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Direcional Engenharia (BSP:DIRR3) Gross Margin % : 35.94% (As of Mar. 2024)


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What is Direcional Engenharia Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Direcional Engenharia's Gross Profit for the three months ended in Mar. 2024 was R$241 Mil. Direcional Engenharia's Revenue for the three months ended in Mar. 2024 was R$669 Mil. Therefore, Direcional Engenharia's Gross Margin % for the quarter that ended in Mar. 2024 was 35.94%.


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

BSP:DIRR3' s Gross Margin % Range Over the Past 10 Years
Min: 4.98   Med: 30.43   Max: 35.47
Current: 34.36


During the past 13 years, the highest Gross Margin % of Direcional Engenharia was 35.47%. The lowest was 4.98%. And the median was 30.43%.

BSP:DIRR3's Gross Margin % is ranked worse than
52.9% of 1656 companies
in the Real Estate industry
Industry Median: 36.73 vs BSP:DIRR3: 34.36

Direcional Engenharia had a gross margin of 35.94% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Direcional Engenharia was 3.50% per year.


Direcional Engenharia Gross Margin % Historical Data

The historical data trend for Direcional Engenharia'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.

Direcional Engenharia Gross Margin % Chart

Direcional Engenharia 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 33.68 34.82 35.47 33.93 34.18

Direcional Engenharia Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 35.50 33.89 34.50 33.01 35.94

Competitive Comparison of Direcional Engenharia's Gross Margin %

For the Real Estate - Development subindustry, Direcional Engenharia'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.


Direcional Engenharia's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Direcional Engenharia's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Direcional Engenharia's Gross Margin % falls into.



Direcional Engenharia Gross Margin % Calculation

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

Direcional Engenharia'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 )
=805 / 2355.183
=(Revenue - Cost of Goods Sold) / Revenue
=(2355.183 - 1550.208) / 2355.183
=34.18 %

Direcional Engenharia's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=240.6 / 669.442
=(Revenue - Cost of Goods Sold) / Revenue
=(669.442 - 428.84) / 669.442
=35.94 %

* 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.


Direcional Engenharia  (BSP:DIRR3) 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

Direcional Engenharia had a gross margin of 35.94% 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.


Direcional Engenharia Gross Margin % Related Terms

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Direcional Engenharia (BSP:DIRR3) Business Description

Traded in Other Exchanges
N/A
Address
Rua dos Otoni, 177, Bairro Santa Efigenia, Belo Horizonte, MG, BRA, 30150-270
Direcional Engenharia SA is a real estate development and construction company. It focuses on the development of large-scale residential housing targeting the low-income segment, particularly in the North and Mid-West regions of Brazil. Geographically, the business presence of the firm are seen in the states of Rio de Janeiro, Sao Paulo, the Rio Grande do Sul, Minas Gerais, Para, and Amazonas, among others.

Direcional Engenharia (BSP:DIRR3) Headlines

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