NMAKF (NemakB de CV) Gross Margin % : 12.98% (As of Sep. 2024)

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What is NemakB de CV Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NemakB de CV's Gross Profit for the three months ended in Sep. 2024 was $159 Mil. NemakB de CV's Revenue for the three months ended in Sep. 2024 was $1,224 Mil. Therefore, NemakB de CV's Gross Margin % for the quarter that ended in Sep. 2024 was 12.98%.

Warning Sign:

Nemak SAB de CV gross margin has been in long-term decline. The average rate of decline per year is -6.7%.

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

NMAKF' s Gross Margin % Range Over the Past 10 Years
Min: 10.76 Med: 14.51 Max: 17.54
Current: 11.51

During the past 12 years, the highest Gross Margin % of NemakB de CV was 17.54%. The lowest was 10.76%. And the median was 14.51%.

NMAKF's Gross Margin % is ranked worse than
79.83% of 1279 companies
in the Vehicles & Parts industry
Industry Median: 20.04 vs NMAKF: 11.51

NemakB de CV had a gross margin of 12.98% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NemakB de CV was -6.70% per year.

NemakB de CV Gross Margin % Historical Data

The historical data trend for NemakB de CV'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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NemakB de CV Gross Margin % Chart

NemakB de CV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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14.33

12.03

12.39

10.81

10.76

NemakB de CV Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															12.41	8.26	11.62	12.65	12.98

Competitive Comparison of NemakB de CV's Gross Margin %

For the Auto Parts subindustry, NemakB de CV'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.

NemakB de CV's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, NemakB de CV's Gross Margin % distribution charts can be found below:

* The bar in red indicates where NemakB de CV's Gross Margin % falls into.

NemakB de CV Gross Margin % Calculation

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

NemakB de CV'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 )
	=	537.1	/	4993.358
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4993.358 - 4456.287)	/	4993.358
	=	10.76 %

NemakB de CV's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	159	/	1224.316
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1224.316 - 1065.35)	/	1224.316
	=	12.98 %

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.

NemakB de CV (OTCPK:NMAKF) 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

NemakB de CV had a gross margin of 12.98% for the quarter that ended in Sep. 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.

NemakB de CV Gross Margin % Related Terms

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NemakB de CV Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nemak SAB de CV (OTCPK:NMAKF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

NEMAKA:Mexico

Address

Libramiento Arco Vial Km. 3.8, Garcia, Mexico, NL, MEX, 66017

Website

https://www.nemak.com

Nemak SAB de CV is a Mexican company that is active in the automotive industry. The company is engaged in the production of complex aluminum components for powertrain and body structure applications. Its product portfolio includes cylinder heads, engine blocks, transmission parts, structural parts, cargo floor reinforcement, reinforcement side members, transmission housing, shock tower, cross member, support bracket, frame rail, and other components. The company has business operations in Canada, the United States, Mexico, Brazil, Spain, Germany, Poland, Russia, India, China, and others. Nemak earns nearly half of its revenue from North America.