Gross Margin % is calculated as gross profit divided by its revenue. PowerFleet's Gross Profit for the
three
months ended in Sep. 2023 was $17.1 Mil. PowerFleet's Revenue for the
three
months ended in Sep. 2023 was $34.2 Mil. Therefore, PowerFleet's Gross Margin % for the quarter that ended in Sep. 2023 was 50.05%.
The historical rank and industry rank for PowerFleet's Gross Margin % or its related term are showing as below:
PWFL'
s Gross Margin % Range Over the Past 10 Years
Min: 40.74 Med: 47.59 Max: 51.95
Current: 50.02
During the past 13 years, the highestGross Margin % of PowerFleet was 51.95%. The lowest was 40.74%. And the median was 47.59%.
PWFL's Gross Margin % is ranked better than 88.27% of 2439
companies
in the Hardware industry
Industry Median: 24.34
vs PWFL: 50.02
PowerFleet had a gross margin of 50.05% for the quarter that ended in Sep. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PowerFleet was -0.90% per year.
PowerFleet Gross Margin % Historical Data
The historical data trend for PowerFleet'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 PowerFleet's Gross Margin %
For the Communication Equipment subindustry, PowerFleet'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.
PowerFleet's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, PowerFleet's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PowerFleet'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.
PowerFleet (NAS:PWFL) 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
PowerFleet had a gross margin of 50.05% for the quarter that ended in Sep. 2023 => 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.
PowerFleet Gross Margin % Related Terms
Thank you for viewing the detailed overview of PowerFleet's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
PowerFleet Inc provides subscription-based wireless Internet-of-Things (IoT) and machine-to-machine (M2M) solutions for securing, controlling, tracking, and managing high-value enterprise assets such as industrial trucks, trailers, containers, cargo, light vehicles, and heavy truck fleets. The firm's systems utilize radio frequency identification, Wi-fi, satellite communications, and sensor technology to manage its assets. It operates in the segment of Wireless IoT asset management. The company has a business presence in the U. S, Israel, and other countries, of which key revenue is derived from the U.S.
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