Macau E&M Holding Ltd gross margin has been in long-term decline. The average rate of decline per year is -23.8%.
The historical rank and industry rank for Macau E&M Holding's Gross Margin % or its related term are showing as below:
HKSE:01408'
s Gross Margin % Range Over the Past 10 Years
Min: 5.76 Med: 21.98 Max: 26.94
Current: 7.85
During the past 8 years, the highestGross Margin % of Macau E&M Holding was 26.94%. The lowest was 5.76%. And the median was 21.98%.
HKSE:01408's Gross Margin % is ranked worse than 84% of 1675
companies
in the Construction industry
Industry Median: 20.17
vs HKSE:01408: 7.85
Macau E&M Holding had a gross margin of 19.19% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Macau E&M Holding was -23.80% per year.
Macau E&M Holding Gross Margin % Historical Data
The historical data trend for Macau E&M Holding'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.
Competitive Comparison of Macau E&M Holding's Gross Margin %
For the Engineering & Construction subindustry, Macau E&M Holding'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.
Macau E&M Holding's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Macau E&M Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Macau E&M Holding's Gross Margin % falls into.
* 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.
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
Macau E&M Holding had a gross margin of 19.19% for the quarter that ended in Dec. 2024 => No sustainable 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.
Macau E&M Holding Gross Margin % Related Terms
Thank you for viewing the detailed overview of Macau E&M Holding's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Macau E&M Holding Ltd is an Electrical & Mechanical engineering services works contractor in Macau. The company provides a comprehensive mix of E&M engineering services works based on the contractual needs of its customers in Macau, which involve a combination of the supply and/or installation of LV systems works; HVAC systems work; and ELV systems work, and the relevant testing and commissioning thereof, as well as management and monitoring of quality and delivery of its E&M engineering services, works. It also provides maintenance and repair services to its customers.
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