Market Cap : 3.57 B | Enterprise Value : 3.57 B | P/E (TTM) : | P/B : 7.94 |
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Gross Margin % is calculated as gross profit divided by its revenue. 3D Systems's Gross Profit for the three months ended in Sep. 2020 was $58.6 Mil. 3D Systems's Revenue for the three months ended in Sep. 2020 was $135.1 Mil. Therefore, 3D Systems's Gross Margin % for the quarter that ended in Sep. 2020 was 43.38%.
During the past 13 years, the highest Gross Margin % of 3D Systems was 52.12%. The lowest was 40.75%. And the median was 47.25%.
NYSE:DDD's Gross Margin % is ranked higher than3D Systems had a gross margin of 43.38% for the quarter that ended in Sep. 2020 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for 3D Systems was -0.80% per year.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where 3D Systems's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
3D Systems's Gross Margin for the fiscal year that ended in Dec. 2019 is calculated as
Gross Margin % (A: Dec. 2019 ) | = | Gross Profit (A: Dec. 2019 ) | / | Revenue (A: Dec. 2019 ) |
= | 278 | / | 629.094 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (629.094 - 351.053) | / | 629.094 | |
= | 44.20 % |
3D Systems's Gross Margin for the quarter that ended in Sep. 2020 is calculated as
Gross Margin % (Q: Sep. 2020 ) | = | Gross Profit (Q: Sep. 2020 ) | / | Revenue (Q: Sep. 2020 ) |
= | 58.6 | / | 135.147 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (135.147 - 76.52) | / | 135.147 | |
= | 43.38 % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.
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
3D Systems had a gross margin of 43.38% for the quarter that ended in Sep. 2020 => Durable competitive advantage
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.
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