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Comtech Telecommunications (Comtech Telecommunications) Gross Margin % : 32.18% (As of Jan. 2024)


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What is Comtech Telecommunications Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Comtech Telecommunications's Gross Profit for the three months ended in Jan. 2024 was $43.2 Mil. Comtech Telecommunications's Revenue for the three months ended in Jan. 2024 was $134.2 Mil. Therefore, Comtech Telecommunications's Gross Margin % for the quarter that ended in Jan. 2024 was 32.18%.

Warning Sign:

Comtech Telecommunications Corp gross margin has been in long-term decline. The average rate of decline per year is -2.2%.


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

CMTL' s Gross Margin % Range Over the Past 10 Years
Min: 32   Med: 38.12   Max: 45.2
Current: 32


During the past 13 years, the highest Gross Margin % of Comtech Telecommunications was 45.20%. The lowest was 32.00%. And the median was 38.12%.

CMTL's Gross Margin % is ranked better than
65.15% of 2439 companies
in the Hardware industry
Industry Median: 24.41 vs CMTL: 32.00

Comtech Telecommunications had a gross margin of 32.18% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Comtech Telecommunications was -2.20% per year.


Comtech Telecommunications Gross Margin % Historical Data

The historical data trend for Comtech Telecommunications'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.

* Premium members only.

Comtech Telecommunications Gross Margin % Chart

Comtech Telecommunications Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.83 36.78 36.78 36.99 33.54

Comtech Telecommunications Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.34 31.65 32.65 31.52 32.18

Competitive Comparison of Comtech Telecommunications's Gross Margin %

For the Communication Equipment subindustry, Comtech Telecommunications'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.


Comtech Telecommunications's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Comtech Telecommunications's Gross Margin % distribution charts can be found below:

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



Comtech Telecommunications Gross Margin % Calculation

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

Comtech Telecommunications's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=184.5 / 549.994
=(Revenue - Cost of Goods Sold) / Revenue
=(549.994 - 365.534) / 549.994
=33.54 %

Comtech Telecommunications's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=43.2 / 134.225
=(Revenue - Cost of Goods Sold) / Revenue
=(134.225 - 91.027) / 134.225
=32.18 %

* 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.


Comtech Telecommunications  (NAS:CMTL) 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

Comtech Telecommunications had a gross margin of 32.18% for the quarter that ended in Jan. 2024 => 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.


Comtech Telecommunications Gross Margin % Related Terms

Thank you for viewing the detailed overview of Comtech Telecommunications's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Comtech Telecommunications (Comtech Telecommunications) Business Description

Traded in Other Exchanges
Address
68 South Service Road, Suite 230, Melville, NY, USA, 11747
Comtech Telecommunications Corp is a provider of modern communications solutions. The company is engaged in designing, developing, producing and marketing products, systems, and services for communications solutions. It is engaged in two business segments, Satellite and Space Communications and Terrestrial and Wireless Networks. Majority of sales are generated from Satellite and Space Communications segment.
Executives
Wendi B. Carpenter director 2401 EAST 86TH ST., BLOOMINGTON MN 55425
Mark R. Quinlan director 150 EAST 52ND STREET, 21ST FLOOR, NEW YORK NY 10022
Bruce T Crawford director 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Ellen M. Lord director 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Maria Hedden officer: Chief Operating Officer 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Donald E. Walther officer: Chief Legal Officer 500 108TH AVENUE NE, SUITE 1500, BELLEVUE WA 98004
Michael Bondi officer: Corporate Controller 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Ken Allen Peterman director 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Yelena Simonyuk officer: Chief Legal Officer 68 S. SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Michael Porcelain officer: VP of Finance & Internal Audit 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Yacov A Shamash director
Lisa /adv Lesavoy director 166 E 63RD ST, NEW YORK NY 10021
Judy Chambers director 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
Richard L Burt officer: Sr. Vice President 68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747
John Branscum officer: Sr. Vice President COMTECH TELECOMMUNICATIONS CORP., 68 SOUTH SERVICE RD., SUITE 230, MELVILLE NY 11747