$NEN Insights BETA

Expenses

Gross Profit Margin is relatively consistent.
Avg. Gross Profit Margin is ≈59.5%, which is pretty good. It would be ideal if it were above 60%.

SGA is relatively consistent
Avg. SGA is ≈13.7% of Gross Profits, which is great. R&D and Interest Expense should be checked to ensure the good economics isn't getting destroyed through a different mechanism.

The tax rate (Income Tax Paid / Pretax Income) is 0.0% on average, which is well below the 21% corporate tax rate. It might be worth trying to understand what's going on.
Net Income is relatively inconsistent. When Net Income is inconsistent, it's hard to determine a value of the company you can feel confident in.
Net Income / Total Revenues is 6.66% on average. It's bad sign when it's below 10%. When comparing with competitors, the company with the highest ratio will likely be the one with the competitive advantage.

Company's without competitive advantage have an ever increasing amount of PPE, which is going also be accompanied by increasing Depreciation expenses. This is a bad because it eats into the profits of the company and indicates that the company likely needs to continuously reinvent their products. This could indicate they are facing fierce competition and a lack of a competitive advantage. It’s particularly worse if the increases in PPE investments are done using debt, rather than internal sources so check debt growth.