THPHF (Thinkpath) Gross Margin %: 34.92% (As of Sep. 2007)

What is Thinkpath Gross Margin %?

Thinkpath THPHF -99.00% Gross Margin % is 34.92% as of Sep. 2007.

Gross Margin % is calculated as gross profit divided by its revenue. Thinkpath's Gross Profit for the three months ended in Sep. 2007 was $1.28 Mil. Thinkpath's Revenue for the three months ended in Sep. 2007 was $3.67 Mil. Therefore, Thinkpath's Gross Margin % for the quarter that ended in Sep. 2007 was 34.92%.

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

THPHF's Gross Margin % is not ranked ^*
in the Construction industry.
Industry Median: 20.705
* Ranked among companies with meaningful Gross Margin % only.

Thinkpath had a gross margin of 34.92% for the quarter that ended in Sep. 2007 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Thinkpath was 0.00% per year.

Thinkpath (OTCPK:THPHF) 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

Thinkpath had a gross margin of 34.92% for the quarter that ended in Sep. 2007 => 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.

Thinkpath Gross Margin % Related Terms

Thinkpath Gross Margin % Historical Data

* Premium members only.

The historical data trend for Thinkpath'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.

Thinkpath Gross Margin % Chart

Thinkpath Annual Data

Trend

Dec97

Dec98

Dec99

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Gross Margin %

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22.35

32.11

35.53

31.83

31.72

Thinkpath Quarterly Data
	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07
Gross Margin %	Get a 7-Day Free Trial															33.30	32.57	35.54	35.90	34.92

THPHF vs TSSI, SWMM, SFHI: Gross Margin % Comparison

For the Engineering & Construction subindustry, Thinkpath'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.

Thinkpath Gross Margin % vs Construction Industry

For the Construction industry and Industrials sector, Thinkpath's Gross Margin % distribution charts can be found below:

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

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Thinkpath Gross Margin % Calculation

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

Thinkpath's Gross Margin for the fiscal year that ended in Dec. 2006 is calculated as

Gross Margin % (A: Dec. 2006 )	=	Gross Profit (A: Dec. 2006 )	/	Revenue (A: Dec. 2006 )
	=	4.3	/	13.504
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(13.504 - 9.22)	/	13.504
	=	31.72 %

Thinkpath's Gross Margin for the quarter that ended in Sep. 2007 is calculated as

Gross Margin % (Q: Sep. 2007 )	=	Gross Profit (Q: Sep. 2007 )	/	Revenue (Q: Sep. 2007 )
	=	1.3	/	3.668
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3.668 - 2.387)	/	3.668
	=	34.92 %

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.

Frequently Asked Questions Learn more about Gross Margin % →

What does a Gross Margin % of 34.92% mean?

Thinkpath (THPHF) has a Gross Margin % of 34.92% as of Sep. 2007. Gross margin is the ratio of total gross profit to net sales. View historical data on Thinkpath and its competitors.

Is Thinkpath's Gross Margin % too high?

Thinkpath's current Gross Margin % is 34.92%. The Construction industry median Gross Margin % is 20.71. Thinkpath's value of 34.92% is 68.7% above this industry median.

How does Thinkpath's Gross Margin % compare to TSSI and SWMM?

Thinkpath's Gross Margin % of 34.92% can be compared against companies in the Construction industry. The industry median Gross Margin % is 20.71. Thinkpath's value of 34.92% is 68.7% 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 Construction company?

The median Gross Margin % among Construction companies is 20.71, based on 1,724 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. Thinkpath's current Gross Margin % of 34.92% is 68.7% 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 Thinkpath and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thinkpath's current Gross Margin % is 34.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Thinkpath stock overvalued right now?

Thinkpath (THPHF) has a current Gross Margin % of 34.92%. The current Gross Margin % is 34.92% and 68.7% above the Construction industry median of 20.71. 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 Thinkpath (THPHF), the current Gross Margin % is 34.92% as of Sep. 2007. 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.

Thinkpath Business Description

Industry Industrials Construction

Comparable Companies TSSI SWMM SFHI VSR ETOLF ESOA ENG LYOPF BBHDF JBKHF RCMT LMB CUUHF CNDUF GV IBIBF LAYN EMFGF LOUIF ORN

Address 365 Evans Avenue, Suite 602, Toronto, ON, CAN, M8Z 1K2

Website http://www.thinkpath.com

Thinkpath Inc provides customized engineering solutions with a wide range of support services guaranteeing timely, efficient and cost-effective completion of projects in numerous and varied industries. The company's customized solutions include Engineering & Design Services, Technical Publishing & Documentation and On-site Engineering Support.