PPMT (Profit Planners Management) Gross Margin %: 40.04% (As of Feb. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Profit Planners Management Gross Margin %?

Profit Planners Management PPMT Gross Margin % is 40.04% as of Feb. 2017.

Gross Margin % is calculated as gross profit divided by its revenue. Profit Planners Management's Gross Profit for the three months ended in Feb. 2017 was $0.19 Mil. Profit Planners Management's Revenue for the three months ended in Feb. 2017 was $0.48 Mil. Therefore, Profit Planners Management's Gross Margin % for the quarter that ended in Feb. 2017 was 40.04%.


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


PPMT's Gross Margin % is not ranked *
in the Business Services industry.
Industry Median: 34.515
* Ranked among companies with meaningful Gross Margin % only.

Profit Planners Management had a gross margin of 40.04% for the quarter that ended in Feb. 2017 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Profit Planners Management was 0.00% per year.


Profit Planners Management  (OTCPK:PPMT) 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

Profit Planners Management had a gross margin of 40.04% for the quarter that ended in Feb. 2017 => 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.


Profit Planners Management Gross Margin % Related Terms


Profit Planners Management Gross Margin % Historical Data

* Premium members only.

The historical data trend for Profit Planners Management'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.

Profit Planners Management Gross Margin % Chart

Profit Planners Management Annual Data
Trend May10 May11 May12 May13 May14 May15 May16
Gross Margin %
Get a 7-Day Free Trial 27.98 34.52 23.24 32.35 47.76

Profit Planners Management Quarterly Data
May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.25 51.90 49.83 54.29 40.04

PPMT vs BMMCF: Gross Margin % Comparison

For the Specialty Business Services subindustry, Profit Planners Management'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.


Profit Planners Management Gross Margin % vs Business Services Industry

For the Business Services industry and Industrials sector, Profit Planners Management's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Profit Planners Management's Gross Margin % falls into.



Profit Planners Management Gross Margin % Calculation

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

Profit Planners Management's Gross Margin for the fiscal year that ended in May. 2016 is calculated as

Gross Margin % (A: May. 2016 )=Gross Profit (A: May. 2016 ) / Revenue (A: May. 2016 )
=0.6 / 1.294
=(Revenue - Cost of Goods Sold) / Revenue
=(1.294 - 0.676) / 1.294
=47.76 %

Profit Planners Management's Gross Margin for the quarter that ended in Feb. 2017 is calculated as


Gross Margin % (Q: Feb. 2017 )=Gross Profit (Q: Feb. 2017 ) / Revenue (Q: Feb. 2017 )
=0.2 / 0.477
=(Revenue - Cost of Goods Sold) / Revenue
=(0.477 - 0.286) / 0.477
=40.04 %

* 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 40.04% mean?
Profit Planners Management (PPMT) has a Gross Margin % of 40.04% as of Feb. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Profit Planners Management and its competitors.
Is Profit Planners Management's Gross Margin % too high?
Profit Planners Management's current Gross Margin % is 40.04%. The Business Services industry median Gross Margin % is 34.52. Profit Planners Management's value of 40.04% is 16% above this industry median.
How does Profit Planners Management's Gross Margin % compare to BMMCF?
Profit Planners Management's Gross Margin % of 40.04% can be compared against companies in the Business Services industry. The industry median Gross Margin % is 34.52. Profit Planners Management's value of 40.04% is 16% 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 34.52, based on 1,006 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. Profit Planners Management's current Gross Margin % of 40.04% is 16% 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 Profit Planners Management and its competitors. For the Business Services industry, the median Gross Margin % is 34.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Profit Planners Management's current Gross Margin % is 40.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Profit Planners Management stock overvalued right now?
Profit Planners Management (PPMT) has a current Gross Margin % of 40.04%. The current Gross Margin % is 40.04% and 16% above the Business Services industry median of 34.52. 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 Profit Planners Management (PPMT), the current Gross Margin % is 40.04% as of Feb. 2017. 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.

Profit Planners Management Business Description

Address 104 West 40th Street, 5th Floor, New York, NY, USA, 10701
Profit Planners Management Inc provides management, financial and marketing services and business solutions to public and private micro-cap companies.