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Construction Partners (FRA:CQY) Gross Margin % : 15.62% (As of Sep. 2024)


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What is Construction Partners Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Construction Partners's Gross Profit for the three months ended in Sep. 2024 was €76 Mil. Construction Partners's Revenue for the three months ended in Sep. 2024 was €485 Mil. Therefore, Construction Partners's Gross Margin % for the quarter that ended in Sep. 2024 was 15.62%.

Warning Sign:

Construction Partners Inc gross margin has been in long-term decline. The average rate of decline per year is -3.3%.


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

FRA:CQY' s Gross Margin % Range Over the Past 10 Years
Min: 10.7   Med: 14.16   Max: 16.01
Current: 14.16


During the past 9 years, the highest Gross Margin % of Construction Partners was 16.01%. The lowest was 10.70%. And the median was 14.16%.

FRA:CQY's Gross Margin % is ranked worse than
65.08% of 1664 companies
in the Construction industry
Industry Median: 20.015 vs FRA:CQY: 14.16

Construction Partners had a gross margin of 15.62% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Construction Partners was -3.30% per year.


Construction Partners Gross Margin % Historical Data

The historical data trend for Construction Partners'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.

Construction Partners Gross Margin % Chart

Construction Partners Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 15.55 13.17 10.70 12.56 14.16

Construction Partners Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 15.90 13.08 10.45 16.12 15.62

Competitive Comparison of Construction Partners's Gross Margin %

For the Engineering & Construction subindustry, Construction Partners'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.


Construction Partners's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Construction Partners's Gross Margin % distribution charts can be found below:

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



Construction Partners Gross Margin % Calculation

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

Construction Partners'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 )
=232.7 / 1643.324
=(Revenue - Cost of Goods Sold) / Revenue
=(1643.324 - 1410.637) / 1643.324
=14.16 %

Construction Partners'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 )
=75.8 / 484.885
=(Revenue - Cost of Goods Sold) / Revenue
=(484.885 - 409.128) / 484.885
=15.62 %

* 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.


Construction Partners  (FRA:CQY) 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

Construction Partners had a gross margin of 15.62% 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.


Construction Partners Gross Margin % Related Terms

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


Construction Partners Business Description

Traded in Other Exchanges
Address
290 Healthwest Drive, Suite 2, Dothan, AL, USA, 36303
Construction Partners Inc operates as a civil infrastructure company. It specializes in the construction and maintenance of roadways. The company through its subsidiaries, provides various products and services to both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports, and commercial and residential developments. Its operations consist of manufacturing and distributing hot mix asphalt, paving activities, including the construction of roadway base layers and application of asphalt pavement, site development, including the installation of utility and drainage systems, and others. The company has a single segment which predominantly consists of infrastructure and road construction, and operates across various states in the United States.

Construction Partners Headlines

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