Sterling Check (Sterling Check) Gross Margin % : 44.06% (As of Mar. 2024)

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What is Sterling Check Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sterling Check's Gross Profit for the three months ended in Mar. 2024 was $82.0 Mil. Sterling Check's Revenue for the three months ended in Mar. 2024 was $186.0 Mil. Therefore, Sterling Check's Gross Margin % for the quarter that ended in Mar. 2024 was 44.06%.

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

STER' s Gross Margin % Range Over the Past 10 Years
Min: 39.65 Med: 42.38 Max: 55.47
Current: 39.65

During the past 5 years, the highest Gross Margin % of Sterling Check was 55.47%. The lowest was 39.65%. And the median was 42.38%.

STER's Gross Margin % is ranked worse than
52.98% of 2631 companies
in the Software industry
Industry Median: 41.74 vs STER: 39.65

Sterling Check had a gross margin of 44.06% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sterling Check was 0.00% per year.

Sterling Check Gross Margin % Historical Data

The historical data trend for Sterling Check'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.

Sterling Check Gross Margin % Chart

Sterling Check Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

55.47

42.38

44.31

40.25

40.38

Sterling Check Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial												47.15	46.39	46.90	19.50	44.06

Competitive Comparison of Sterling Check's Gross Margin %

For the Software - Infrastructure subindustry, Sterling Check'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.

Sterling Check's Gross Margin % Distribution in the Software Industry

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

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

Sterling Check Gross Margin % Calculation

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

Sterling Check'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 )
	=	290.6	/	719.64
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(719.64 - 429.068)	/	719.64
	=	40.38 %

Sterling Check's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	82	/	185.999
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(185.999 - 104.041)	/	185.999
	=	44.06 %

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.

Sterling Check (NAS:STER) 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

Sterling Check had a gross margin of 44.06% for the quarter that ended in Mar. 2024 => 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.

Sterling Check Gross Margin % Related Terms

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Sterling Check (Sterling Check) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Sterling Check Corp (NAS:STER) » Definitions » Gross Margin %

Comparable Companies

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Traded in Other Exchanges

N/A

Address

1 State Street Plaza, 24th Floor, New York, NY, USA, 10004

Website

https://www.sterlingcheck.com

Sterling Check Corp is a global provider of technology-enabled background and identity verification services. It offers a hiring and risk management solution that begins with identity verification, followed by criminal background screening, credential verification, drug and health screening, processing of employee documentation required for onboarding, and ongoing risk monitoring. Its services are delivered through a purpose-built, proprietary, cloud-based technology platform that empowers organizations with real-time and data-driven insights to conduct and manage their employment screening programs.

Executives

Goldman Sachs Group Inc	10 percent owner	200 WEST STREET, NEW YORK NY 10282
Adrian M Jones	director	C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Steven L Barnett	officer: See Remarks	6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Kristin Ann Johnsen	director	6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Villon Bertrand Eric Arnaud	director	STERLING CHECK CORP, 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
L Frederick Sutherland	director	STERLING CHECKCORP INC., 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Stonehill Robyn Price	officer: See Remarks	STERLING CHECKCORP INC., 1 STATE STREET PLAZA, NEW YORK NY 10004
Crampton Christopher A.s.	director	85 BROAD STREET, NEW YORK NY 10004
William W Chen	director	STERLING ULTIMATE PARENT CORP., 1 STATE STREET PLAZA, 24TH FLOOR, NEW YORK NY 10004
Mohit Kapoor	director	6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Goldman Sachs & Co. Llc	10 percent owner	200 WEST STREET, NEW YORK NY 10282
Ross M Cummings	10 percent owner	STERLING ULTIMATE PARENT CORP., 1 STATE STREET PLAZA, 24TH FLOOR, NEW YORK NY 10004
Broad Street Control Advisors, L.l.c.	10 percent owner	200 WEST STREET, NEW YORK NY 10282
Peter Walker	officer: See Remarks	STERLING CHECKCORP INC., 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131
Lou Paglia	officer: See Remarks	STERLING CHECKCORP INC, 6150 OAK TREE BOULEVARD, SUITE 490, INDEPENDENCE OH 44131