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Comtrend (ROCO:8089) Gross Margin % : 32.81% (As of Jun. 2024)


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What is Comtrend Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Comtrend's Gross Profit for the three months ended in Jun. 2024 was NT$454 Mil. Comtrend's Revenue for the three months ended in Jun. 2024 was NT$1,383 Mil. Therefore, Comtrend's Gross Margin % for the quarter that ended in Jun. 2024 was 32.81%.

Warning Sign:

Comtrend Corp gross margin has been in long-term decline. The average rate of decline per year is -3.5%.


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

ROCO:8089' s Gross Margin % Range Over the Past 10 Years
Min: 20.86   Med: 30.26   Max: 42.73
Current: 42.73


During the past 10 years, the highest Gross Margin % of Comtrend was 42.73%. The lowest was 20.86%. And the median was 30.26%.

ROCO:8089's Gross Margin % is ranked better than
80.39% of 2422 companies
in the Hardware industry
Industry Median: 24.725 vs ROCO:8089: 42.73

Comtrend had a gross margin of 32.81% for the quarter that ended in Jun. 2024 => Competition eroding margins

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


Comtrend Gross Margin % Historical Data

The historical data trend for Comtrend'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.

Comtrend Gross Margin % Chart

Comtrend 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 30.77 32.21 32.17 30.94 20.86

Comtrend Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 11.62 32.34 21.48 54.51 32.81

Competitive Comparison of Comtrend's Gross Margin %

For the Communication Equipment subindustry, Comtrend'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.


Comtrend's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Comtrend's Gross Margin % distribution charts can be found below:

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



Comtrend Gross Margin % Calculation

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

Comtrend'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 )
=185.4 / 888.721
=(Revenue - Cost of Goods Sold) / Revenue
=(888.721 - 703.301) / 888.721
=20.86 %

Comtrend's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=453.7 / 1382.786
=(Revenue - Cost of Goods Sold) / Revenue
=(1382.786 - 929.074) / 1382.786
=32.81 %

* 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.


Comtrend  (ROCO:8089) 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

Comtrend had a gross margin of 32.81% for the quarter that ended in Jun. 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.


Comtrend Gross Margin % Related Terms

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Comtrend Business Description

Traded in Other Exchanges
N/A
Address
10 Lane 609, Chung Hsin Road, 3rd Floor-1, Section 5, Sanchong District, New Taipei City, TWN, 241405
Comtrend Corp is a Taiwan-based designer and manufacturer of broadband communication equipment. The company engages in the research, manufacturing, marketing and maintaining of cable and wireless transmission equipment, multiplexers, digital subscriber lines and loop carrier systems, synchronous optical network equipment and synchronous cable accessories.

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