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Daisan Co (TSE:4750) Gross Margin % : 25.63% (As of Jan. 2024)


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What is Daisan Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Daisan Co's Gross Profit for the three months ended in Jan. 2024 was 円664 Mil. Daisan Co's Revenue for the three months ended in Jan. 2024 was 円2,590 Mil. Therefore, Daisan Co's Gross Margin % for the quarter that ended in Jan. 2024 was 25.63%.

Warning Sign:

Daisan Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.1%.


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

TSE:4750' s Gross Margin % Range Over the Past 10 Years
Min: 27.06   Med: 30.94   Max: 34.01
Current: 27.06


During the past 13 years, the highest Gross Margin % of Daisan Co was 34.01%. The lowest was 27.06%. And the median was 30.94%.

TSE:4750's Gross Margin % is ranked better than
64.23% of 1613 companies
in the Construction industry
Industry Median: 19.14 vs TSE:4750: 27.06

Daisan Co had a gross margin of 25.63% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Daisan Co was -4.10% per year.


Daisan Co Gross Margin % Historical Data

The historical data trend for Daisan Co'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.

Daisan Co Gross Margin % Chart

Daisan Co Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.46 31.05 28.32 29.38 27.91

Daisan Co Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 27.05 28.98 26.96 26.48 25.63

Competitive Comparison of Daisan Co's Gross Margin %

For the Engineering & Construction subindustry, Daisan Co'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.


Daisan Co's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Daisan Co's Gross Margin % distribution charts can be found below:

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



Daisan Co Gross Margin % Calculation

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

Daisan Co's Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Gross Margin % (A: Apr. 2023 )=Gross Profit (A: Apr. 2023 ) / Revenue (A: Apr. 2023 )
=2934.4 / 10512.283
=(Revenue - Cost of Goods Sold) / Revenue
=(10512.283 - 7577.871) / 10512.283
=27.91 %

Daisan Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=663.9 / 2589.849
=(Revenue - Cost of Goods Sold) / Revenue
=(2589.849 - 1925.987) / 2589.849
=25.63 %

* 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.


Daisan Co  (TSE:4750) 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

Daisan Co had a gross margin of 25.63% for the quarter that ended in Jan. 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.


Daisan Co Gross Margin % Related Terms

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Daisan Co (TSE:4750) Business Description

Traded in Other Exchanges
N/A
Address
2-6-12 Namamoto - Cho, Chuo - ku, Sanmarion NBF Tower 3rd Floor, Osaka, JPN, 5410054
Daisan Co., Ltd. develops, manufactures, assembles, and sells scaffolding equipment for temporary construction and other related services in Japan. The company also provides setting up and removing services for wedge lock scaffolding equipment; and accepts customized and special product specification orders from clients.

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