E-Home Household Service Holdings (E-Home Household Service Holdings) Gross Margin % : 25.20% (As of Jun. 2023)

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What is E-Home Household Service Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. E-Home Household Service Holdings's Gross Profit for the six months ended in Jun. 2023 was $7.42 Mil. E-Home Household Service Holdings's Revenue for the six months ended in Jun. 2023 was $29.45 Mil. Therefore, E-Home Household Service Holdings's Gross Margin % for the quarter that ended in Jun. 2023 was 25.20%.

Warning Sign:

E-Home Household Service Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.5%.

The historical rank and industry rank for E-Home Household Service Holdings's Gross Margin % or its related term are showing as below:

EJH' s Gross Margin % Range Over the Past 10 Years
Min: 27.16 Med: 35.17 Max: 40.96
Current: 27.16

During the past 7 years, the highest Gross Margin % of E-Home Household Service Holdings was 40.96%. The lowest was 27.16%. And the median was 35.17%.

EJH's Gross Margin % is ranked worse than
77.45% of 102 companies
in the Personal Services industry
Industry Median: 45.15 vs EJH: 27.16

E-Home Household Service Holdings had a gross margin of 25.20% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for E-Home Household Service Holdings was -7.50% per year.

E-Home Household Service Holdings Gross Margin % Historical Data

The historical data trend for E-Home Household Service Holdings'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.

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E-Home Household Service Holdings Gross Margin % Chart

E-Home Household Service Holdings Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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37.89

34.85

35.17

30.36

27.16

E-Home Household Service Holdings Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Gross Margin %	Get a 7-Day Free Trial								34.27	31.31	29.27	28.65	25.20

Competitive Comparison of E-Home Household Service Holdings's Gross Margin %

For the Personal Services subindustry, E-Home Household Service Holdings'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.

E-Home Household Service Holdings's Gross Margin % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, E-Home Household Service Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where E-Home Household Service Holdings's Gross Margin % falls into.

E-Home Household Service Holdings Gross Margin % Calculation

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

E-Home Household Service Holdings's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	18.6	/	68.322
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(68.322 - 49.764)	/	68.322
	=	27.16 %

E-Home Household Service Holdings's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	7.4	/	29.445
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(29.445 - 22.025)	/	29.445
	=	25.20 %

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.

E-Home Household Service Holdings (NAS:EJH) 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

E-Home Household Service Holdings had a gross margin of 25.20% for the quarter that ended in Jun. 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.

E-Home Household Service Holdings Gross Margin % Related Terms

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E-Home Household Service Holdings (E-Home Household Service Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » E-Home Household Service Holdings Ltd (NAS:EJH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yangqiao Road, Dongbai Center, 18th Floor, East Tower, Building B, Gulou District, Fuzhou, CHN, 350001

Website

https://www.ej111.com

E-Home Household Service Holdings Ltd is a household service company providing integrated household services through its website and WeChat platform across China. The company offers services including home appliance and housekeeping services. It operates its business mainly by receiving the orders online and providing the services offline. Its operations are organized into five reportable segments: installation and maintenance services, housekeeping services, senior care services, sales of pharmaceutical products and educational consulting services. The group's principal source of revenue comes from the Installation and Maintenance segment, followed by Housekeeping and Senior care services segment.