The historical rank and industry rank for XFit Brands's Gross Margin % or its related term are showing as below:
XFTB's Gross Margin % is not ranked *
in the Travel & Leisure industry.
Industry Median: 44.02 * Ranked among companies with meaningful Gross Margin % only.
XFit Brands had a gross margin of 35.92% for the quarter that ended in Dec. 2016 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for XFit Brands 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
XFit Brands had a gross margin of 35.92% for the quarter that ended in Dec. 2016 => 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.
XFit Brands Gross Margin % Related Terms
XFit Brands Gross Margin % Historical Data
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The historical data trend for XFit Brands'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.
XFTB vs WESC, QSMG, SCRH: Gross Margin % Comparison
For the Leisure subindustry, XFit Brands'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.
XFit Brands Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, XFit Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where XFit Brands'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.
XFit Brands (XFTB) has a Gross Margin % of 35.92% as of Dec. 2016. Gross margin is the ratio of total gross profit to net sales. View historical data on XFit Brands and its competitors.
Is XFit Brands' Gross Margin % too high?
XFit Brands' current Gross Margin % is 35.92%. The Travel & Leisure industry median Gross Margin % is 44.02. XFit Brands' value of 35.92% is 18.4% below this industry median.
How does XFit Brands' Gross Margin % compare to WESC and QSMG?
XFit Brands' Gross Margin % of 35.92% can be compared against companies in the Travel & Leisure industry. The industry median Gross Margin % is 44.02. XFit Brands' value of 35.92% is 18.4% 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, based on 793 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. XFit Brands's current Gross Margin % of 35.92% is 18.4% 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 XFit Brands and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XFit Brands's current Gross Margin % is 35.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XFit Brands stock overvalued right now?
XFit Brands (XFTB) has a current Gross Margin % of 35.92%. The current Gross Margin % is 35.92% and 18.4% below the Travel & Leisure industry median of 44.02. 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 XFit Brands (XFTB), the current Gross Margin % is 35.92% as of Dec. 2016. 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.
XFit Brands Inc is active in the leisure industry. Its activities include design, development, and worldwide marketing and selling of functional equipment, training gear, apparel, and accessories for the impact sports market and fitness industry. Its products span the Impact Sports, Mixed Martial Arts (MMA), High and low impact fitness and Cross Training, and other Action Sports and are marketed and sold under the Throwdown, XFit Brands, and Transformations brand names.
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