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KEYW Holding (KEYW Holding) Gross Margin % : 24.84% (As of Mar. 2019)


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What is KEYW Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KEYW Holding's Gross Profit for the three months ended in Mar. 2019 was $28.3 Mil. KEYW Holding's Revenue for the three months ended in Mar. 2019 was $113.8 Mil. Therefore, KEYW Holding's Gross Margin % for the quarter that ended in Mar. 2019 was 24.84%.


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


KEYW's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.74
* Ranked among companies with meaningful Gross Margin % only.

KEYW Holding had a gross margin of 24.84% for the quarter that ended in Mar. 2019 => Competition eroding margins

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


KEYW Holding Gross Margin % Historical Data

The historical data trend for KEYW Holding'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.

KEYW Holding Gross Margin % Chart

KEYW Holding Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.92 30.12 31.64 24.65 26.04

KEYW Holding Quarterly Data
Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 25.07 25.22 27.56 26.33 24.84

Competitive Comparison of KEYW Holding's Gross Margin %

For the Software - Application subindustry, KEYW Holding'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.


KEYW Holding's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, KEYW Holding's Gross Margin % distribution charts can be found below:

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



KEYW Holding Gross Margin % Calculation

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

KEYW Holding's Gross Margin for the fiscal year that ended in Dec. 2018 is calculated as

Gross Margin % (A: Dec. 2018 )=Gross Profit (A: Dec. 2018 ) / Revenue (A: Dec. 2018 )
=132 / 506.84
=(Revenue - Cost of Goods Sold) / Revenue
=(506.84 - 374.838) / 506.84
=26.04 %

KEYW Holding's Gross Margin for the quarter that ended in Mar. 2019 is calculated as


Gross Margin % (Q: Mar. 2019 )=Gross Profit (Q: Mar. 2019 ) / Revenue (Q: Mar. 2019 )
=28.3 / 113.761
=(Revenue - Cost of Goods Sold) / Revenue
=(113.761 - 85.501) / 113.761
=24.84 %

* 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.


KEYW Holding  (NAS:KEYW) 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

KEYW Holding had a gross margin of 24.84% for the quarter that ended in Mar. 2019 => 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.


KEYW Holding Gross Margin % Related Terms

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KEYW Holding (KEYW Holding) Business Description

Traded in Other Exchanges
N/A
Address
7740 Milestone Parkway, Suite 400, Hanover, MD, USA, 21076
KEYW Holding is a provider of mission-critical cybersecurity, cybersuperiority, and geospatial intelligence solutions to U.S. government defense, intelligence, and national security agencies. Its solution includes collection, processing, analysis, and dissemination of intelligence information in cyberspace and geospace domains. The company derives revenue from fixed-price contracts and software licensing and maintenance. KEYW Holding generates a large majority of its revenue from the U.S. Department of Defense, and the rest of it from other intelligence agencies and commercial enterprises in the United States.
Executives
John C Inglis director 605 HILLSMERE DRIVE, ANNAPOLIS MD 21403
Shephard W Hill director C/O THE KEYW HOLDING CORPORATION, 7440 MILESTONE PARKWAY, SUITE 400, HANOVER MD 21076
Mark W Sopp director 601 JEFFERSON STREET, SUITE 3400, HOUSTON TX 77002
William I Campbell director 270 PARK AVENUE, NEW YORK NY 10017
Arthur L Money director 2 S. BISCAYNE BLVD., SUITE 2800, MIAMI FL 33131
Kenneth A Minihan director
Randall M Griffin director
Parag Saxena 10 percent owner 250 WEST 55TH STREET, SUITE 13D, NEW YORK NY 10019