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Al Enmaa Real Estate Co (KUW:ERESCO) Gross Margin % : 32.62% (As of Apr. 2024)


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What is Al Enmaa Real Estate Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Al Enmaa Real Estate Co's Gross Profit for the three months ended in Apr. 2024 was KWD0.89 Mil. Al Enmaa Real Estate Co's Revenue for the three months ended in Apr. 2024 was KWD2.72 Mil. Therefore, Al Enmaa Real Estate Co's Gross Margin % for the quarter that ended in Apr. 2024 was 32.62%.

Warning Sign:

Al Enmaa Real Estate Co gross margin has been in long-term decline. The average rate of decline per year is -7.9%.


The historical rank and industry rank for Al Enmaa Real Estate Co's Gross Margin % or its related term are showing as below:

KUW:ERESCO' s Gross Margin % Range Over the Past 10 Years
Min: 3.2   Med: 10.83   Max: 29.63
Current: 26.23


During the past 13 years, the highest Gross Margin % of Al Enmaa Real Estate Co was 29.63%. The lowest was 3.20%. And the median was 10.83%.

KUW:ERESCO's Gross Margin % is ranked worse than
65.66% of 1663 companies
in the Real Estate industry
Industry Median: 35.85 vs KUW:ERESCO: 26.23

Al Enmaa Real Estate Co had a gross margin of 32.62% for the quarter that ended in Apr. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Al Enmaa Real Estate Co was -7.90% per year.


Al Enmaa Real Estate Co Gross Margin % Historical Data

The historical data trend for Al Enmaa Real Estate Co'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.

Al Enmaa Real Estate Co Gross Margin % Chart

Al Enmaa Real Estate Co Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.81 26.69 3.20 10.41 29.63

Al Enmaa Real Estate Co Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
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 39.41 24.50 18.40 27.29 32.62

Competitive Comparison of Al Enmaa Real Estate Co's Gross Margin %

For the Real Estate Services subindustry, Al Enmaa Real Estate Co'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.


Al Enmaa Real Estate Co's Gross Margin % Distribution in the Real Estate Industry

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

* The bar in red indicates where Al Enmaa Real Estate Co's Gross Margin % falls into.



Al Enmaa Real Estate Co Gross Margin % Calculation

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

Al Enmaa Real Estate Co's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )=Gross Profit (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=2.4 / 8.099
=(Revenue - Cost of Goods Sold) / Revenue
=(8.099 - 5.699) / 8.099
=29.63 %

Al Enmaa Real Estate Co's Gross Margin for the quarter that ended in Apr. 2024 is calculated as


Gross Margin % (Q: Apr. 2024 )=Gross Profit (Q: Apr. 2024 ) / Revenue (Q: Apr. 2024 )
=0.9 / 2.722
=(Revenue - Cost of Goods Sold) / Revenue
=(2.722 - 1.834) / 2.722
=32.62 %

* 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.


Al Enmaa Real Estate Co  (KUW:ERESCO) 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

Al Enmaa Real Estate Co had a gross margin of 32.62% for the quarter that ended in Apr. 2024 => 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.


Al Enmaa Real Estate Co Gross Margin % Related Terms

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Al Enmaa Real Estate Co Business Description

Traded in Other Exchanges
N/A
Address
Al-Enmaa Tower, Abdullah Al-Mubarak Street, P.O. Box 24544, 1st, 2nd and Mezzanine Floors, Opposite Scientific Museum, Mirqab, Kuwait, KWT, 13160
Al Enmaa Real Estate Co is a real estate development and investment company. It is organized into the following operating segments namely Construction, Services Rendered, Real Estate, and Investments. The Services Rendered segment undertakes contracts to construct buildings and maintenance of mechanical and electrical spare parts and building materials. It generates maximum revenue from the Services Rendered segment.

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