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Optex Systems Holdings (Optex Systems Holdings) Gross Margin % : 24.17% (As of Dec. 2023)


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What is Optex Systems Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Optex Systems Holdings's Gross Profit for the three months ended in Dec. 2023 was $1.68 Mil. Optex Systems Holdings's Revenue for the three months ended in Dec. 2023 was $6.97 Mil. Therefore, Optex Systems Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 24.17%.


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

OPXS' s Gross Margin % Range Over the Past 10 Years
Min: 10.66   Med: 20.03   Max: 26.53
Current: 26.53


During the past 13 years, the highest Gross Margin % of Optex Systems Holdings was 26.53%. The lowest was 10.66%. And the median was 20.03%.

OPXS's Gross Margin % is ranked better than
52.36% of 296 companies
in the Aerospace & Defense industry
Industry Median: 26.025 vs OPXS: 26.53

Optex Systems Holdings had a gross margin of 24.17% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Optex Systems Holdings was -0.30% per year.


Optex Systems Holdings Gross Margin % Historical Data

The historical data trend for Optex Systems Holdings'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.

Optex Systems Holdings Gross Margin % Chart

Optex Systems Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.49 23.51 13.83 21.88 25.80

Optex Systems Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 17.75 24.38 23.87 32.64 24.17

Competitive Comparison of Optex Systems Holdings's Gross Margin %

For the Aerospace & Defense subindustry, Optex Systems Holdings'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.


Optex Systems Holdings's Gross Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Optex Systems Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Optex Systems Holdings's Gross Margin % falls into.



Optex Systems Holdings Gross Margin % Calculation

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

Optex Systems Holdings's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=6.6 / 25.659
=(Revenue - Cost of Goods Sold) / Revenue
=(25.659 - 19.04) / 25.659
=25.80 %

Optex Systems Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1.7 / 6.968
=(Revenue - Cost of Goods Sold) / Revenue
=(6.968 - 5.284) / 6.968
=24.17 %

* 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.


Optex Systems Holdings  (NAS:OPXS) 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

Optex Systems Holdings had a gross margin of 24.17% for the quarter that ended in Dec. 2023 => 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.


Optex Systems Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Optex Systems Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Optex Systems Holdings (Optex Systems Holdings) Business Description

Traded in Other Exchanges
Address
1420 Presidential Drive, Richardson, TX, USA, 75081-2439
Optex Systems Holdings Inc manufactures optical sighting systems and assemblies for the U.S. Department of Defense, foreign military applications, and commercial markets. Its products are installed on a variety of United States military land vehicles, such as the Abrams and Bradley fighting vehicles, and light armored and security vehicles, and have been selected for installation on the Stryker family of vehicles. The company's operating segment includes Optex Richardson and Applied Optics Center Dallas. It generates maximum revenue from the Applied Optics Center Dallas segment. Some of its products include M17 Day/Thermal Periscope; DDAN / M36 Sights; Laser Protected Periscopes; Muzzle Reference Sensor and others.
Executives
Topline Capital Partners, Lp 10 percent owner 544 EUCLID STREET, SANTA MONICA CA 90402
Topline Capital Management, Llc other: See Explanation in Footnotes 544 EUCLID STREET, SANTA MONICA CA 90402
Mcbirney Collin other: See Explanation in Footnotes 544 EUCLID STREET, SANTA MONICA CA 90402
Judd Dayton 10 percent owner 878 S. DENTON TAP RD., SUITE 220, COPPELL TX 75019
Dale E Lehmann director 3342 REILY MILLVILLE RD, HAMILTON OH 45013
R. Rimmy Malhotra director C/O COMMAND CENTER, INC., 3609 S WADSWORTH BLVD., SUITE 250, LAKEWOOD CO 80235
Lawrence F Hagenbuch director 600 CORPORATION DRIVE, PENDLETON IN 46064
Karen Lea Hawkins officer: VP Finance and Controller 1420 PRESIDENTIAL DRIVE, RICHARDSON TX 75081
Ephraim G Fields 10 percent owner 265 EAST 66TH STREET, #41A, NEW YORK NY 10065
Danny Robert Schoening 10 percent owner, officer: COO 1420 PRESIDENTIAL DRIVE, RICHARDSON TX 75081
Longview Fund Lp 10 percent owner VIKING ASSET MANAGEMENT LLC, 66 BOVET ROAD, SUITE 320, SAN MATEO, CA 94402
Merrick D Okamoto director 1180 NORTH TOWN CENTER DRIVE, SUITE 100,, LAS VEGAS NV 89144
Stanley A Hirschman director, 10 percent owner, officer: Pres., Secretary and Treasurer
Ronald F Richards director