial Group and its competitors.
Is Network 1 Financial Group's Gross Margin % too high?
Network 1 Financial Group's current Gross Margin % is 49.83%. The Capital Markets industry median Gross Margin % is 48.30. Network 1 Financial Group's value of 49.83% is 3.2% above this industry median.
How does Network 1 Financial Group's Gross Margin % compare to competitors?
Network 1 Financial Group's Gross Margin % of 49.83% can be compared against companies in the Capital Markets industry. The industry median Gross Margin % is 48.30. Network 1 Financial Group's value of 49.83% is 3.2% 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.30, based on 617 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. Network 1 Financial Group's current Gross Margin % of 49.83% is 3.2% 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 Network 1 Financial Group and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Network 1 Financial Group's current Gross Margin % is 49.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Network 1 Financial Group stock overvalued right now?
Network 1 Financial Group (NTFL) has a current Gross Margin % of 49.83%. The current Gross Margin % is 49.83% and 3.2% above the Capital Markets industry median of 48.30. 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 Network 1 Financial Group (NTFL), the current Gross Margin % is 49.83% as of Mar. 2012. 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.
Network 1 Financial Group Inc is registered as a broker-dealer with the Securities and Exchange Commission in the State of Texas and various other states. The company's clients include high net worth individuals from many countries, institutional investors, managed pension funds, and hedge funds.
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