SThree (LSE:STEM) Gross Margin % : 25.08% (As of Nov. 2023)

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What is SThree Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SThree's Gross Profit for the six months ended in Nov. 2023 was £210 Mil. SThree's Revenue for the six months ended in Nov. 2023 was £838 Mil. Therefore, SThree's Gross Margin % for the quarter that ended in Nov. 2023 was 25.08%.

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

LSE:STEM' s Gross Margin % Range Over the Past 10 Years
Min: 25.18 Med: 26.04 Max: 29.22
Current: 25.18

During the past 13 years, the highest Gross Margin % of SThree was 29.22%. The lowest was 25.18%. And the median was 26.04%.

LSE:STEM's Gross Margin % is ranked worse than
65.99% of 988 companies
in the Business Services industry
Industry Median: 34.34 vs LSE:STEM: 25.18

SThree had a gross margin of 25.08% for the quarter that ended in Nov. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for SThree was 0.20% per year.

SThree Gross Margin % Historical Data

The historical data trend for SThree'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.

SThree Gross Margin % Chart

SThree Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Gross Margin %

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25.51

25.66

26.73

26.27

25.18

SThree Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Gross Margin %	Get a 7-Day Free Trial															26.75	26.29	26.24	25.28	25.08

Competitive Comparison of SThree's Gross Margin %

For the Staffing & Employment Services subindustry, SThree'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.

SThree's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, SThree's Gross Margin % distribution charts can be found below:

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

SThree Gross Margin % Calculation

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

SThree's Gross Margin for the fiscal year that ended in Nov. 2023 is calculated as

Gross Margin % (A: Nov. 2023 )	=	Gross Profit (A: Nov. 2023 )	/	Revenue (A: Nov. 2023 )
	=	418.8	/	1663.167
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1663.167 - 1244.392)	/	1663.167
	=	25.18 %

SThree'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 )
	=	210.2	/	837.956
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(837.956 - 627.772)	/	837.956
	=	25.08 %

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.

SThree (LSE:STEM) 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

SThree had a gross margin of 25.08% for the quarter that ended in Nov. 2023 => 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.

SThree Gross Margin % Related Terms

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SThree (LSE:STEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » SThree PLC (LSE:STEM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

STEMl:UK

Address

75 King William Street, 1st Floor, London, GBR, EC4N 7BE

Website

https://www.sthree.com

SThree PLC is involved in the staffing business. It provides contract and permanent recruitment services. The company operates in information and communication, engineering, energy, life sciences, banking, and finance sectors. It provides its service through various brands such as computer future, progressive, Huxley, real, orgtel, jpgray, Newington international and enterprise partners. The company operates in the UK, Ireland, Continental Europe, America, Asia Pacific and the Middle east.