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Valeo (VLEEY) Gross Margin % : 17.50% (As of Dec. 2022)


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What is Valeo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Valeo's Gross Profit for the six months ended in Dec. 2022 was $1,968 Mil. Valeo's Revenue for the six months ended in Dec. 2022 was $11,248 Mil. Therefore, Valeo's Gross Margin % for the quarter that ended in Dec. 2022 was 17.50%.


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

VLEEY' s Gross Margin % Range Over the Past 10 Years
Min: 13.11   Med: 17.71   Max: 20.73
Current: 17.2


During the past 13 years, the highest Gross Margin % of Valeo was 20.73%. The lowest was 13.11%. And the median was 17.71%.

VLEEY's Gross Margin % is ranked worse than
57.53% of 1269 companies
in the Vehicles & Parts industry
Industry Median: 19.37 vs VLEEY: 17.20

Valeo had a gross margin of 17.50% for the quarter that ended in Dec. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Valeo was -0.40% per year.


Valeo Gross Margin % Historical Data

The historical data trend for Valeo'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.

Valeo Gross Margin % Chart

Valeo 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 17.73 13.11 17.61 17.20 17.92

Valeo Semi-Annual Data
Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Dec23
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 17.63 17.59 16.87 17.50 -

Competitive Comparison of Valeo's Gross Margin %

For the Auto Parts subindustry, Valeo'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.


Valeo's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Valeo's Gross Margin % distribution charts can be found below:

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



Valeo Gross Margin % Calculation

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

Valeo'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 )
=4308.6 / 24039.258
=(Revenue - Cost of Goods Sold) / Revenue
=(24039.258 - 19730.643) / 24039.258
=17.92 %

Valeo's Gross Margin for the quarter that ended in Dec. 2022 is calculated as


Gross Margin % (Q: Dec. 2022 )=Gross Profit (Q: Dec. 2022 ) / Revenue (Q: Dec. 2022 )
=1968.2 / 11247.881
=(Revenue - Cost of Goods Sold) / Revenue
=(11247.881 - 9279.661) / 11247.881
=17.50 %

* 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.


Valeo  (OTCPK:VLEEY) 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

Valeo had a gross margin of 17.50% for the quarter that ended in Dec. 2022 => No sustainable competitive advantage


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.


Valeo Gross Margin % Related Terms

Thank you for viewing the detailed overview of Valeo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Valeo (VLEEY) Business Description

Traded in Other Exchanges
Address
100, rue de Courcelles, Cedex 17, Paris, FRA, 75017
Based in France, Valeo is an automotive parts supplier that operates through four business segments, including powertrain systems (PTS, 31% of 2022 revenue), thermal systems (THS, 22%), comfort and driving assistance systems (CDA, 22%), and visibility systems (VIS, 25%). As of 2022, Valeo generated 84% of its revenue through original equipment sales and 11% of revenue through aftermarket parts. The firm's five largest automaker customers accounted for 53% of 2022 revenue. Europe is Valeo's largest geographic market at 45% of 2022 revenue, followed by Asia at 33%, and Americas at 22%.

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