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Profile Systems & Software (ATH:PROF) Gross Margin % : 49.15% (As of Dec. 2023)


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What is Profile Systems & Software Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Profile Systems & Software's Gross Profit for the six months ended in Dec. 2023 was €8.65 Mil. Profile Systems & Software's Revenue for the six months ended in Dec. 2023 was €17.59 Mil. Therefore, Profile Systems & Software's Gross Margin % for the quarter that ended in Dec. 2023 was 49.15%.

Warning Sign:

Profile Systems & Software SA gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


The historical rank and industry rank for Profile Systems & Software's Gross Margin % or its related term are showing as below:

ATH:PROF' s Gross Margin % Range Over the Past 10 Years
Min: 40.94   Med: 48.79   Max: 53.93
Current: 48.44


During the past 13 years, the highest Gross Margin % of Profile Systems & Software was 53.93%. The lowest was 40.94%. And the median was 48.79%.

ATH:PROF's Gross Margin % is ranked better than
57.24% of 2638 companies
in the Software industry
Industry Median: 41.845 vs ATH:PROF: 48.44

Profile Systems & Software had a gross margin of 49.15% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Profile Systems & Software was -1.60% per year.


Profile Systems & Software Gross Margin % Historical Data

The historical data trend for Profile Systems & Software'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.

Profile Systems & Software Gross Margin % Chart

Profile Systems & Software Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 53.93 53.87 49.89 46.81 48.44

Profile Systems & Software Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 49.13 46.16 47.26 47.43 49.15

Competitive Comparison of Profile Systems & Software's Gross Margin %

For the Software - Application subindustry, Profile Systems & Software'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.


Profile Systems & Software's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Profile Systems & Software's Gross Margin % falls into.



Profile Systems & Software Gross Margin % Calculation

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

Profile Systems & Software's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=14.6 / 30.098
=(Revenue - Cost of Goods Sold) / Revenue
=(30.098 - 15.52) / 30.098
=48.44 %

Profile Systems & Software's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=8.6 / 17.589
=(Revenue - Cost of Goods Sold) / Revenue
=(17.589 - 8.944) / 17.589
=49.15 %

* 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.


Profile Systems & Software  (ATH:PROF) 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

Profile Systems & Software had a gross margin of 49.15% for the quarter that ended in Dec. 2023 => 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.


Profile Systems & Software Gross Margin % Related Terms

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


Profile Systems & Software (ATH:PROF) Business Description

Traded in Other Exchanges
N/A
Address
199 Syngrou Ave. N. Smyrni, Athens, GRC, 17121
Profile Systems & Software SA is a software company developing solutions for the international financial sector, business sector and the public sector. Its products include Axia, IMSplus, FMS.next, FMS.next Payments, RiskAvert, Native Wealth Management Mobile App, GS Market Suite, Plexus, Registry and Nowen-net. The company offers services in the field of Investment Management, Banking, Risk and Compliance, Capital Markets and Marketplace Lending in Europe, Middle East Asia, America and Africa.