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Mota-Engil Africa NV (LTS:0R6D) Gross Margin % : 68.02% (As of Dec. 2014)


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What is Mota-Engil Africa NV Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mota-Engil Africa NV's Gross Profit for the six months ended in Dec. 2014 was €713 Mil. Mota-Engil Africa NV's Revenue for the six months ended in Dec. 2014 was €1,048 Mil. Therefore, Mota-Engil Africa NV's Gross Margin % for the quarter that ended in Dec. 2014 was 68.02%.


The historical rank and industry rank for Mota-Engil Africa NV's Gross Margin % or its related term are showing as below:

LTS:0R6D' s Gross Margin % Range Over the Past 10 Years
Min: 52.25   Med: 62.37   Max: 100
Current: 68.02


During the past 4 years, the highest Gross Margin % of Mota-Engil Africa NV was 100.00%. The lowest was 52.25%. And the median was 62.37%.

LTS:0R6D's Gross Margin % is not ranked
in the Construction industry.
Industry Median: 19.495 vs LTS:0R6D: 68.02

Mota-Engil Africa NV had a gross margin of 68.02% for the quarter that ended in Dec. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mota-Engil Africa NV was 0.00% per year.


Mota-Engil Africa NV Gross Margin % Historical Data

The historical data trend for Mota-Engil Africa NV'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.

Mota-Engil Africa NV Gross Margin % Chart

Mota-Engil Africa NV Annual Data
Trend Dec11 Dec12 Dec13 Dec14
Gross Margin %
52.25 56.72 - 68.02

Mota-Engil Africa NV Semi-Annual Data
Dec11 Dec12 Dec13 Dec14
Gross Margin % 52.25 56.72 - 68.02

Competitive Comparison of Mota-Engil Africa NV's Gross Margin %

For the Engineering & Construction subindustry, Mota-Engil Africa NV'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.


Mota-Engil Africa NV's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Mota-Engil Africa NV's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mota-Engil Africa NV's Gross Margin % falls into.



Mota-Engil Africa NV Gross Margin % Calculation

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

Mota-Engil Africa NV's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=712.9 / 1048.065
=(Revenue - Cost of Goods Sold) / Revenue
=(1048.065 - 335.207) / 1048.065
=68.02 %

Mota-Engil Africa NV's Gross Margin for the quarter that ended in Dec. 2014 is calculated as


Gross Margin % (Q: Dec. 2014 )=Gross Profit (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=712.9 / 1048.065
=(Revenue - Cost of Goods Sold) / Revenue
=(1048.065 - 335.207) / 1048.065
=68.02 %

* 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.


Mota-Engil Africa NV  (LTS:0R6D) 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

Mota-Engil Africa NV had a gross margin of 68.02% for the quarter that ended in Dec. 2014 => Durable 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.


Mota-Engil Africa NV Gross Margin % Related Terms

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Mota-Engil Africa NV (LTS:0R6D) Business Description

Traded in Other Exchanges
N/A
Address
Mota-Engil Africa NV was incorporated on October 31, 2012 by a notarial deed of incorporation as a private company with limited liability under the laws of the Netherlands. The Company is a provider of integrated engineering and construction services. The Company also provides other services, across its target markets in Sub-Saharan Africa. Its portfolio of services ranges from Engineering and Construction which includes infrastructure such as roads, railways, bridges and dams, mining services, civil construction works and real estate construction and services, Logistics which includes ports and other infrastructure management and Environment and Services which includes waste management and collection and water treatment and distribution. The Company currently operates in ten countries comprising its primary markets of Angola, Malawi and Mozambique as well as its other markets of Cape Verde, Ghana, São Tomé and Príncipe, South Africa, Uganda, Zambia and Zimbabwe.

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