NCC AB (NCC AB) Gross Margin % : 8.21% (As of Dec. 2023)

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What is NCC AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NCC AB's Gross Profit for the three months ended in Dec. 2023 was $125 Mil. NCC AB's Revenue for the three months ended in Dec. 2023 was $1,520 Mil. Therefore, NCC AB's Gross Margin % for the quarter that ended in Dec. 2023 was 8.21%.

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

NCCBF' s Gross Margin % Range Over the Past 10 Years
Min: 3.73 Med: 8.14 Max: 10.01
Current: 8.23

During the past 13 years, the highest Gross Margin % of NCC AB was 10.01%. The lowest was 3.73%. And the median was 8.14%.

NCCBF's Gross Margin % is ranked worse than
80.91% of 1608 companies
in the Construction industry
Industry Median: 19.23 vs NCCBF: 8.23

NCC AB had a gross margin of 8.21% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NCC AB was 12.60% per year.

NCC AB Gross Margin % Historical Data

The historical data trend for NCC AB'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.

NCC AB Gross Margin % Chart

NCC AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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7.04

8.04

8.46

7.37

8.23

NCC AB 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															7.18	7.18	8.68	8.71	8.21

Competitive Comparison of NCC AB's Gross Margin %

For the Engineering & Construction subindustry, NCC AB'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.

NCC AB's Gross Margin % Distribution in the Construction Industry

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

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

NCC AB Gross Margin % Calculation

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

NCC AB'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 )
	=	456.9	/	5550.226
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5550.226 - 5093.297)	/	5550.226
	=	8.23 %

NCC AB'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 )
	=	124.8	/	1519.946
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1519.946 - 1395.16)	/	1519.946
	=	8.21 %

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.

NCC AB (OTCPK:NCCBF) 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

NCC AB had a gross margin of 8.21% 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.

NCC AB Gross Margin % Related Terms

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NCC AB (NCC AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » NCC AB (OTCPK:NCCBF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

NCC B:Sweden NCC A:Sweden NCCBs:UK 0OFP:UK NCGB:Germany

Address

Herrjarva Torg 4, Solna, SWE, SE-170 80

Website

https://www.ncc.com

NCC AB is a leading construction and property development company in the Nordic region. Its business operations are divided into five operating segments: NCC Infrastructure, NCC Building Sweden, NCC Building Nordics, NCC Industry, and NCC Property Development in descending order of total net sales. The company's major projects include entire infrastructure build-outs such as tunnels, roads and railways, housing, office buildings, school and hospital construction, production of asphalt and stone materials, and commercial property development.