Gross Margin % is calculated as gross profit divided by its revenue. CECO Environmental's Gross Profit for the
three
months ended in Dec. 2023 was $53.2 Mil. CECO Environmental's Revenue for the
three
months ended in Dec. 2023 was $153.7 Mil. Therefore, CECO Environmental's Gross Margin % for the quarter that ended in Dec. 2023 was 34.60%.
Warning Sign:
CECO Environmental Corp gross margin has been in long-term decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for CECO Environmental's Gross Margin % or its related term are showing as below:
CECO'
s Gross Margin % Range Over the Past 10 Years
Min: 29.71 Med: 32.29 Max: 33.38
Current: 31.39
During the past 13 years, the highestGross Margin % of CECO Environmental was 33.38%. The lowest was 29.71%. And the median was 32.29%.
CECO's Gross Margin % is ranked better than 63.36% of 2937
companies
in the Industrial Products industry
Industry Median: 26.45
vs CECO: 31.39
CECO Environmental had a gross margin of 34.60% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for CECO Environmental was -1.70% per year.
CECO Environmental Gross Margin % Historical Data
The historical data trend for CECO Environmental'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 CECO Environmental's Gross Margin %
For the Pollution & Treatment Controls subindustry, CECO Environmental'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.
CECO Environmental's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, CECO Environmental's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CECO Environmental'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.
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
CECO Environmental had a gross margin of 34.60% 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.
CECO Environmental Gross Margin % Related Terms
Thank you for viewing the detailed overview of CECO Environmental's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
CECO Environmental (CECO Environmental) Business Description
CECO Environmental Corp serves the energy, industrial, and other niche markets. The company operates through the Engineered Systems segment that serves the power generation, refinery, water/wastewater, and midstream oil and gas markets, and Industrial Process Solutions segment, which serves the broad industrial air pollution control, beverage can, fluid handling, electric vehicle production, food and beverage, semi-conductor, process filtration, pharmaceutical, petrochemical, wastewater treatment, wood manufacturing, desalination, and aquaculture markets. The majority of revenue is earned from the Engineered Systems Segment.
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