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EML Payments (FRA:A8Y1) Gross Margin % : 80.46% (As of Jun. 2024)


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What is EML Payments Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. EML Payments's Gross Profit for the six months ended in Jun. 2024 was €29.2 Mil. EML Payments's Revenue for the six months ended in Jun. 2024 was €36.3 Mil. Therefore, EML Payments's Gross Margin % for the quarter that ended in Jun. 2024 was 80.46%.

Warning Sign:

EML Payments Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


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

FRA:A8Y1' s Gross Margin % Range Over the Past 10 Years
Min: 59.81   Med: 73.01   Max: 77.14
Current: 69.3


During the past 13 years, the highest Gross Margin % of EML Payments was 77.14%. The lowest was 59.81%. And the median was 73.01%.

FRA:A8Y1's Gross Margin % is ranked better than
78.8% of 2618 companies
in the Software industry
Industry Median: 41.435 vs FRA:A8Y1: 69.30

EML Payments had a gross margin of 80.46% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for EML Payments was -2.50% per year.


EML Payments Gross Margin % Historical Data

The historical data trend for EML Payments'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.

EML Payments Gross Margin % Chart

EML Payments Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 71.96 65.91 66.80 59.81 69.30

EML Payments Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 68.39 51.72 65.97 63.25 80.46

Competitive Comparison of EML Payments's Gross Margin %

For the Software - Infrastructure subindustry, EML Payments'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.


EML Payments's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, EML Payments's Gross Margin % distribution charts can be found below:

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



EML Payments Gross Margin % Calculation

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

EML Payments's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=71.6 / 103.343
=(Revenue - Cost of Goods Sold) / Revenue
=(103.343 - 31.727) / 103.343
=69.30 %

EML Payments's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=29.2 / 36.318
=(Revenue - Cost of Goods Sold) / Revenue
=(36.318 - 7.096) / 36.318
=80.46 %

* 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.


EML Payments  (FRA:A8Y1) 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

EML Payments had a gross margin of 80.46% for the quarter that ended in Jun. 2024 => Durable 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.


EML Payments Gross Margin % Related Terms

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


EML Payments Business Description

Traded in Other Exchanges
Address
333 Ann Street, Level 12, Brisbane, QLD, AUS, 4000
EML Payments is a financial technology company that operates across North America, Europe, and Australia. The firm builds the infrastructure for a customer to facilitate/accept payments via a prepaid card or in real-time. It makes money primarily via clipping a fee on payment transactions. It also earns fees from breakage, inactive accounts, cash establishments and interest on debit volumes. EML's payment solutions cater to a variety of applications including payouts, gifts, incentives, rewards, supplier payments, and more. The firm operates in three segments: gift and incentive, general purpose reloadable, and digital payments.

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