Gross Margin % is calculated as gross profit divided by its revenue. Compx International's Gross Profit for the
three
months ended in Dec. 2023 was $13.6 Mil. Compx International's Revenue for the
three
months ended in Dec. 2023 was $43.2 Mil. Therefore, Compx International's Gross Margin % for the quarter that ended in Dec. 2023 was 31.56%.
Warning Sign:
Compx International Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Compx International's Gross Margin % or its related term are showing as below:
CIX'
s Gross Margin % Range Over the Past 10 Years
Min: 28.68 Med: 30.85 Max: 32.37
Current: 30.52
During the past 13 years, the highestGross Margin % of Compx International was 32.37%. The lowest was 28.68%. And the median was 30.85%.
CIX's Gross Margin % is ranked worse than 55.43% of 994
companies
in the Business Services industry
Industry Median: 34.85
vs CIX: 30.52
Compx International had a gross margin of 31.56% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Compx International was -1.30% per year.
Compx International Gross Margin % Historical Data
The historical data trend for Compx International'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.
For the Security & Protection Services subindustry, Compx International'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.
Compx International Gross Margin % Distribution
For the Business Services industry and Industrials sector, Compx International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Compx International'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.
Compx International (AMEX:CIX) 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
Compx International had a gross margin of 31.56% for the quarter that ended in Dec. 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.
Compx International Gross Margin % Related Terms
Thank you for viewing the detailed overview of Compx International's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Compx International (Compx International) Business Description
Compx International Inc is a manufacturer of security products. Its security products are primarily used in recreational transportation, postal, office & institutional furniture, cabinetry, tool storage, healthcare, and a variety of other industries. Also, it is engaged in the manufacturing of stainless steel exhaust systems, gauges, throttle controls, and trim tabs for the recreational marine industry. The company's operating segment includes Security Products and Marine Components. The company generates maximum revenue from the Security Products segment, which manufactures mechanical and electrical cabinet locks and other locking mechanisms. Its geographical segments are the United States, Canada, Mexico, and others, of which the United States accounts for the vast majority of revenue.
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