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ELROF (Elior Group) Gross Margin % : 16.72% (As of Sep. 2024)


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What is Elior Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Elior Group's Gross Profit for the six months ended in Sep. 2024 was $544 Mil. Elior Group's Revenue for the six months ended in Sep. 2024 was $3,252 Mil. Therefore, Elior Group's Gross Margin % for the quarter that ended in Sep. 2024 was 16.72%.

Warning Sign:

Elior Group SA gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


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

ELROF' s Gross Margin % Range Over the Past 10 Years
Min: 14.78   Med: 17.96   Max: 25.51
Current: 17.03


During the past 13 years, the highest Gross Margin % of Elior Group was 25.51%. The lowest was 14.78%. And the median was 17.96%.

ELROF's Gross Margin % is ranked worse than
89.83% of 344 companies
in the Restaurants industry
Industry Median: 46.975 vs ELROF: 17.03

Elior Group had a gross margin of 16.72% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Elior Group was -1.60% per year.


Elior Group Gross Margin % Historical Data

The historical data trend for Elior Group'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.

Elior Group Gross Margin % Chart

Elior Group Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.20 15.28 14.78 15.20 17.03

Elior Group Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 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 13.88 15.25 15.15 17.32 16.72

Competitive Comparison of Elior Group's Gross Margin %

For the Restaurants subindustry, Elior Group'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.


Elior Group's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Elior Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Elior Group's Gross Margin % falls into.



Elior Group Gross Margin % Calculation

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

Elior Group's Gross Margin for the fiscal year that ended in Sep. 2024 is calculated as

Gross Margin % (A: Sep. 2024 )=Gross Profit (A: Sep. 2024 ) / Revenue (A: Sep. 2024 )
=1144.3 / 6718.091
=(Revenue - Cost of Goods Sold) / Revenue
=(6718.091 - 5573.807) / 6718.091
=17.03 %

Elior Group'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 )
=543.8 / 3251.942
=(Revenue - Cost of Goods Sold) / Revenue
=(3251.942 - 2708.102) / 3251.942
=16.72 %

* 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.


Elior Group  (OTCPK:ELROF) 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

Elior Group had a gross margin of 16.72% 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.


Elior Group Gross Margin % Related Terms

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


Elior Group Business Description

Traded in Other Exchanges
Address
9-11 allee de l’Arche, Paris La Defense, FRA, 92032
Elior Group SA operates in the contracted food and support services industry. Its business is divided into Contract Catering and Services. It provides catering services to Business and Industry Market, Education Market, Healthcare and Welfare Industry Market. In Services, Company provide Cleaning and Energy Services to Business and Industries. Also include Solutions to aeronautics sector, HR & temporary staffing solutions, Urban area solutions. It has developed and promoted brands such as Elior, Elior services, Areas, Gemeaz, Serunion, etc. The firm mainly operates in France, Italy, the United States, Spain, and the United Kingdom, with maximum revenue from France.