The historical rank and industry rank for African Dawn Capital's Gross Margin % or its related term are showing as below:
JSE:ADW's Gross Margin % is not ranked *
in the Credit Services industry.
Industry Median: 51.88 * Ranked among companies with meaningful Gross Margin % only.
African Dawn Capital had a gross margin of -53.83% for the quarter that ended in Aug. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for African Dawn Capital was 0.00% per year.
African Dawn Capital (JSE:ADW) 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
African Dawn Capital had a gross margin of -53.83% for the quarter that ended in Aug. 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.
African Dawn Capital Gross Margin % Related Terms
African Dawn Capital Gross Margin % Historical Data
* Premium members only.
The historical data trend for African Dawn Capital'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.
For the Credit Services subindustry, African Dawn Capital'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.
African Dawn Capital Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, African Dawn Capital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where African Dawn Capital'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.
African Dawn Capital (JSE:ADW) has a Gross Margin % of -53.83% as of Aug. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on African Dawn Capital and its competitors.
Is African Dawn Capital's Gross Margin % too high?
African Dawn Capital's current Gross Margin % is -53.83%. Overall, African Dawn Capital has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does African Dawn Capital's Gross Margin % compare to V and MA?
African Dawn Capital's Gross Margin % of -53.83% can be compared against companies in the Credit Services industry. The industry median Gross Margin % is 51.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on African Dawn Capital and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Dawn Capital's current Gross Margin % is -53.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Dawn Capital stock overvalued right now?
African Dawn Capital (JSE:ADW) has a current Gross Margin % of -53.83%. The current Gross Margin % is -53.83%. African Dawn Capital's overall GF Score™ is 11/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For African Dawn Capital (JSE:ADW), the current Gross Margin % is -53.83% as of Aug. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
African Dawn Capital Ltd operates as a microfinance company. The company's operating segment includes Investment advisory and investment management, Microfinance, and Head Office segment. It generates maximum revenue from the Microfinance segment. Geographically, the company operates only in South Africa.
11GF Score
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