Cerved Group SpA (MEX:CERVN) Gross Margin %: -10.66% (As of Sep. 2021)


What is Cerved Group SpA Gross Margin %?

Cerved Group SpA MEX:CERVN 8 Gross Margin % is -10.66% as of Sep. 2021. GuruFocus rates MEX:CERVN with a GF Score™ of 8/100. The stock has 8 warning signs investors should review.

Gross Margin % is calculated as gross profit divided by its revenue. Cerved Group SpA's Gross Profit for the three months ended in Sep. 2021 was MXN-282.93 Mil. Cerved Group SpA's Revenue for the three months ended in Sep. 2021 was MXN2,653.13 Mil. Therefore, Cerved Group SpA's Gross Margin % for the quarter that ended in Sep. 2021 was -10.66%.

Warning Sign:

Cerved Group SpA gross margin has been in long-term decline. The average rate of decline per year is -2%.


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

MEX:CERVN' s Gross Margin % Range Over the Past 10 Years
Min: 49.68   Med: 56.62   Max: 73
Current: 47.01


During the past 11 years, the highest Gross Margin % of Cerved Group SpA was 73.00%. The lowest was 49.68%. And the median was 56.62%.

MEX:CERVN's Gross Margin % is not ranked
in the Capital Markets industry.
Industry Median: 49.63 vs MEX:CERVN: 47.01

Cerved Group SpA had a gross margin of -10.66% for the quarter that ended in Sep. 2021 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cerved Group SpA was -2.00% per year.


Cerved Group SpA  (MEX:CERVN) 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

Cerved Group SpA had a gross margin of -10.66% for the quarter that ended in Sep. 2021 => 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.


Cerved Group SpA Gross Margin % Related Terms


Cerved Group SpA Gross Margin % Historical Data

* Premium members only.

The historical data trend for Cerved Group SpA'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.

Cerved Group SpA Gross Margin % Chart

Cerved Group SpA Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.53 56.62 55.93 55.77 53.48

Cerved Group SpA Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 16.50 82.79 42.41 63.07 -10.66

MEX:CERVN vs VALU: Gross Margin % Comparison

For the Financial Data & Stock Exchanges subindustry, Cerved Group SpA'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.


Cerved Group SpA Gross Margin % vs Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Cerved Group SpA's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Cerved Group SpA's Gross Margin % falls into.



Cerved Group SpA Gross Margin % Calculation

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

Cerved Group SpA's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=6276.3 / 11736.256
=(Revenue - Cost of Goods Sold) / Revenue
=(11736.256 - 5459.943) / 11736.256
=53.48 %

Cerved Group SpA's Gross Margin for the quarter that ended in Sep. 2021 is calculated as


Gross Margin % (Q: Sep. 2021 )=Gross Profit (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=-282.9 / 2653.127
=(Revenue - Cost of Goods Sold) / Revenue
=(2653.127 - 2936.06) / 2653.127
=-10.66 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of -10.66% mean?
Cerved Group SpA (MEX:CERVN) has a Gross Margin % of -10.66% as of Sep. 2021. Gross margin is the ratio of total gross profit to net sales. View historical data on Cerved Group SpA and its competitors. Over the past decade, Cerved Group SpA's Gross Margin % has ranged from 49.68 to 73.00.
Is Cerved Group SpA's Gross Margin % too high?
Cerved Group SpA's current Gross Margin % is -10.66%. Over the past 10 years, this metric has ranged from a low of 49.68 to a high of 73.00. Overall, Cerved Group SpA has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Cerved Group SpA's Gross Margin % compare to VALU?
Cerved Group SpA's Gross Margin % of -10.66% can be compared against companies in the Capital Markets industry. The industry median Gross Margin % is 49.63. Historically, Cerved Group SpA's own Gross Margin % has ranged from 49.68 to 73.00 over the past decade. 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.63, based on 620 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 Cerved Group SpA and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cerved Group SpA's current Gross Margin % is -10.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cerved Group SpA stock overvalued right now?
Cerved Group SpA (MEX:CERVN) has a current Gross Margin % of -10.66%. The current Gross Margin % is -10.66%. Cerved Group SpA's overall GF Score™ is 8/100 with 8 warning signs to review. 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 Cerved Group SpA (MEX:CERVN), the current Gross Margin % is -10.66% as of Sep. 2021. 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.

Cerved Group SpA Business Description

Address Via Dell’Unione Europea, 6A, 6B, San Donato Milanese, Milan, ITA, 20097
Cerved Group SpA is a holding company that owns the Cerved Group, an Italian credit information service provider. It operates through three segments. The Risk Management segment, which accounts for the majority of the Cerved Group's revenue, offers products and services that help businesses and financial institutions to assess the credit status of their customers, business counterparties, and potential customers. The Growth Services segment offers information and analyses that help customers to understand the target market and regions, develop businesses, and improve customer satisfaction. The credit management segment assesses and manages troubled receivables and assets. It generates the majority of its revenue from the Italian domestic market.