Gross Margin % is calculated as gross profit divided by its revenue. Personalis's Gross Profit for the
three
months ended in Mar. 2024 was $5.49 Mil. Personalis's Revenue for the
three
months ended in Mar. 2024 was $19.53 Mil. Therefore, Personalis's Gross Margin % for the quarter that ended in Mar. 2024 was 28.13%.
Warning Sign:
Personalis Inc gross margin has been in long-term decline. The average rate of decline per year is -6.3%.
The historical rank and industry rank for Personalis's Gross Margin % or its related term are showing as below:
PSNL'
s Gross Margin % Range Over the Past 10 Years
Min: -24.94 Med: 25.57 Max: 37.03
Current: 25.59
During the past 7 years, the highestGross Margin % of Personalis was 37.03%. The lowest was -24.94%. And the median was 25.57%.
PSNL's Gross Margin % is ranked worse than 83.89% of 211
companies
in the Medical Diagnostics & Research industry
Industry Median: 45.55
vs PSNL: 25.59
Personalis had a gross margin of 28.13% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Personalis was -6.30% per year.
Personalis Gross Margin % Historical Data
The historical data trend for Personalis'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 Personalis's Gross Margin %
For the Diagnostics & Research subindustry, Personalis'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.
Personalis's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Personalis's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Personalis'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.
Personalis (NAS:PSNL) 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
Personalis had a gross margin of 28.13% 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.
Personalis Gross Margin % Related Terms
Thank you for viewing the detailed overview of Personalis's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Personalis Inc is a provider of genomic sequencing and analytics solutions to support the development of personalized cancer vaccines and other next-generation cancer immunotherapies. It has one segment, the sale of sequencing and data analysis services. Its products include ImmunoID NeXT, NeXT Liquid Biopsy, NeXT Dx Test, and other Pharma Research Solutions.
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