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Nexus Infrastructure (LSE:NEXS) Gross Margin % : 13.54% (As of Mar. 2024)


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What is Nexus Infrastructure Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nexus Infrastructure's Gross Profit for the six months ended in Mar. 2024 was £3.50 Mil. Nexus Infrastructure's Revenue for the six months ended in Mar. 2024 was £25.84 Mil. Therefore, Nexus Infrastructure's Gross Margin % for the quarter that ended in Mar. 2024 was 13.54%.

Warning Sign:

Nexus Infrastructure PLC gross margin has been in long-term decline. The average rate of decline per year is -20.1%.


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

LSE:NEXS' s Gross Margin % Range Over the Past 10 Years
Min: 5.84   Med: 15.82   Max: 20.48
Current: 5.84


During the past 10 years, the highest Gross Margin % of Nexus Infrastructure was 20.48%. The lowest was 5.84%. And the median was 15.82%.

LSE:NEXS's Gross Margin % is ranked worse than
86.89% of 1617 companies
in the Construction industry
Industry Median: 19.41 vs LSE:NEXS: 5.84

Nexus Infrastructure had a gross margin of 13.54% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nexus Infrastructure was -20.10% per year.


Nexus Infrastructure Gross Margin % Historical Data

The historical data trend for Nexus Infrastructure'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.

Nexus Infrastructure Gross Margin % Chart

Nexus Infrastructure Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.00 13.32 7.75 10.07 6.73

Nexus Infrastructure Semi-Annual Data
Sep14 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 11.05 9.19 11.29 0.56 13.54

Competitive Comparison of Nexus Infrastructure's Gross Margin %

For the Engineering & Construction subindustry, Nexus Infrastructure'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.


Nexus Infrastructure's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Nexus Infrastructure's Gross Margin % distribution charts can be found below:

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



Nexus Infrastructure Gross Margin % Calculation

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

Nexus Infrastructure's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=6 / 88.691
=(Revenue - Cost of Goods Sold) / Revenue
=(88.691 - 82.719) / 88.691
=6.73 %

Nexus Infrastructure's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=3.5 / 25.838
=(Revenue - Cost of Goods Sold) / Revenue
=(25.838 - 22.339) / 25.838
=13.54 %

* 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.


Nexus Infrastructure  (LSE:NEXS) 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

Nexus Infrastructure had a gross margin of 13.54% for the quarter that ended in Mar. 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.


Nexus Infrastructure Gross Margin % Related Terms

Thank you for viewing the detailed overview of Nexus Infrastructure's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Nexus Infrastructure (LSE:NEXS) Business Description

Traded in Other Exchanges
N/A
Address
Nexus Park, Avenue East, Skyline 120, Great Notley, Braintree, Essex, GBR, CM77 7AL
Nexus Infrastructure PLC engages in the provision of infrastructure services in the house-building and commercial sectors in the United Kingdom. The Group business includes Tamdown, a Civil Engineering business, that provides a range of civil engineering and infrastructure services to the UK housebuilding sector. These services include earthworks, building highways, substructures, and basements, and installing sustainable drainage systems. It operates in the South East of England and London.

Nexus Infrastructure (LSE:NEXS) Headlines