Smiths News (Smiths News) Gross Margin % : 6.42% (As of Aug. 2023)

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What is Smiths News Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Smiths News's Gross Profit for the six months ended in Aug. 2023 was $44 Mil. Smiths News's Revenue for the six months ended in Aug. 2023 was $688 Mil. Therefore, Smiths News's Gross Margin % for the quarter that ended in Aug. 2023 was 6.42%.

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

SMWPY' s Gross Margin % Range Over the Past 10 Years
Min: 6.26 Med: 6.66 Max: 16.63
Current: 6.64

During the past 13 years, the highest Gross Margin % of Smiths News was 16.63%. The lowest was 6.26%. And the median was 6.66%.

SMWPY's Gross Margin % is ranked worse than
92.53% of 964 companies
in the Media - Diversified industry
Industry Median: 38.5 vs SMWPY: 6.64

Smiths News had a gross margin of 6.42% for the quarter that ended in Aug. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Smiths News was 0.40% per year.

Smiths News Gross Margin % Historical Data

The historical data trend for Smiths News'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.

Smiths News Gross Margin % Chart

Smiths News Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Gross Margin %

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6.59

6.26

6.61

6.67

6.64

Smiths News Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Gross Margin %	Get a 7-Day Free Trial															6.76	6.75	6.59	6.85	6.42

Competitive Comparison of Smiths News's Gross Margin %

For the Publishing subindustry, Smiths News'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.

Smiths News's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Smiths News's Gross Margin % distribution charts can be found below:

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

Smiths News Gross Margin % Calculation

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

Smiths News's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )	=	Gross Profit (A: Aug. 2023 )	/	Revenue (A: Aug. 2023 )
	=	92.1	/	1387.421
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1387.421 - 1295.299)	/	1387.421
	=	6.64 %

Smiths News's Gross Margin for the quarter that ended in Aug. 2023 is calculated as

Gross Margin % (Q: Aug. 2023 )	=	Gross Profit (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	44.2	/	688.437
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(688.437 - 644.218)	/	688.437
	=	6.42 %

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.

Smiths News (OTCPK:SMWPY) 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

Smiths News had a gross margin of 6.42% for the quarter that ended in Aug. 2023 => No sustainable 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.

Smiths News Gross Margin % Related Terms

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Smiths News (Smiths News) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Smiths News PLC (OTCPK:SMWPY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SNWSl:UK CNCT.GB:UK SNWS:UK T6N:Germany

Address

Rowan House, Cherry Orchard North, Kembrey Park, Swindon, Wiltshire, GBR, SN2 8UH

Website

https://www.smithsnews.co.uk

Smiths News PLC is a UK-based wholesale distributor of published content. The group is one of the UK's foremost publishers of newspapers and magazines, and it also operates as a book distributor through bookstores and an online platform serving the needs of academics and public libraries. Geographically, it derives a majority of revenue from the United Kingdom. Its segments include Smiths News Core; Dawson Media Direct (DMD); Instore and others.