Gross Margin % is calculated as gross profit divided by its revenue. Stagwell's Gross Profit for the
three
months ended in Mar. 2024 was $226 Mil. Stagwell's Revenue for the
three
months ended in Mar. 2024 was $670 Mil. Therefore, Stagwell's Gross Margin % for the quarter that ended in Mar. 2024 was 33.66%.
The historical rank and industry rank for Stagwell's Gross Margin % or its related term are showing as below:
STGW'
s Gross Margin % Range Over the Past 10 Years
Min: 35.63 Med: 37.73 Max: 40.15
Current: 35.85
During the past 5 years, the highestGross Margin % of Stagwell was 40.15%. The lowest was 35.63%. And the median was 37.73%.
STGW's Gross Margin % is ranked worse than 53.37% of 965
companies
in the Media - Diversified industry
Industry Median: 38.36
vs STGW: 35.85
Stagwell had a gross margin of 33.66% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Stagwell was 0.00% per year.
Stagwell Gross Margin % Historical Data
The historical data trend for Stagwell'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 Stagwell's Gross Margin %
For the Advertising Agencies subindustry, Stagwell'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.
Stagwell's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Stagwell's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Stagwell'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.
Stagwell (NAS:STGW) 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
Stagwell had a gross margin of 33.66% 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.
Stagwell Gross Margin % Related Terms
Thank you for viewing the detailed overview of Stagwell's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Stagwell Inc is the challenger holding company built to transform marketing. It delivers scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. The company's segments include Integrated Agencies Network; Brand Performance Network; Communications Network and other. It generates maximum revenue from the Integrated Agencies Network segment. Geographically, it derives a majority of its revenue from the United States.
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