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Sapiens International NV (Sapiens International NV) Gross Margin % : 42.76% (As of Dec. 2023)


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What is Sapiens International NV Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sapiens International NV's Gross Profit for the three months ended in Dec. 2023 was $55.9 Mil. Sapiens International NV's Revenue for the three months ended in Dec. 2023 was $130.9 Mil. Therefore, Sapiens International NV's Gross Margin % for the quarter that ended in Dec. 2023 was 42.76%.


The historical rank and industry rank for Sapiens International NV's Gross Margin % or its related term are showing as below:

SPNS' s Gross Margin % Range Over the Past 10 Years
Min: 34.74   Med: 39.94   Max: 42.67
Current: 42.67


During the past 13 years, the highest Gross Margin % of Sapiens International NV was 42.67%. The lowest was 34.74%. And the median was 39.94%.

SPNS's Gross Margin % is ranked better than
51.26% of 2628 companies
in the Software industry
Industry Median: 41.73 vs SPNS: 42.67

Sapiens International NV had a gross margin of 42.76% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sapiens International NV was 2.30% per year.


Sapiens International NV Gross Margin % Historical Data

The historical data trend for Sapiens International NV'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.

Sapiens International NV Gross Margin % Chart

Sapiens International NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.77 40.73 40.74 42.16 42.67

Sapiens International NV 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 42.11 42.52 42.61 42.81 42.76

Competitive Comparison of Sapiens International NV's Gross Margin %

For the Software - Application subindustry, Sapiens International NV'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.


Sapiens International NV's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Sapiens International NV's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sapiens International NV's Gross Margin % falls into.



Sapiens International NV Gross Margin % Calculation

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

Sapiens International NV's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=219.6 / 514.584
=(Revenue - Cost of Goods Sold) / Revenue
=(514.584 - 294.99) / 514.584
=42.67 %

Sapiens International NV'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 )
=55.9 / 130.859
=(Revenue - Cost of Goods Sold) / Revenue
=(130.859 - 74.91) / 130.859
=42.76 %

* 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.


Sapiens International NV  (NAS:SPNS) 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

Sapiens International NV had a gross margin of 42.76% 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.


Sapiens International NV Gross Margin % Related Terms

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Sapiens International NV (Sapiens International NV) Business Description

Traded in Other Exchanges
Address
26 Harokmim Street, Azrieli Center, Holon, ISR, 5885800
Sapiens International Corp NV is a provider of software solutions for the insurance industry, with an emerging focus on the financial services sector. The company offers software, solutions and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&A); workers' compensation (WC); medical professional liability (MPL); financial & compliance (F&C); and decision modelling for both insurance and financial markets. The group also provides services for project delivery and implementation services, for its Software Solutions portfolio. Geographically, it operates in the region of North America, United Kingdom, Israel, and other European countries and Rest of the World and derives the majority of its income from North American region.