Gross Margin % is calculated as gross profit divided by its revenue. Photronics's Gross Profit for the
three
months ended in Jul. 2024 was $75.1 Mil. Photronics's Revenue for the
three
months ended in Jul. 2024 was $211.0 Mil. Therefore, Photronics's Gross Margin % for the quarter that ended in Jul. 2024 was 35.61%.
The historical rank and industry rank for Photronics's Gross Margin % or its related term are showing as below:
PLAB'
s Gross Margin % Range Over the Past 10 Years
Min: 20.26 Med: 24.56 Max: 37.68
Current: 36.54
During the past 13 years, the highestGross Margin % of Photronics was 37.68%. The lowest was 20.26%. And the median was 24.56%.
PLAB's Gross Margin % is ranked better than 65.41% of 983
companies
in the Semiconductors industry
Industry Median: 28.33
vs PLAB: 36.54
Photronics had a gross margin of 35.61% for the quarter that ended in Jul. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Photronics was 11.20% per year.
Photronics Gross Margin % Historical Data
The historical data trend for Photronics'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 Photronics's Gross Margin %
For the Semiconductor Equipment & Materials subindustry, Photronics'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.
Photronics's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Photronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Photronics'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.
Photronics (NAS:PLAB) 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
Photronics had a gross margin of 35.61% for the quarter that ended in Jul. 2024 => 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.
Photronics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Photronics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Photronics Inc is a U.S.-based company that is principally engaged in manufacturing photomasks. The photomasks are photographic quartz plates that contain microscopic images of electronic circuits that are used as a component in the manufacture of integrated circuits and flat-panel displays. The revenue from products designed for integrated circuits production accounts for the majority of total revenue, with the rest derived from products for flat-panel display production. The company's assets are located in Taiwan, Korea, and the United States. It generates revenue worldwide, including in the United States, Europe, Taiwan, Korea, China, and elsewhere in Asia, with Taiwan contributing the majority of total revenue.
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