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Indra Sistemas (CHIX:IDRE) Gross Margin % : 12.76% (As of Sep. 2024)


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What is Indra Sistemas Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Indra Sistemas's Gross Profit for the three months ended in Sep. 2024 was €140 Mil. Indra Sistemas's Revenue for the three months ended in Sep. 2024 was €1,096 Mil. Therefore, Indra Sistemas's Gross Margin % for the quarter that ended in Sep. 2024 was 12.76%.

Warning Sign:

Indra Sistemas SA gross margin has been in long-term decline. The average rate of decline per year is -2.3%.


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

CHIX:IDRe' s Gross Margin % Range Over the Past 10 Years
Min: 25.53   Med: 33.64   Max: 39.55
Current: 39.55


During the past 13 years, the highest Gross Margin % of Indra Sistemas was 39.55%. The lowest was 25.53%. And the median was 33.64%.

CHIX:IDRe's Gross Margin % is ranked worse than
52.02% of 2618 companies
in the Software industry
Industry Median: 41.435 vs CHIX:IDRe: 39.55

Indra Sistemas had a gross margin of 12.76% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Indra Sistemas was -2.30% per year.


Indra Sistemas Gross Margin % Historical Data

The historical data trend for Indra Sistemas'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.

Indra Sistemas Gross Margin % Chart

Indra Sistemas 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 37.20 27.52 30.53 33.46 33.82

Indra Sistemas 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 11.57 87.65 10.42 37.93 12.76

Competitive Comparison of Indra Sistemas's Gross Margin %

For the Information Technology Services subindustry, Indra Sistemas'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.


Indra Sistemas's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Indra Sistemas's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Indra Sistemas's Gross Margin % falls into.



Indra Sistemas Gross Margin % Calculation

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

Indra Sistemas'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 )
=1469 / 4343.072
=(Revenue - Cost of Goods Sold) / Revenue
=(4343.072 - 2874.088) / 4343.072
=33.82 %

Indra Sistemas'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 )
=139.8 / 1095.8
=(Revenue - Cost of Goods Sold) / Revenue
=(1095.8 - 956) / 1095.8
=12.76 %

* 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.


Indra Sistemas  (CHIX:IDRe) 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

Indra Sistemas had a gross margin of 12.76% for the quarter that ended in Sep. 2024 => 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.


Indra Sistemas Gross Margin % Related Terms

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Indra Sistemas Business Description

Address
Avenida de Bruselas, 35, Alcobendas, Madrid, ESP, 28108
Indra Sistemas SA is a Spain-based provider of information technology offerings for finance, insurance, public administration, airports, defense, healthcare, media, telecom, security, energy, and infrastructure end markets. Its product capabilities include analytics, cloud computing, enterprise resource planning, networks and communications, electoral processes, bus technology, subway technology, and sustainability solutions. The firm generates revenue in Europe, Africa, the Middle East, the Americas, and Asia-Pacific.

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