Medicover AB gross margin has been in long-term decline. The average rate of decline per year is -3%.
The historical rank and industry rank for Medicover AB's Gross Margin % or its related term are showing as below:
FRA:5M0B'
s Gross Margin % Range Over the Past 10 Years
Min: 20.51 Med: 24.35 Max: 28.68
Current: 20.51
During the past 10 years, the highestGross Margin % of Medicover AB was 28.68%. The lowest was 20.51%. And the median was 24.35%.
FRA:5M0B's Gross Margin % is ranked worse than 81.77% of 609
companies
in the Healthcare Providers & Services industry
Industry Median: 41.54
vs FRA:5M0B: 20.51
Medicover AB had a gross margin of 20.97% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Medicover AB was -3.00% per year.
Medicover AB Gross Margin % Historical Data
The historical data trend for Medicover AB'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.
Competitive Comparison of Medicover AB's Gross Margin %
For the Medical Care Facilities subindustry, Medicover AB'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.
Medicover AB's Gross Margin % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Medicover AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Medicover AB'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.
Medicover AB (FRA:5M0B) 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
Medicover AB had a gross margin of 20.97% for the quarter that ended in Mar. 2024 => 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.
Medicover AB Gross Margin % Related Terms
Thank you for viewing the detailed overview of Medicover AB's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Medicover AB is an international healthcare and diagnostic services, provider. It offers a broad spectrum of healthcare services via an extensive network of ambulatory clinics, hospitals, specialty-care facilities, and laboratories. The company offers its services through two segments; Diagnostic Services offer a broad range of laboratory testing in all clinical pathology areas in Germany, Romania, Poland, and Ukraine, and Healthcare Services offer high-quality care based on an Integrated Healthcare Model and Fee-For-Service in Poland, India, and Romania. It generates maximum revenue from the Healthcare Services segment. Geographically, it derives a majority of its revenue from Poland and also has a presence in Romania; Germany; Ukraine; India, and Other Countries.
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