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Hampton Financial (TSXV:HFC) Gross Margin % : 10.23% (As of Nov. 2023)


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What is Hampton Financial Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hampton Financial's Gross Profit for the three months ended in Nov. 2023 was C$0.13 Mil. Hampton Financial's Revenue for the three months ended in Nov. 2023 was C$1.23 Mil. Therefore, Hampton Financial's Gross Margin % for the quarter that ended in Nov. 2023 was 10.23%.

Warning Sign:

Hampton Financial Corp gross margin has been in long-term decline. The average rate of decline per year is -30.8%.


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

TSXV:HFC' s Gross Margin % Range Over the Past 10 Years
Min: 0.54   Med: 15.67   Max: 34.15
Current: 13.06


During the past 9 years, the highest Gross Margin % of Hampton Financial was 34.15%. The lowest was 0.54%. And the median was 15.67%.

TSXV:HFC's Gross Margin % is ranked worse than
76.53% of 605 companies
in the Capital Markets industry
Industry Median: 48.7 vs TSXV:HFC: 13.06

Hampton Financial had a gross margin of 10.23% for the quarter that ended in Nov. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hampton Financial was -30.80% per year.


Hampton Financial Gross Margin % Historical Data

The historical data trend for Hampton Financial'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.

Hampton Financial Gross Margin % Chart

Hampton Financial Annual Data
Trend Jun15 Jun16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 15.67 8.64 32.84 34.15 0.54

Hampton Financial Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
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 -4.04 -24.45 -35.05 54.20 10.23

Competitive Comparison of Hampton Financial's Gross Margin %

For the Capital Markets subindustry, Hampton Financial'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.


Hampton Financial's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Hampton Financial's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hampton Financial's Gross Margin % falls into.



Hampton Financial Gross Margin % Calculation

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

Hampton Financial's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )=Gross Profit (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=0 / 6.076
=(Revenue - Cost of Goods Sold) / Revenue
=(6.076 - 6.043) / 6.076
=0.54 %

Hampton Financial's Gross Margin for the quarter that ended in Nov. 2023 is calculated as


Gross Margin % (Q: Nov. 2023 )=Gross Profit (Q: Nov. 2023 ) / Revenue (Q: Nov. 2023 )
=0.1 / 1.232
=(Revenue - Cost of Goods Sold) / Revenue
=(1.232 - 1.106) / 1.232
=10.23 %

* 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.


Hampton Financial  (TSXV:HFC) 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

Hampton Financial had a gross margin of 10.23% for the quarter that ended in Nov. 2023 => No sustainable 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.


Hampton Financial Gross Margin % Related Terms

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


Hampton Financial (TSXV:HFC) Business Description

Traded in Other Exchanges
N/A
Address
141 Adelaide Street West, Suite 1800, Toronto, ON, CAN, M5H 3L5
Hampton Financial Corp along with its subsidiaries operates as an investment dealer and provides investment advisory and brokerage services. It also offers wealth management services to retail and institutional clients. In addition, the company provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on a recognized securities exchange in Canada. The Company operates in only one business segment, namely investment advisory and brokerage services.

Hampton Financial (TSXV:HFC) Headlines

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