Gross Margin % is calculated as gross profit divided by its revenue. Stamps.com's Gross Profit for the
three
months ended in Jun. 2021 was $148.4 Mil. Stamps.com's Revenue for the
three
months ended in Jun. 2021 was $191.1 Mil. Therefore, Stamps.com's Gross Margin % for the quarter that ended in Jun. 2021 was 77.67%.
Warning Sign:
Stamps.com Inc gross margin has been in long term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Stamps.com's Gross Margin % or its related term are showing as below:
STMP'
s Gross Margin % Range Over the Past 10 Years
Min: 72.86 Med: 78.02 Max: 83.1
Current: 77.37
During the past 13 years, the highestGross Margin % of Stamps.com was 83.10%. The lowest was 72.86%. And the median was 78.02%.
STMP's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.71
vs STMP: 77.37
Stamps.com had a gross margin of 77.67% for the quarter that ended in Jun. 2021 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Stamps.com was -1.80% per year.
Stamps.com Gross Margin % Historical Data
The historical data trend for Stamps.com'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.
Competitive Comparison of Stamps.com's Gross Margin %
For the Software - Application subindustry, Stamps.com'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.
Stamps.com's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Stamps.com's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Stamps.com'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.
Stamps.com (NAS:STMP) 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
Stamps.com had a gross margin of 77.67% for the quarter that ended in Jun. 2021 => Durable competitive advantage
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.
Stamps.com Gross Margin % Related Terms
Thank you for viewing the detailed overview of Stamps.com's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Stamps.com Inc is a provider of Internet-based mailing and shipping solutions. The company's operating segments are Stamps.com and MetaPack. The Stamps.com segment makes up more than 90% of the company's revenue. This segment derives revenue from online postage and shipping software solutions offered to consumers, small businesses, e-commerce shippers, enterprise mailers, and high volume shippers. Stamps.com's customers are primarily located in the U.S. MetaPack derives revenue from multi-carrier enterprise-level shipping software solutions for large e-commerce retailers and brands. MetaPack's customers are primarily located outside the U.S.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
STMP has been successfully added to your 