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Shearwater Group (STU:DTW1) Gross Margin % : 30.01% (As of Sep. 2023)


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What is Shearwater Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shearwater Group's Gross Profit for the six months ended in Sep. 2023 was €3.66 Mil. Shearwater Group's Revenue for the six months ended in Sep. 2023 was €12.18 Mil. Therefore, Shearwater Group's Gross Margin % for the quarter that ended in Sep. 2023 was 30.01%.

Warning Sign:

Shearwater Group PLC gross margin has been in long-term decline. The average rate of decline per year is -11.5%.


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

STU:DTW1' s Gross Margin % Range Over the Past 10 Years
Min: 24.17   Med: 30.52   Max: 58.27
Current: 26.09


During the past 13 years, the highest Gross Margin % of Shearwater Group was 58.27%. The lowest was 24.17%. And the median was 30.52%.

STU:DTW1's Gross Margin % is ranked worse than
71.42% of 2628 companies
in the Software industry
Industry Median: 41.705 vs STU:DTW1: 26.09

Shearwater Group had a gross margin of 30.01% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Shearwater Group was -11.50% per year.


Shearwater Group Gross Margin % Historical Data

The historical data trend for Shearwater Group'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.

* Premium members only.

Shearwater Group Gross Margin % Chart

Shearwater Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.15 30.87 31.15 30.17 24.17

Shearwater Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 38.78 26.57 25.16 23.50 30.01

Competitive Comparison of Shearwater Group's Gross Margin %

For the Software - Infrastructure subindustry, Shearwater Group'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.


Shearwater Group's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Shearwater Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shearwater Group's Gross Margin % falls into.



Shearwater Group Gross Margin % Calculation

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

Shearwater Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=7.3 / 30.248
=(Revenue - Cost of Goods Sold) / Revenue
=(30.248 - 22.937) / 30.248
=24.17 %

Shearwater Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=3.7 / 12.178
=(Revenue - Cost of Goods Sold) / Revenue
=(12.178 - 8.523) / 12.178
=30.01 %

* 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.


Shearwater Group  (STU:DTW1) 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

Shearwater Group had a gross margin of 30.01% for the quarter that ended in Sep. 2023 => 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.


Shearwater Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Shearwater Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Shearwater Group (STU:DTW1) Business Description

Traded in Other Exchanges
Address
1 King William Street, London, GBR, EC4N 7AF
Shearwater Group PLC is a UK-based company focused on providing digital resilience solutions. The company delivers cybersecurity, network monitoring technologies, managed security services, Data Loss Prevention, Identity & Access Security, IT Solutions, Penetration Testing & Red Teaming, and other services. Its operating segment includes software and services. The company generates maximum revenue from the Services segment. Its geographical segments include the United Kingdom(UK) and Europe(excluding the UK), North America, and the Rest of the world, of which the majority of the revenue is derived from the UK.

Shearwater Group (STU:DTW1) Headlines

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