PVA TePla AG gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for PVA TePla AG's Gross Margin % or its related term are showing as below:
LTS:0NL1'
s Gross Margin % Range Over the Past 10 Years
Min: 19.23 Med: 28.78 Max: 32.09
Current: 29.42
During the past 13 years, the highestGross Margin % of PVA TePla AG was 32.09%. The lowest was 19.23%. And the median was 28.78%.
LTS:0NL1's Gross Margin % is ranked better than 58.23% of 2942
companies
in the Industrial Products industry
Industry Median: 26.485
vs LTS:0NL1: 29.42
PVA TePla AG had a gross margin of 30.36% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for PVA TePla AG was -1.40% per year.
PVA TePla AG Gross Margin % Historical Data
The historical data trend for PVA TePla AG'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 PVA TePla AG's Gross Margin %
For the Specialty Industrial Machinery subindustry, PVA TePla AG'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.
PVA TePla AG's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, PVA TePla AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PVA TePla AG'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.
PVA TePla AG (LTS:0NL1) 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
PVA TePla AG had a gross margin of 30.36% for the quarter that ended in Dec. 2023 => 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.
PVA TePla AG Gross Margin % Related Terms
Thank you for viewing the detailed overview of PVA TePla AG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
PVA TePla AG is a Germany-based company that provides vacuum solutions for high temperature and plasma treatment processes, as well as plant engineering solutions. The company operates through two segments: Industrial Systems and Semiconductor Systems. The Industrials Systems segment specializes in the development, construction, and marketing of vacuum heat treatment furnaces for processing materials at high temperatures. The Semiconductor Systems segment generates large revenue provides systems for the semiconductor and solar industry ranging from systems for the production of silicon crystals for the semiconductor, solar and optoelectronic industry to systems for plasma treatment in the semiconductor assembly. Major revenue is derived from the Asian market.
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