DP WorldDFM:DPW Gross Margin % is 30.97% as of Dec. 2019, which is 20% below its 10-year median of 38.83. The stock has 9 warning signs investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. DP World's Gross Profit for the
six
months ended in Dec. 2019 was د.إ4,476.05 Mil. DP World's Revenue for the
six
months ended in Dec. 2019 was د.إ14,454.10 Mil. Therefore, DP World's Gross Margin % for the quarter that ended in Dec. 2019 was 30.97%.
Warning Sign:
DP World PLC gross margin has been in long term decline. The average rate of decline per year is -3.7%.
The historical rank and industry rank for DP World's Gross Margin % or its related term are showing as below:
DFM:DPW'
s Gross Margin % Range Over the Past 10 Years
Min: 29.83 Med: 38.83 Max: 43.48
Current: 34.72
During the past 13 years, the highestGross Margin % of DP World was 43.48%. The lowest was 29.83%. And the median was 38.83%.
DFM:DPW's Gross Margin % is not ranked
in the Transportation industry.
Industry Median: 20.42
vs DFM:DPW: 34.72
DP World had a gross margin of 30.97% for the quarter that ended in Dec. 2019 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for DP World was -3.70% per year.
DP World (DFM:DPW) 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
DP World had a gross margin of 30.97% for the quarter that ended in Dec. 2019 => 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.
DP World Gross Margin % Related Terms
DP World Gross Margin % Historical Data
* Premium members only.
The historical data trend for DP World'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.
For the Marine Shipping subindustry, DP World'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.
DP World Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, DP World's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DP World's Gross Margin % falls into.
* 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.
DP World (DFM:DPW) has a Gross Margin % of 30.97% as of Dec. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on DP World and its competitors. This is 20% below median its historical median of 38.83. Over the past decade, DP World's Gross Margin % has ranged from 29.83 to 43.48.
Is DP World's Gross Margin % too high?
DP World's current Gross Margin % of 30.97% is 20% below median its 10-year median of 38.83. Over the past 10 years, this metric has ranged from a low of 29.83 to a high of 43.48. The Transportation industry median Gross Margin % is 20.42. DP World's value of 30.97% is 51.7% above this industry median.
How does DP World's Gross Margin % compare to KEX?
DP World's Gross Margin % of 30.97% can be compared against companies in the Transportation industry. The industry median Gross Margin % is 20.42. DP World's value of 30.97% is 51.7% above this benchmark. Historically, DP World's own Gross Margin % has ranged from 29.83 to 43.48 over the past decade. While the company's 10-year median is 38.83 vs. the industry median of 20.42, DP World has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DP World's current Gross Margin % of 30.97% is 51.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on DP World and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DP World's current Gross Margin % is 30.97%, which is 20% below median its own 10-year median of 38.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DP World stock overvalued right now?
DP World (DFM:DPW) has a current Gross Margin % of 30.97%. The current Gross Margin % is 30.97%, which is 20% below median its 10-year median of 38.83 and 51.7% above the Transportation industry median of 20.42. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For DP World (DFM:DPW), the current Gross Margin % is 30.97% as of Dec. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
DP World PLC is a transportation and logistics company, domiciled in the United Arab Emirates. The company develops and manages international marine and inland terminal facilities, operates industrial parks and economic zones, and provides logistics services. DP World organises itself into three geographical segments: Asia-Pacific and the Indian subcontinent; Australia and Americas; and the Middle East, Europe, and Africa. The company derives the vast majority of revenue from the Middle East, Europe, and Africa.
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