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
Winland Holdings had a gross margin of 38.88% for the quarter that ended in Jun. 2017 => 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.
Winland Holdings Gross Margin % Related Terms
Winland Holdings Gross Margin % Historical Data
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The historical data trend for Winland 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.
WELX vs TRCK, IMLE, EMRN: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Winland 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.
Winland Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Winland Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Winland 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.
Winland Holdings (WELX) has a Gross Margin % of 38.88% as of Jun. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Winland Holdings and its competitors.
Is Winland Holdings' Gross Margin % too high?
Winland Holdings' current Gross Margin % is 38.88%. The Hardware industry median Gross Margin % is 24.57. Winland Holdings' value of 38.88% is 58.3% above this industry median.
How does Winland Holdings' Gross Margin % compare to TRCK and IMLE?
Winland Holdings' Gross Margin % of 38.88% can be compared against companies in the Hardware industry. The industry median Gross Margin % is 24.57. Winland Holdings' value of 38.88% is 58.3% 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 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. Winland Holdings's current Gross Margin % of 38.88% is 58.3% 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 Winland Holdings and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Winland Holdings's current Gross Margin % is 38.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Winland Holdings stock overvalued right now?
Winland Holdings (WELX) has a current Gross Margin % of 38.88%. The current Gross Margin % is 38.88% and 58.3% above the Hardware industry median of 24.57. 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 Winland Holdings (WELX), the current Gross Margin % is 38.88% as of Jun. 2017. 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.
Winland Holdings Corp designs and develops critical condition monitoring devices, including EnviroAlert Professional, EnviroAlert, WaterBug, TempAlert, and Power Out Alert, to protect assets from risks such as water damage, humidity, temperature extremes, and power loss across industries such as agriculture, construction, healthcare, and manufacturing. Its products are marketed through an international network of distributors, dealers, and integrators and are compatible with hardwired or wireless alarm systems. The company also offers INSIGHT, a cloud-based monitoring platform providing alerting, reporting, and logging services. It operates through three segments: Winland Electronics, which generates the majority of revenue, Winland Capital Corp., and Winland Mining.
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