Peab AB (LTS:0MHT) Gross Margin % : 3.86% (As of Mar. 2024)

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What is Peab AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Peab AB's Gross Profit for the three months ended in Mar. 2024 was kr442 Mil. Peab AB's Revenue for the three months ended in Mar. 2024 was kr11,450 Mil. Therefore, Peab AB's Gross Margin % for the quarter that ended in Mar. 2024 was 3.86%.

Warning Sign:

Peab AB gross margin has been in long-term decline. The average rate of decline per year is -3.1%.

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

LTS:0MHT' s Gross Margin % Range Over the Past 10 Years
Min: 7.27 Med: 9.49 Max: 10.64
Current: 8.39

During the past 13 years, the highest Gross Margin % of Peab AB was 10.64%. The lowest was 7.27%. And the median was 9.49%.

LTS:0MHT's Gross Margin % is ranked worse than
80.66% of 1613 companies
in the Construction industry
Industry Median: 19.23 vs LTS:0MHT: 8.39

Peab AB had a gross margin of 3.86% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Peab AB was -3.10% per year.

Peab AB Gross Margin % Historical Data

The historical data trend for Peab AB'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.

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Peab AB Gross Margin % Chart

Peab AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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10.64

10.26

10.01

9.02

8.83

Peab AB Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															6.47	12.16	9.20	7.16	3.86

Competitive Comparison of Peab AB's Gross Margin %

For the Engineering & Construction subindustry, Peab AB'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.

Peab AB's Gross Margin % Distribution in the Construction Industry

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

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

Peab AB Gross Margin % Calculation

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

Peab AB's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	5417	/	61350
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(61350 - 55933)	/	61350
	=	8.83 %

Peab AB'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 )
	=	442	/	11450
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11450 - 11008)	/	11450
	=	3.86 %

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.

Peab AB (LTS:0MHT) 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

Peab AB had a gross margin of 3.86% 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.

Peab AB Gross Margin % Related Terms

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Peab AB (LTS:0MHT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Peab AB (LTS:0MHT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PEAB B:Sweden PEKB:Germany

Address

Margretetorpsvagen 84, Forslov, SWE, SE-269 73

Website

https://www.peab.com

Peab AB is one of the leading Nordic construction and civil engineering companies. It builds offices around the region and contributes to all stages of construction. Many projects are related to housing, transportation, commercial property, and building materials. A network of subcontractors and external suppliers helps plan and build innovative systems for projects. Peab operates in four business areas: construction (roughly half of total revenue), civil engineering, industry, and project development. It uses technical expertise and input from customers to complete projects and deliver customized solutions. The majority of sales come from Sweden, and the company has the capacity to complete smaller local projects as well as more complex construction projects.

Peab AB (LTS:0MHT) Headlines

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