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China Everbright Water (FRA:BIU2) Gross Margin % : 37.86% (As of Jun. 2024)


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What is China Everbright Water Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China Everbright Water's Gross Profit for the six months ended in Jun. 2024 was €151.0 Mil. China Everbright Water's Revenue for the six months ended in Jun. 2024 was €398.8 Mil. Therefore, China Everbright Water's Gross Margin % for the quarter that ended in Jun. 2024 was 37.86%.


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

FRA:BIU2' s Gross Margin % Range Over the Past 10 Years
Min: 34.05   Med: 38.49   Max: 45.41
Current: 38.44


During the past 13 years, the highest Gross Margin % of China Everbright Water was 45.41%. The lowest was 34.05%. And the median was 38.49%.

FRA:BIU2's Gross Margin % is ranked better than
66.12% of 490 companies
in the Utilities - Regulated industry
Industry Median: 30.32 vs FRA:BIU2: 38.44

China Everbright Water had a gross margin of 37.86% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for China Everbright Water was 4.20% per year.


China Everbright Water Gross Margin % Historical Data

The historical data trend for China Everbright Water'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.

China Everbright Water Gross Margin % Chart

China Everbright Water Annual Data
Trend Jun14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.09 38.86 40.53 38.11 42.10

China Everbright Water 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 35.07 41.37 45.74 38.99 37.86

Competitive Comparison of China Everbright Water's Gross Margin %

For the Utilities - Regulated Water subindustry, China Everbright Water'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.


China Everbright Water's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, China Everbright Water's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Everbright Water's Gross Margin % falls into.



China Everbright Water Gross Margin % Calculation

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

China Everbright Water's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=331.4 / 787.241
=(Revenue - Cost of Goods Sold) / Revenue
=(787.241 - 455.846) / 787.241
=42.10 %

China Everbright Water'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 )
=151 / 398.791
=(Revenue - Cost of Goods Sold) / Revenue
=(398.791 - 247.816) / 398.791
=37.86 %

* 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.


China Everbright Water  (FRA:BIU2) 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

China Everbright Water had a gross margin of 37.86% for the quarter that ended in Jun. 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.


China Everbright Water Gross Margin % Related Terms

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


China Everbright Water Business Description

Traded in Other Exchanges
Address
No. 1003 Shennan Avenue, 26th Floor, Block A, Oriental Xintiandi Plaza, Futian District, Shenzhen, CHN, 518000
China Everbright Water Ltd provides water supply, waste water treatment, sludge treatment, and other environmental services. It designs, constructs, and operates water treatment plants, and extracts energy from water discharged by the plants to power air-conditioning for various buildings. Concession arrangements from various Chinese government authorities span multiple years, and allow the company to operate plants and charge users a fee for consumption. Under the arrangements, China Everbright is obligated to maintain the plants, and receives annual payments from the grantors. Raw materials and consumables are utilized by experienced technicians to repair and maintain facilities. Majority of sales and assets are generated and located in China.

China Everbright Water Headlines

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