The historical rank and industry rank for Badger Meter's Gross Margin % or its related term are showing as below:
BMI'
s Gross Margin % Range Over the Past 10 Years
Min: 35.95 Med: 38.61 Max: 40.67
Current: 39.26
During the past 13 years, the highestGross Margin % of Badger Meter was 40.67%. The lowest was 35.95%. And the median was 38.61%.
BMI's Gross Margin % is ranked better than 76.57% of 2437
companies
in the Hardware industry
Industry Median: 24.45
vs BMI: 39.26
Badger Meter had a gross margin of 39.32% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Badger Meter was 0.90% per year.
Badger Meter Gross Margin % Historical Data
The historical data trend for Badger Meter'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 Badger Meter's Gross Margin %
For the Scientific & Technical Instruments subindustry, Badger Meter'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.
Badger Meter's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Badger Meter's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Badger Meter'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.
Badger Meter (NYSE:BMI) 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
Badger Meter had a gross margin of 39.32% for the quarter that ended in Mar. 2024 => 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.
Badger Meter Gross Margin % Related Terms
Thank you for viewing the detailed overview of Badger Meter's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Badger Meter Inc is an innovator, manufacturer, and marketer of products incorporating flow measurement, quality, control, and other system solutions serving markets. The company's products measure water, oil, chemicals, and other fluids, and provide and communicate timely measurement data. Badger's product lines include two categories: sales of water meters, radios, software, and related technologies, and water quality monitoring solutions to water utilities (utility water) and sales of meters and other sensing instruments, valves, software, and other solutions for industrial applications in water, wastewater, and other industries (flow instrumentation). It derives a majority of its revenues from the United States.
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