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Cellcom Israel (FRA:F5U) Gross Margin % : 29.57% (As of Mar. 2024)


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What is Cellcom Israel Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cellcom Israel's Gross Profit for the three months ended in Mar. 2024 was €83 Mil. Cellcom Israel's Revenue for the three months ended in Mar. 2024 was €281 Mil. Therefore, Cellcom Israel's Gross Margin % for the quarter that ended in Mar. 2024 was 29.57%.


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

FRA:F5U' s Gross Margin % Range Over the Past 10 Years
Min: 23.83   Med: 29.95   Max: 40.33
Current: 30.31


During the past 13 years, the highest Gross Margin % of Cellcom Israel was 40.33%. The lowest was 23.83%. And the median was 29.95%.

FRA:F5U's Gross Margin % is ranked worse than
74.36% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.84 vs FRA:F5U: 30.31

Cellcom Israel had a gross margin of 29.57% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Cellcom Israel was 2.60% per year.


Cellcom Israel Gross Margin % Historical Data

The historical data trend for Cellcom Israel'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.

Cellcom Israel Gross Margin % Chart

Cellcom Israel Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.51 23.83 27.73 29.44 30.45

Cellcom Israel Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 30.06 31.50 32.18 28.08 29.57

Competitive Comparison of Cellcom Israel's Gross Margin %

For the Telecom Services subindustry, Cellcom Israel'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.


Cellcom Israel's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Cellcom Israel's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Cellcom Israel's Gross Margin % falls into.



Cellcom Israel Gross Margin % Calculation

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

Cellcom Israel'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 )
=329.4 / 1082.069
=(Revenue - Cost of Goods Sold) / Revenue
=(1082.069 - 752.626) / 1082.069
=30.45 %

Cellcom Israel's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=83.2 / 281.22
=(Revenue - Cost of Goods Sold) / Revenue
=(281.22 - 198.06) / 281.22
=29.57 %

* 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.


Cellcom Israel  (FRA:F5U) 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

Cellcom Israel had a gross margin of 29.57% 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.


Cellcom Israel Gross Margin % Related Terms

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Cellcom Israel (FRA:F5U) Business Description

Traded in Other Exchanges
Address
10 Hagavish Street, Netanya, ISR, 4250708
Cellcom Israel Ltd is the largest wireless provider in Israel and holds about one third of the market. The company offers basic voice services and data services such as Web browsing and music downloads. Cellcom is also launching a next-generation wireless service that supports higher data capacity. The company went public in February 2007, and its largest shareholder, Discount Investment, owns about 47% of its shares.

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