CAI:SWDY's Gross Margin % is ranked worse than 70.77% of 2935
companies
in the Industrial Products industry
Industry Median: 26.42
vs CAI:SWDY: 19.11
El Sewedy Electric Co had a gross margin of 19.63% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for El Sewedy Electric Co was -0.10% per year.
El Sewedy Electric Co Gross Margin % Historical Data
The historical data trend for El Sewedy Electric 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.
Competitive Comparison of El Sewedy Electric Co's Gross Margin %
For the Electrical Equipment & Parts subindustry, El Sewedy Electric 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.
El Sewedy Electric Co's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, El Sewedy Electric Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where El Sewedy Electric Co'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.
El Sewedy Electric Co (CAI:SWDY) 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
El Sewedy Electric Co had a gross margin of 19.63% for the quarter that ended in Dec. 2023 => 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.
El Sewedy Electric Co Gross Margin % Related Terms
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El Sewedy Electric Co (CAI:SWDY) Business Description
El Sewedy Electric Co is an Egypt based company that is engaged in the machinery business sector. The company's operating segment includes Cables, Constructions and Electricity products. The Cables segment is engaged in manufacturing, marketing and trading the cables. The constructions segment executes construction related to power generation units and electricity distribution networks. Electricity products segment manufactures, electric meters, transformers, electric joints, and market and trade the products. Geographically, it derives most of the revenue from Egypt.
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