GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Holmen AB (CHIX:HOLMBs) » Definitions » Gross Margin %

Holmen AB (CHIX:HOLMBS) Gross Margin % : 50.18% (As of Sep. 2024)


View and export this data going back to 2013. Start your Free Trial

What is Holmen AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Holmen AB's Gross Profit for the three months ended in Sep. 2024 was kr2,826 Mil. Holmen AB's Revenue for the three months ended in Sep. 2024 was kr5,632 Mil. Therefore, Holmen AB's Gross Margin % for the quarter that ended in Sep. 2024 was 50.18%.

Warning Sign:

Holmen AB gross margin has been in long-term decline. The average rate of decline per year is -3.5%.


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

CHIX:HOLMBs' s Gross Margin % Range Over the Past 10 Years
Min: 46.33   Med: 49.2   Max: 99.69
Current: 49.3


During the past 13 years, the highest Gross Margin % of Holmen AB was 99.69%. The lowest was 46.33%. And the median was 49.20%.

CHIX:HOLMBs's Gross Margin % is ranked better than
89.96% of 279 companies
in the Forest Products industry
Industry Median: 19.11 vs CHIX:HOLMBs: 49.30

Holmen AB had a gross margin of 50.18% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Holmen AB was -3.50% per year.


Holmen AB Gross Margin % Historical Data

The historical data trend for Holmen 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.

Holmen AB Gross Margin % Chart

Holmen AB 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 99.69 49.23 50.49 57.39 53.15

Holmen AB Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 50.39 47.85 48.95 50.14 50.18

Competitive Comparison of Holmen AB's Gross Margin %

For the Paper & Paper Products subindustry, Holmen 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.


Holmen AB's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Holmen AB's Gross Margin % distribution charts can be found below:

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



Holmen AB Gross Margin % Calculation

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

Holmen 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 )
=12116 / 22795
=(Revenue - Cost of Goods Sold) / Revenue
=(22795 - 10679) / 22795
=53.15 %

Holmen AB's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=2826 / 5632
=(Revenue - Cost of Goods Sold) / Revenue
=(5632 - 2806) / 5632
=50.18 %

* 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.


Holmen AB  (CHIX:HOLMBs) 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

Holmen AB had a gross margin of 50.18% for the quarter that ended in Sep. 2024 => Durable 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.


Holmen AB Gross Margin % Related Terms

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


Holmen AB Business Description

Address
Strandvagen 1, P.O. Box 5407, Stockholm, SWE, SE-114 84
Holmen AB produces and sells timber, wood products, a variety of paper products, and electricity generated through renewable energy sources. The company organizes itself into five segments based on product type: Forest, Paperboard, Paper, Wood Products, and Renewable Energy. The company's product portfolio includes logs, biofuel, paperboard for consumer packaging, paper for books, construction timber, and renewable energy from hydro and wind power. The company's customer segment is composed of printing firms, sawmills, pulp mills, paper mills, the construction industry, and the packaging industry, among others. The vast majority of revenue comes from the company's paper and paperboard segments combined, and it earns the majority of its revenue in Europe.

Holmen AB Headlines

No Headlines