SenseTime Group Inc gross margin has been in long-term decline. The average rate of decline per year is -2.2%.
The historical rank and industry rank for SenseTime Group's Gross Margin % or its related term are showing as below:
SNTMF'
s Gross Margin % Range Over the Past 10 Years
Min: 44.07 Med: 61.78 Max: 70.57
Current: 44.07
During the past 6 years, the highestGross Margin % of SenseTime Group was 70.57%. The lowest was 44.07%. And the median was 61.78%.
SNTMF's Gross Margin % is ranked better than 52.64% of 2635
companies
in the Software industry
Industry Median: 41.74
vs SNTMF: 44.07
SenseTime Group had a gross margin of 43.19% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SenseTime Group was -2.20% per year.
SenseTime Group Gross Margin % Historical Data
The historical data trend for SenseTime Group'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 SenseTime Group's Gross Margin %
For the Software - Application subindustry, SenseTime Group'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.
SenseTime Group's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, SenseTime Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SenseTime Group'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.
SenseTime Group (OTCPK:SNTMF) 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
SenseTime Group had a gross margin of 43.19% for the quarter that ended in Dec. 2023 => Durable 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.
SenseTime Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of SenseTime Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SenseTime Group (SenseTime Group) Business Description
SenseTime Group Inc is a software company focused on creating an AI-empowered future through innovation. The Company develops software & hardware products for different industry verticals and use cases based on the same AI infrastructure platform & model training framework. The principal activities of the Group are the sale of advanced AI software, the sale of AI software platform & related services, the sale of AI software-embedded hardware and related services, AIDC service as well as research and development activities in relation to AI technologyThe Company is domiciled in the Cayman Islands while the Group mainly operates its businesses in four geographical areas of the world Mainland China, Northeast Asia, Southeast Asia, and others, out of which the majority is from Mainland China.
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