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Eagle Materials (FRA:E5M) Gross Margin % : 32.32% (As of Dec. 2023)


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What is Eagle Materials Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Eagle Materials's Gross Profit for the three months ended in Dec. 2023 was €166 Mil. Eagle Materials's Revenue for the three months ended in Dec. 2023 was €512 Mil. Therefore, Eagle Materials's Gross Margin % for the quarter that ended in Dec. 2023 was 32.32%.


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

FRA:E5M' s Gross Margin % Range Over the Past 10 Years
Min: 20.26   Med: 24.8   Max: 31.12
Current: 31.12


During the past 13 years, the highest Gross Margin % of Eagle Materials was 31.12%. The lowest was 20.26%. And the median was 24.80%.

FRA:E5M's Gross Margin % is ranked better than
67.47% of 372 companies
in the Building Materials industry
Industry Median: 24.765 vs FRA:E5M: 31.12

Eagle Materials had a gross margin of 32.32% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Eagle Materials was 3.40% per year.


Eagle Materials Gross Margin % Historical Data

The historical data trend for Eagle Materials'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.

Eagle Materials Gross Margin % Chart

Eagle Materials Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.57 24.41 25.17 27.91 29.76

Eagle Materials Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 31.04 28.80 29.26 33.59 32.32

Competitive Comparison of Eagle Materials's Gross Margin %

For the Building Materials subindustry, Eagle Materials'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.


Eagle Materials's Gross Margin % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Eagle Materials's Gross Margin % distribution charts can be found below:

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



Eagle Materials Gross Margin % Calculation

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

Eagle Materials's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=597.1 / 2006.296
=(Revenue - Cost of Goods Sold) / Revenue
=(2006.296 - 1409.222) / 2006.296
=29.76 %

Eagle Materials's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=165.6 / 512.45
=(Revenue - Cost of Goods Sold) / Revenue
=(512.45 - 346.814) / 512.45
=32.32 %

* 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.


Eagle Materials  (FRA:E5M) 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

Eagle Materials had a gross margin of 32.32% for the quarter that ended in Dec. 2023 => 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.


Eagle Materials Gross Margin % Related Terms

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


Eagle Materials (FRA:E5M) Business Description

Traded in Other Exchanges
Address
5960 Berkshire Lane, Suite 900, Dallas, TX, USA, 75225
Eagle Materials Inc produces and sells construction products and building materials. Construction products include cement, slag, concrete, and aggregates and building materials include gypsum wallboard, and are sold to the construction and building industries. Basic materials used for oil and natural gas extraction include frac sand and oil well cement. The firm organizes itself into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments, and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments.

Eagle Materials (FRA:E5M) Headlines

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