The historical rank and industry rank for STWC Holdings's Gross Margin % or its related term are showing as below:
STWC's Gross Margin % is not ranked *
in the Business Services industry.
Industry Median: 34.46 * Ranked among companies with meaningful Gross Margin % only.
STWC Holdings had a gross margin of 70.16% for the quarter that ended in Oct. 2019 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for STWC Holdings 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
STWC Holdings had a gross margin of 70.16% for the quarter that ended in Oct. 2019 => 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.
STWC Holdings Gross Margin % Related Terms
STWC Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for STWC Holdings'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.
STWC vs DCAC, ABVN, WSCO: Gross Margin % Comparison
For the Consulting Services subindustry, STWC Holdings'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.
STWC Holdings Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, STWC Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where STWC Holdings'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.
STWC Holdings (STWC) has a Gross Margin % of 70.16% as of Oct. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on STWC Holdings and its competitors.
Is STWC Holdings' Gross Margin % too high?
STWC Holdings' current Gross Margin % is 70.16%. The Business Services industry median Gross Margin % is 34.46. STWC Holdings' value of 70.16% is 103.6% above this industry median.
How does STWC Holdings' Gross Margin % compare to DCAC and ABVN?
STWC Holdings' Gross Margin % of 70.16% can be compared against companies in the Business Services industry. The industry median Gross Margin % is 34.46. STWC Holdings' value of 70.16% is 103.6% 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 34.46, based on 1,007 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. STWC Holdings's current Gross Margin % of 70.16% is 103.6% 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 STWC Holdings and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. STWC Holdings's current Gross Margin % is 70.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is STWC Holdings stock overvalued right now?
STWC Holdings (STWC) has a current Gross Margin % of 70.16%. The current Gross Margin % is 70.16% and 103.6% above the Business Services industry median of 34.46. 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 STWC Holdings (STWC), the current Gross Margin % is 70.16% as of Oct. 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.
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