Lendlease Group gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Lendlease Group's Gross Margin % or its related term are showing as below:
LLESY'
s Gross Margin % Range Over the Past 10 Years
Min: 2.66 Med: 8.22 Max: 15.61
Current: 6.4
During the past 13 years, the highestGross Margin % of Lendlease Group was 15.61%. The lowest was 2.66%. And the median was 8.22%.
LLESY's Gross Margin % is ranked worse than 92.74% of 1654
companies
in the Real Estate industry
Industry Median: 36.83
vs LLESY: 6.40
Lendlease Group had a gross margin of 7.08% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lendlease Group was -1.80% per year.
Lendlease Group Gross Margin % Historical Data
The historical data trend for Lendlease Group'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 Lendlease Group's Gross Margin %
For the Real Estate - Diversified subindustry, Lendlease Group'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.
Lendlease Group's Gross Margin % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Lendlease Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lendlease Group'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.
Lendlease Group (OTCPK:LLESY) 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
Lendlease Group had a gross margin of 7.08% 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.
Lendlease Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lendlease Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lendlease Group (Lendlease Group) Business Description
Lendlease's business comprises three segments: development, investments, and construction. Development accounted for more than half of EBITDA in 2020, and the future pipeline is so large it cannot be funded from its own balance sheet. The group is selling stakes in mature projects to its funds management clients. This sacrifices development profit, in return for management fees, reduced risk, and capital to accelerate new projects in the pipeline. Construction generates large revenues but slim margins. This business is retained to preserve expertise and scale for the development business. Lendlease sold its engineering and services business during the pandemic, but retains some risks, notably the Melbourne Metro project. It is also reducing its exposure to retirement living.
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