The historical rank and industry rank for SITO Mobile's Gross Margin % or its related term are showing as below:
STTO's Gross Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 51.415 * Ranked among companies with meaningful Gross Margin % only.
SITO Mobile had a gross margin of 15.27% for the quarter that ended in Sep. 2019 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SITO Mobile was 0.00% per year.
SITO Mobile (OTCPK:STTO) 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
SITO Mobile had a gross margin of 15.27% for the quarter that ended in Sep. 2019 => No sustainable 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.
SITO Mobile Gross Margin % Related Terms
SITO Mobile Gross Margin % Historical Data
* Premium members only.
The historical data trend for SITO Mobile'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.
STTO vs MTSL, IQST, WINMQ: Gross Margin % Comparison
For the Telecom Services subindustry, SITO Mobile'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.
SITO Mobile Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, SITO Mobile's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SITO Mobile'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.
SITO Mobile (STTO) has a Gross Margin % of 15.27% as of Sep. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on SITO Mobile and its competitors.
Is SITO Mobile's Gross Margin % too high?
SITO Mobile's current Gross Margin % is 15.27%. The Telecommunication Services industry median Gross Margin % is 51.42. SITO Mobile's value of 15.27% is 70.3% below this industry median. Overall, SITO Mobile has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does SITO Mobile's Gross Margin % compare to MTSL and IQST?
SITO Mobile's Gross Margin % of 15.27% can be compared against companies in the Telecommunication Services industry. The industry median Gross Margin % is 51.42. SITO Mobile's value of 15.27% is 70.3% below 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 344 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. SITO Mobile's current Gross Margin % of 15.27% is 70.3% below 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 SITO Mobile and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SITO Mobile's current Gross Margin % is 15.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SITO Mobile stock overvalued right now?
SITO Mobile (STTO) has a current Gross Margin % of 15.27%. The current Gross Margin % is 15.27% and 70.3% below the Telecommunication Services industry median of 51.42. SITO Mobile's overall GF Score™ is 12/100. 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 SITO Mobile (STTO), the current Gross Margin % is 15.27% as of Sep. 2019. 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.
SITO Mobile Ltd operates a mobile location-based advertising platform serving businesses, advertisers, and brands. Business activity of the group is operated SITO Location Based Advertising and SITO Mobile Messaging source. SITO Location Based Advertising displays advertisements and videos on behalf of advertisers including various features, such as geo-fencing, verified walk-in, behavioral targeting, and analytics and optimization; and SITO Mobile Messaging is a platform for building and controlling tailored programs including messaging and customer incentive programs. Its platform and tools are designed to enable large brands or anyone with substantial reach to utilize the mobile device as a new means to communicate.
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