NFI Group (TSX:NFI) Gross Margin % : 10.98% (As of Dec. 2023)

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What is NFI Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NFI Group's Gross Profit for the three months ended in Dec. 2023 was C$117 Mil. NFI Group's Revenue for the three months ended in Dec. 2023 was C$1,062 Mil. Therefore, NFI Group's Gross Margin % for the quarter that ended in Dec. 2023 was 10.98%.

Warning Sign:

NFI Group Inc gross margin has been in long-term decline. The average rate of decline per year is -22.9%.

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

TSX:NFI' s Gross Margin % Range Over the Past 10 Years
Min: 2.38 Med: 11.44 Max: 18.95
Current: 8.22

During the past 13 years, the highest Gross Margin % of NFI Group was 18.95%. The lowest was 2.38%. And the median was 11.44%.

TSX:NFI's Gross Margin % is ranked worse than
88.16% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs TSX:NFI: 8.22

NFI Group had a gross margin of 10.98% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NFI Group was -22.90% per year.

NFI Group Gross Margin % Historical Data

The historical data trend for NFI 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.

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NFI Group Gross Margin % Chart

NFI Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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14.29

8.24

10.05

2.38

8.22

NFI Group 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															3.18	6.91	7.26	7.00	10.98

Competitive Comparison of NFI Group's Gross Margin %

For the Auto Manufacturers subindustry, NFI 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.

NFI Group's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, NFI Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where NFI Group's Gross Margin % falls into.

NFI Group Gross Margin % Calculation

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

NFI Group'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 )
	=	296.2	/	3602.506
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3602.506 - 3306.328)	/	3602.506
	=	8.22 %

NFI Group'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 )
	=	116.6	/	1062.052
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1062.052 - 945.412)	/	1062.052
	=	10.98 %

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.

NFI Group (TSX:NFI) 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

NFI Group had a gross margin of 10.98% 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.

NFI Group Gross Margin % Related Terms

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NFI Group (TSX:NFI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » NFI Group Inc (TSX:NFI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

NFYEF:USA 9NF:Germany

Address

711 Kernaghan Avenue, Winnipeg, MB, CAN, R2C 3T4

Website

https://www.nfigroup.com

NFI Group Inc is a global bus manufacturer providing a comprehensive suite of mass transportation solutions under brands: New Flyer(heavy-duty transit buses), Alexander Dennis Limited ("ADL") (single and double-deck buses), Plaxton (motor coaches), MCI (motor coaches), ARBOC Specialty Vehicles, LLC ("ARBOC") (low-floor cutaway and medium-duty buses) and NFI Parts (aftermarket parts sales). The Company has two reportable segments which are the Company's strategic business units: Manufacturing Operations and Aftermarket Operations. It generates majority revenue from Manufacturing Operations.

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