Hochtief AG (Hochtief AG) Gross Margin % : 22.44% (As of Dec. 2023)

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What is Hochtief AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hochtief AG's Gross Profit for the three months ended in Dec. 2023 was $1,809 Mil. Hochtief AG's Revenue for the three months ended in Dec. 2023 was $8,063 Mil. Therefore, Hochtief AG's Gross Margin % for the quarter that ended in Dec. 2023 was 22.44%.

Warning Sign:

Hochtief AG gross margin has been in long-term decline. The average rate of decline per year is -2.2%.

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

HOCFF' s Gross Margin % Range Over the Past 10 Years
Min: 24.11 Med: 25.93 Max: 28.61
Current: 24.67

During the past 13 years, the highest Gross Margin % of Hochtief AG was 28.61%. The lowest was 24.11%. And the median was 25.93%.

HOCFF's Gross Margin % is ranked better than
60.12% of 1610 companies
in the Construction industry
Industry Median: 19.125 vs HOCFF: 24.67

Hochtief AG had a gross margin of 22.44% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hochtief AG was -2.20% per year.

Hochtief AG Gross Margin % Historical Data

The historical data trend for Hochtief AG'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.

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Hochtief AG Gross Margin % Chart

Hochtief AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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26.56

24.18

24.72

24.11

24.67

Hochtief AG Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															24.98	25.57	24.86	26.00	22.44

Competitive Comparison of Hochtief AG's Gross Margin %

For the Engineering & Construction subindustry, Hochtief AG'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.

Hochtief AG's Gross Margin % Distribution in the Construction Industry

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

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

Hochtief AG Gross Margin % Calculation

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

Hochtief AG'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 )
	=	7468.4	/	30268.316
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(30268.316 - 22799.87)	/	30268.316
	=	24.67 %

Hochtief AG's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1809.4	/	8063.361
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(8063.361 - 6253.932)	/	8063.361
	=	22.44 %

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.

Hochtief AG (OTCPK:HOCFF) 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

Hochtief AG had a gross margin of 22.44% 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.

Hochtief AG Gross Margin % Related Terms

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Hochtief AG (Hochtief AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Hochtief AG (OTCPK:HOCFF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

1HOT:Italy HOTd:UK 0EPW:UK HOT:Germany HOT:Austria

Address

Alfredstrasse 236, Essen, NW, DEU, 45133

Website

https://www.hochtief.com

Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where most of the company's assets are located.