Gross Margin % is calculated as gross profit divided by its revenue. VerifyMe's Gross Profit for the
three
months ended in Mar. 2024 was $2.26 Mil. VerifyMe's Revenue for the
three
months ended in Mar. 2024 was $5.76 Mil. Therefore, VerifyMe's Gross Margin % for the quarter that ended in Mar. 2024 was 39.24%.
Warning Sign:
VerifyMe Inc gross margin has been in long-term decline. The average rate of decline per year is -14.8%.
The historical rank and industry rank for VerifyMe's Gross Margin % or its related term are showing as below:
VRME'
s Gross Margin % Range Over the Past 10 Years
Min: 9.6 Med: 61.33 Max: 81.92
Current: 37.42
During the past 13 years, the highestGross Margin % of VerifyMe was 81.92%. The lowest was 9.60%. And the median was 61.33%.
VRME's Gross Margin % is ranked better than 54.2% of 987
companies
in the Business Services industry
Industry Median: 34.38
vs VRME: 37.42
VerifyMe had a gross margin of 39.24% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for VerifyMe was -14.80% per year.
VerifyMe Gross Margin % Historical Data
The historical data trend for VerifyMe'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 VerifyMe's Gross Margin %
For the Security & Protection Services subindustry, VerifyMe'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.
VerifyMe's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, VerifyMe's Gross Margin % distribution charts can be found below:
* The bar in red indicates where VerifyMe'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.
VerifyMe (NAS:VRME) 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
VerifyMe had a gross margin of 39.24% 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.
VerifyMe Gross Margin % Related Terms
Thank you for viewing the detailed overview of VerifyMe's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
VerifyMe Inc is a technology solutions company based in the United States. It markets a broad patent portfolio that includes patents in the field of authenticating products, people, and financial transactions. In the areas of authentication and serialization of physical goods, the company offers clients the following products as anti-counterfeit systems: RainbowSecure, VeriPAS supply chain serialization, track, and trace technology; VeriPAS Smartphone Authenticator; VerifyMe Beeper; VerifyMe Web. The company serves a diverse set of markets including pharmaceutical companies, high-end retailers, the gaming industry, and governments worldwide.
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