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Move (FRA:HMZN) Gross Margin % : 78.38% (As of Sep. 2014)


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What is Move Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Move's Gross Profit for the three months ended in Sep. 2014 was €38.9 Mil. Move's Revenue for the three months ended in Sep. 2014 was €49.6 Mil. Therefore, Move's Gross Margin % for the quarter that ended in Sep. 2014 was 78.38%.


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

FRA:HMZN' s Gross Margin % Range Over the Past 10 Years
Min: 63.67   Med: 77.51   Max: 80.98
Current: 79.09


During the past 13 years, the highest Gross Margin % of Move was 80.98%. The lowest was 63.67%. And the median was 77.51%.

FRA:HMZN's Gross Margin % is not ranked
in the Interactive Media industry.
Industry Median: 60.98 vs FRA:HMZN: 79.09

Move had a gross margin of 78.38% for the quarter that ended in Sep. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Move was 0.10% per year.


Move Gross Margin % Historical Data

The historical data trend for Move'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.

Move Gross Margin % Chart

Move Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 77.12 78.17 78.94 79.21 79.80

Move Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 80.03 79.70 79.12 79.24 78.38

Competitive Comparison of Move's Gross Margin %

For the Internet Content & Information subindustry, Move'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.


Move's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Move's Gross Margin % distribution charts can be found below:

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



Move Gross Margin % Calculation

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

Move's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=132.3 / 165.734
=(Revenue - Cost of Goods Sold) / Revenue
=(165.734 - 33.484) / 165.734
=79.80 %

Move's Gross Margin for the quarter that ended in Sep. 2014 is calculated as


Gross Margin % (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=38.9 / 49.574
=(Revenue - Cost of Goods Sold) / Revenue
=(49.574 - 10.717) / 49.574
=78.38 %

* 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.


Move  (FRA:HMZN) 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

Move had a gross margin of 78.38% for the quarter that ended in Sep. 2014 => 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.


Move Gross Margin % Related Terms

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Move (FRA:HMZN) Business Description

Traded in Other Exchanges
N/A
Address
Move, Inc. was incorporated in the State of Delaware in 1993 under the name of InfoTouch Corporation. The Company and its subsidiaries operate an online network of websites for real estate information marketplace connecting consumers with the information and the expertise they need to make informed home buying, selling, financing and renting decisions. It provides consumers with a powerful combination of breadth, depth and accuracy of information about homes for sale, new construction, homes for rent, multi-family rental properties, senior living communities, home financing, home improvement and moving resources. Its flagship consumer web sites are REALTOR.com, Move.com and Moving.comTM. The Company also supplies management software and marketing services for real estate agents and brokers through its Top Producer and TigerLead businesses. The Company categorizes its products and services into two groups: Consumer Advertising and Software and Services. The Company's Consumer Advertising products are focused on providing real estate consumers with the information, tools and professional expertise they need to make informed home buying, selling, financing and renting decisions through its operation of realtor.com and other consumer-facing web sites. Realtor.com is the official web site of the National Association of Realtors (the "NAR"), the largest trade association in the U.S. that represents residential and commercial real estate professionals, including brokers, agents, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry. The Company's Software and Services products are committed to delivering valuable connections to real estate professionals by providing them with advertising systems, productivity and management tools, and reporting with the goal of helping to make them more successful. It separately operates several other websites providing single family and multi-family rental listings, senior housing and moving-related content and services to its consumer audience. Realtor.com competes in a highly fragmented and highly complex local real estate marketplace. Competition within realtor.com falls into two general categories: (i) online real estate media companies; and (ii) offline advertising offerings, including newspaper classifieds, direct mail and other traditional offline media. The Company has nine patents issued in the U.S.

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