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Gagfah (Gagfah) Gross Margin % : 63.04% (As of Sep. 2015)


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What is Gagfah Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gagfah's Gross Profit for the three months ended in Sep. 2015 was $142 Mil. Gagfah's Revenue for the three months ended in Sep. 2015 was $225 Mil. Therefore, Gagfah's Gross Margin % for the quarter that ended in Sep. 2015 was 63.04%.


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


GGFHF's Gross Margin % is not ranked *
in the Real Estate industry.
Industry Median: 36.56
* Ranked among companies with meaningful Gross Margin % only.

Gagfah had a gross margin of 63.04% for the quarter that ended in Sep. 2015 => Durable competitive advantage

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


Gagfah Gross Margin % Historical Data

The historical data trend for Gagfah'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.

Gagfah Gross Margin % Chart

Gagfah Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 50.24 34.99 38.94 39.88 38.76

Gagfah Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 49.08 13.09 59.13 58.24 63.04

Competitive Comparison of Gagfah's Gross Margin %

For the Real Estate Services subindustry, Gagfah'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.


Gagfah's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Gagfah's Gross Margin % distribution charts can be found below:

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



Gagfah Gross Margin % Calculation

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

Gagfah's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=506.7 / 1307.152
=(Revenue - Cost of Goods Sold) / Revenue
=(1307.152 - 800.494) / 1307.152
=38.76 %

Gagfah's Gross Margin for the quarter that ended in Sep. 2015 is calculated as


Gross Margin % (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=141.6 / 224.691
=(Revenue - Cost of Goods Sold) / Revenue
=(224.691 - 83.052) / 224.691
=63.04 %

* 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.


Gagfah  (OTCPK:GGFHF) 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

Gagfah had a gross margin of 63.04% for the quarter that ended in Sep. 2015 => 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.


Gagfah Gross Margin % Related Terms

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Gagfah (Gagfah) Business Description

Traded in Other Exchanges
N/A
Address
Gagfah SA is a residential real estate company. The Company and its subsidiaries owns and manages geographically diversified real estate portfolio in Germany. It operates in two business segments, Real Estate Management and Real Estate Sales. As of 31 December 2013, the Company owns a total of more than 143,000 units.

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