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Fernheizwerk Neukoelln AG (FRA:FHW) Gross Margin % : 40.10% (As of Jun. 2024)


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What is Fernheizwerk Neukoelln AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fernheizwerk Neukoelln AG's Gross Profit for the six months ended in Jun. 2024 was €14.00 Mil. Fernheizwerk Neukoelln AG's Revenue for the six months ended in Jun. 2024 was €34.92 Mil. Therefore, Fernheizwerk Neukoelln AG's Gross Margin % for the quarter that ended in Jun. 2024 was 40.10%.

Warning Sign:

Fernheizwerk Neukoelln AG gross margin has been in long-term decline. The average rate of decline per year is -14.6%.


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

FRA:FHW' s Gross Margin % Range Over the Past 10 Years
Min: 21.36   Med: 58.2   Max: 63.43
Current: 39.69


During the past 13 years, the highest Gross Margin % of Fernheizwerk Neukoelln AG was 63.43%. The lowest was 21.36%. And the median was 58.20%.

FRA:FHW's Gross Margin % is ranked better than
54.85% of 392 companies
in the Utilities - Independent Power Producers industry
Industry Median: 34.885 vs FRA:FHW: 39.69

Fernheizwerk Neukoelln AG had a gross margin of 40.10% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fernheizwerk Neukoelln AG was -14.60% per year.


Fernheizwerk Neukoelln AG Gross Margin % Historical Data

The historical data trend for Fernheizwerk Neukoelln AG'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.

Fernheizwerk Neukoelln AG Gross Margin % Chart

Fernheizwerk Neukoelln AG 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 55.78 58.77 45.49 21.36 35.88

Fernheizwerk Neukoelln AG 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 27.95 16.31 33.52 39.25 40.10

Competitive Comparison of Fernheizwerk Neukoelln AG's Gross Margin %

For the Utilities - Independent Power Producers subindustry, Fernheizwerk Neukoelln AG'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.


Fernheizwerk Neukoelln AG's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Fernheizwerk Neukoelln AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Fernheizwerk Neukoelln AG's Gross Margin % falls into.



Fernheizwerk Neukoelln AG Gross Margin % Calculation

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

Fernheizwerk Neukoelln AG'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 )
=28 / 78.084
=(Revenue - Cost of Goods Sold) / Revenue
=(78.084 - 50.071) / 78.084
=35.88 %

Fernheizwerk Neukoelln AG'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 )
=14 / 34.915
=(Revenue - Cost of Goods Sold) / Revenue
=(34.915 - 20.914) / 34.915
=40.10 %

* 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.


Fernheizwerk Neukoelln AG  (FRA:FHW) 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

Fernheizwerk Neukoelln AG had a gross margin of 40.10% 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.


Fernheizwerk Neukoelln AG Gross Margin % Related Terms

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Fernheizwerk Neukoelln AG Business Description

Traded in Other Exchanges
Address
Weigandufer 49, Berlin, DEU, D-12059
Fernheizwerk Neukoelln AG is a German company which offers heating services to the city of Berlin. The company operates a grid of steam and hot water pipes throughout the city.

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