Market Cap : 1.04 B | Enterprise Value : 1.02 B | P/E (TTM) : 25.73 | P/B : 3.72 |
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IES Holdings's gross profit for the three months ended in Sep. 2020 was $68 Mil. IES Holdings's gross profit for the trailing twelve months (TTM) ended in Sep. 2020 was $228 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. IES Holdings's gross profit for the three months ended in Sep. 2020 was $68 Mil. IES Holdings's Revenue for the three months ended in Sep. 2020 was $330 Mil. Therefore, IES Holdings's Gross Margin % for the quarter that ended in Sep. 2020 was 20.63%.
IES Holdings had a gross margin of 20.63% for the quarter that ended in Sep. 2020 => Competition eroding margins
During the past 13 years, the highest Gross Margin % of IES Holdings was 19.14%. The lowest was 10.93%. And the median was 17.01%.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where IES Holdings's Gross Profit falls into.
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
IES Holdings's Gross Profit for the fiscal year that ended in Sep. 2020 is calculated as
Gross Profit (A: Sep. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 1190.856 | - | 962.897 | |
= | 228 |
IES Holdings's Gross Profit for the quarter that ended in Sep. 2020 is calculated as
Gross Profit (Q: Sep. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 330.411 | - | 262.251 | |
= | 68 |
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2020 was 50.215 (Dec. 2019 ) + 51.264 (Mar. 2020 ) + 58.32 (Jun. 2020 ) + 68.16 (Sep. 2020 ) = $228 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
IES Holdings's Gross Margin % for the quarter that ended in Sep. 2020 is calculated as
Gross Margin % (Q: Sep. 2020 ) | = | Gross Profit (Q: Sep. 2020 ) | / | Revenue (Q: Sep. 2020 ) |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | 68 | / | 330.411 | |
= | 20.63 % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.
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
IES Holdings had a gross margin of 20.63% for the quarter that ended in Sep. 2020 => Competition eroding margins
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