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
Paragon Technologies had a gross margin of 32.51% for the quarter that ended in Dec. 2008 => Competition eroding margins
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.
Paragon Technologies Gross Margin % Related Terms
Paragon Technologies Gross Margin % Historical Data
* Premium members only.
The historical data trend for Paragon Technologies'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.
PGNT vs AMMX, ARTW, TURV: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, Paragon Technologies'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.
Paragon Technologies Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Paragon Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paragon Technologies'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.
Paragon Technologies (PGNT) has a Gross Margin % of 32.51% as of Dec. 2008. Gross margin is the ratio of total gross profit to net sales. View historical data on Paragon Technologies and its competitors.
Is Paragon Technologies' Gross Margin % too high?
Paragon Technologies' current Gross Margin % is 32.51%. The Hardware industry median Gross Margin % is 24.52. Paragon Technologies' value of 32.51% is 32.6% above this industry median.
How does Paragon Technologies' Gross Margin % compare to AMMX and ARTW?
Paragon Technologies' Gross Margin % of 32.51% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.52. Paragon Technologies' value of 32.51% is 32.6% 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,453 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. Paragon Technologies's current Gross Margin % of 32.51% is 32.6% 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 Paragon Technologies and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paragon Technologies's current Gross Margin % is 32.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paragon Technologies stock overvalued right now?
Paragon Technologies (PGNT) has a current Gross Margin % of 32.51%. The current Gross Margin % is 32.51% and 32.6% above the Hardware industry median of 24.52. 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 Paragon Technologies (PGNT), the current Gross Margin % is 32.51% as of Dec. 2008. 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.
Paragon Technologies Inc is a diversified holding company composed of three business segments: Automation, Distribution, and Real Estate. In addition, it may also invest its cash balance in marketable securities. The company generates a majority of its revenue from the Distribution segment, in which it distributes servers, workstations, storage, networking, high-end printers, high-end audio visual and power protection systems, notebook computers, desktop computers, printers, projectors, gaming, and accessories. Under this segment, it also sells consumer electronics and home appliances and provides services such as managed services, printing, electronic documents management, electronic invoicing, and high-capacity storage solutions to businesses.
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