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Renewi (FRA:1K5A) Gross Margin % : 18.36% (As of Sep. 2024)


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What is Renewi Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Renewi's Gross Profit for the six months ended in Sep. 2024 was €161 Mil. Renewi's Revenue for the six months ended in Sep. 2024 was €875 Mil. Therefore, Renewi's Gross Margin % for the quarter that ended in Sep. 2024 was 18.36%.


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

FRA:1K5A' s Gross Margin % Range Over the Past 10 Years
Min: 10.6   Med: 15.04   Max: 20.19
Current: 18.56


During the past 13 years, the highest Gross Margin % of Renewi was 20.19%. The lowest was 10.60%. And the median was 15.04%.

FRA:1K5A's Gross Margin % is ranked worse than
72.53% of 233 companies
in the Waste Management industry
Industry Median: 28.07 vs FRA:1K5A: 18.56

Renewi had a gross margin of 18.36% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Renewi was 8.90% per year.


Renewi Gross Margin % Historical Data

The historical data trend for Renewi'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.

Renewi Gross Margin % Chart

Renewi Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.28 15.91 19.09 20.19 19.74

Renewi 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 20.03 20.39 20.72 18.76 18.36

Competitive Comparison of Renewi's Gross Margin %

For the Waste Management subindustry, Renewi'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.


Renewi's Gross Margin % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Renewi's Gross Margin % distribution charts can be found below:

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



Renewi Gross Margin % Calculation

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

Renewi's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=333.4 / 1689.2
=(Revenue - Cost of Goods Sold) / Revenue
=(1689.2 - 1355.8) / 1689.2
=19.74 %

Renewi'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 )
=160.6 / 874.5
=(Revenue - Cost of Goods Sold) / Revenue
=(874.5 - 713.9) / 874.5
=18.36 %

* 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.


Renewi  (FRA:1K5A) 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

Renewi had a gross margin of 18.36% 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.


Renewi Gross Margin % Related Terms

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


Renewi Business Description

Traded in Other Exchanges
Address
Wavendon Business Park, Wavendon, Milton Keynes, Buckinghamshire, GBR, MK17 8LX
Renewi PLC is a waste-to-product company providing services such as collection, recycling, and treatment of commercial waste, reprocessing and recycling of contaminated soil and materials. The company's segment includes Commercial Waste, Mineralz & Water, Specialities and Group central services. It generates maximum revenue from the Commercial Waste segment. Geographically, it derives most of the revenue from the Netherlands and also has a presence in Belgium, UK, France, and Other Countries.

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