Media Five Co (FSE:3824) Gross Margin % : 35.12% (As of Feb. 2024)

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What is Media Five Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Media Five Co's Gross Profit for the three months ended in Feb. 2024 was 円161 Mil. Media Five Co's Revenue for the three months ended in Feb. 2024 was 円458 Mil. Therefore, Media Five Co's Gross Margin % for the quarter that ended in Feb. 2024 was 35.12%.

Warning Sign:

Media Five Co gross margin has been in long-term decline. The average rate of decline per year is -2.4%.

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

FSE:3824' s Gross Margin % Range Over the Past 10 Years
Min: 32.01 Med: 36.73 Max: 39.12
Current: 36.26

During the past 11 years, the highest Gross Margin % of Media Five Co was 39.12%. The lowest was 32.01%. And the median was 36.73%.

FSE:3824's Gross Margin % is ranked worse than
57.14% of 2641 companies
in the Software industry
Industry Median: 41.84 vs FSE:3824: 36.26

Media Five Co had a gross margin of 35.12% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Media Five Co was -2.40% per year.

Media Five Co Gross Margin % Historical Data

The historical data trend for Media Five Co'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.

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Media Five Co Gross Margin % Chart

Media Five Co Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Gross Margin %

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37.43

34.20

32.01

35.67

Media Five Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Gross Margin %	Get a 7-Day Free Trial															36.28	38.23	36.52	35.20	35.12

Competitive Comparison of Media Five Co's Gross Margin %

For the Information Technology Services subindustry, Media Five Co'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.

Media Five Co's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Media Five Co's Gross Margin % falls into.

Media Five Co Gross Margin % Calculation

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

Media Five Co's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )	=	Gross Profit (A: May. 2023 )	/	Revenue (A: May. 2023 )
	=	623.4	/	1747.502
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1747.502 - 1124.152)	/	1747.502
	=	35.67 %

Media Five Co's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

Gross Margin % (Q: Feb. 2024 )	=	Gross Profit (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	160.8	/	457.792
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(457.792 - 297.016)	/	457.792
	=	35.12 %

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.

Media Five Co (FSE:3824) 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

Media Five Co had a gross margin of 35.12% for the quarter that ended in Feb. 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.

Media Five Co Gross Margin % Related Terms

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Media Five Co (FSE:3824) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Media Five Co (FSE:3824) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Fukuoka Prefecture, Chuo-ku, Fukuoka Yakuin 1 Chome, Yakuin Business Garden, sixth floor, Yubinbango, Fukuoka-City, JPN, 810-0022

Website

http://www.media5.co.jp

Media Five Co is a Japanese firm engaged in the provision of software development-related information technology (IT) engineers to computer companies. It develops customized system integration software, including sales management system for cram schools. It also has restaurant and childcare services business.

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