The historical rank and industry rank for SPO Networks's Gross Margin % or its related term are showing as below:
SPOI's Gross Margin % is not ranked *
in the Diversified Financial Services industry.
Industry Median: 42.14 * Ranked among companies with meaningful Gross Margin % only.
SPO Networks had a gross margin of 61.91% for the quarter that ended in May. 2006 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SPO Networks was 0.00% per year.
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
SPO Networks had a gross margin of 61.91% for the quarter that ended in May. 2006 => 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.
SPO Networks Gross Margin % Related Terms
SPO Networks Gross Margin % Historical Data
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The historical data trend for SPO Networks'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.
SPOI vs GKIT, GPVRF, SORL: Gross Margin % Comparison
For the Shell Companies subindustry, SPO Networks'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.
SPO Networks Gross Margin % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, SPO Networks's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SPO Networks'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.
SPO Networks (SPOI) has a Gross Margin % of 61.91% as of May. 2006. Gross margin is the ratio of total gross profit to net sales. View historical data on SPO Networks and its competitors.
Is SPO Networks' Gross Margin % too high?
SPO Networks' current Gross Margin % is 61.91%. The Diversified Financial Services industry median Gross Margin % is 42.14. SPO Networks' value of 61.91% is 46.9% above this industry median.
How does SPO Networks' Gross Margin % compare to GKIT and GPVRF?
SPO Networks' Gross Margin % of 61.91% can be compared against companies in the Diversified Financial Services industry. The industry median Gross Margin % is 42.14. SPO Networks' value of 61.91% is 46.9% 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 Diversified Financial Services company?
The median Gross Margin % among Diversified Financial Services companies is 42.14, based on 73 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. SPO Networks's current Gross Margin % of 61.91% is 46.9% 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 SPO Networks and its competitors. For the Diversified Financial Services industry, the median Gross Margin % is 42.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPO Networks's current Gross Margin % is 61.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPO Networks stock overvalued right now?
SPO Networks (SPOI) has a current Gross Margin % of 61.91%. The current Gross Margin % is 61.91% and 46.9% above the Diversified Financial Services industry median of 42.14. 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 SPO Networks (SPOI), the current Gross Margin % is 61.91% as of May. 2006. 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.
SPO Networks Inc is engaged in exploring potential acquisitions and opportunities in diversified industries, including performing and non-performing bank loans, coffee retailing and roasting, solid waste and recycling, general contracting, construction, and demolition with special waste remediation.
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