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Wacker Neuson SE (XTER:WAC) Gross Margin % : 21.81% (As of Dec. 2023)


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What is Wacker Neuson SE Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Wacker Neuson SE's Gross Profit for the three months ended in Dec. 2023 was €140 Mil. Wacker Neuson SE's Revenue for the three months ended in Dec. 2023 was €641 Mil. Therefore, Wacker Neuson SE's Gross Margin % for the quarter that ended in Dec. 2023 was 21.81%.

Warning Sign:

Wacker Neuson SE 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 Wacker Neuson SE's Gross Margin % or its related term are showing as below:

XTER:WAC' s Gross Margin % Range Over the Past 10 Years
Min: 23.72   Med: 26.36   Max: 29.69
Current: 24.35


During the past 13 years, the highest Gross Margin % of Wacker Neuson SE was 29.69%. The lowest was 23.72%. And the median was 26.36%.

XTER:WAC's Gross Margin % is ranked better than
50.73% of 205 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.22 vs XTER:WAC: 24.35

Wacker Neuson SE had a gross margin of 21.81% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Wacker Neuson SE was -1.70% per year.


Wacker Neuson SE Gross Margin % Historical Data

The historical data trend for Wacker Neuson SE'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.

Wacker Neuson SE Gross Margin % Chart

Wacker Neuson SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.98 24.78 25.91 23.72 24.35

Wacker Neuson SE 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.60 25.07 25.38 25.02 21.81

Competitive Comparison of Wacker Neuson SE's Gross Margin %

For the Farm & Heavy Construction Machinery subindustry, Wacker Neuson SE'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.


Wacker Neuson SE's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Wacker Neuson SE's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Wacker Neuson SE's Gross Margin % falls into.



Wacker Neuson SE Gross Margin % Calculation

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

Wacker Neuson SE'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 )
=646.5 / 2654.9
=(Revenue - Cost of Goods Sold) / Revenue
=(2654.9 - 2008.4) / 2654.9
=24.35 %

Wacker Neuson SE'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 )
=139.8 / 641
=(Revenue - Cost of Goods Sold) / Revenue
=(641 - 501.2) / 641
=21.81 %

* 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.


Wacker Neuson SE  (XTER:WAC) 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

Wacker Neuson SE had a gross margin of 21.81% 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.


Wacker Neuson SE Gross Margin % Related Terms

Thank you for viewing the detailed overview of Wacker Neuson SE's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Wacker Neuson SE (XTER:WAC) Business Description

Traded in Other Exchanges
Address
Preussenstrasse 41, Munich, DEU, 80809
Wacker Neuson SE manufactures light and heavy equipment for construction, landscaping, agriculture, recycling, energy, and rail industries. Excavators, dumpers, loaders, concrete technology, generators, and saws make up just a portion of the company's product portfolio. Besides, the company offers attachments and accessories for products to help deliver optimal solutions. Wacker Neuson has three business segments: Compact Equipment (approximately half of the total revenue), Light Equipment, and Services. The company offers a range of services, spare parts, and rental equipment through sales and service stations strategically placed around the world. Europe generates the majority of total revenue, but the company also sells to customers in the Americas and Asia-Pacific.

Wacker Neuson SE (XTER:WAC) Headlines

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