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Daisy Group (FRA:PWH1) Gross Margin % : 39.72% (As of Sep. 2014)


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What is Daisy Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Daisy Group's Gross Profit for the six months ended in Sep. 2014 was €85.1 Mil. Daisy Group's Revenue for the six months ended in Sep. 2014 was €214.3 Mil. Therefore, Daisy Group's Gross Margin % for the quarter that ended in Sep. 2014 was 39.72%.


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

FRA:PWH1' s Gross Margin % Range Over the Past 10 Years
Min: 20.81   Med: 38.64   Max: 47.43
Current: 39.99


During the past 13 years, the highest Gross Margin % of Daisy Group was 47.43%. The lowest was 20.81%. And the median was 38.64%.

FRA:PWH1's Gross Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 49.5 vs FRA:PWH1: 39.99

Daisy Group had a gross margin of 39.72% for the quarter that ended in Sep. 2014 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Daisy Group was 0.00% per year.


Daisy Group Gross Margin % Historical Data

The historical data trend for Daisy Group'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.

Daisy Group Gross Margin % Chart

Daisy Group Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Mar10 Mar11 Mar12 Mar13 Mar14
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.39 38.88 38.11 36.91 39.49

Daisy Group Semi-Annual Data
Dec03 Jun04 Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
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 36.35 37.48 38.71 40.25 39.72

Competitive Comparison of Daisy Group's Gross Margin %

For the Telecom Services subindustry, Daisy Group'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.


Daisy Group's Gross Margin % Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Daisy Group's Gross Margin % falls into.



Daisy Group Gross Margin % Calculation

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

Daisy Group's Gross Margin for the fiscal year that ended in Mar. 2014 is calculated as

Gross Margin % (A: Mar. 2014 )=Gross Profit (A: Mar. 2014 ) / Revenue (A: Mar. 2014 )
=167.3 / 423.562
=(Revenue - Cost of Goods Sold) / Revenue
=(423.562 - 256.292) / 423.562
=39.49 %

Daisy Group's Gross Margin for the quarter that ended in Sep. 2014 is calculated as


Gross Margin % (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=85.1 / 214.348
=(Revenue - Cost of Goods Sold) / Revenue
=(214.348 - 129.203) / 214.348
=39.72 %

* 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.


Daisy Group  (FRA:PWH1) 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

Daisy Group had a gross margin of 39.72% for the quarter that ended in Sep. 2014 => 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.


Daisy Group Gross Margin % Related Terms

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Daisy Group (FRA:PWH1) Business Description

Traded in Other Exchanges
N/A
Address
Daisy Group PLC and its subsidiaries provide telecommunication and managed services to UK SME and mid-market businesses. It provides a combined product set including access, hosting, voice, managed services and mobile telephony. The Group's segments comprise Daisy Retail, Daisy Wholesale, and central costs. The Daisy Retail segment engages in the provision of integrated voice and data services to the small medium business market, The Daisy Wholesale segment supplies partners with billing, provisioning and business software solutions in addition to voice, lines and data services. Daisy Distribution provides a full range of mobile handsets and airtime tariffs from O2, Vodafone, Orange and T-Mobile via a dealer network and the Central segment consists of unallocated central activities.

Daisy Group (FRA:PWH1) Headlines

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