Reliance Worldwide Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Reliance Worldwide's Gross Margin % or its related term are showing as below:
RLLWF'
s Gross Margin % Range Over the Past 10 Years
Min: 38.45 Med: 41.13 Max: 44.03
Current: 39.24
During the past 8 years, the highestGross Margin % of Reliance Worldwide was 44.03%. The lowest was 38.45%. And the median was 41.13%.
RLLWF's Gross Margin % is ranked better than 82.63% of 1664
companies
in the Construction industry
Industry Median: 20.05
vs RLLWF: 39.24
Reliance Worldwide had a gross margin of 39.34% for the quarter that ended in Jun. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Reliance Worldwide was -1.90% per year.
Reliance Worldwide Gross Margin % Historical Data
The historical data trend for Reliance Worldwide'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.
Competitive Comparison of Reliance Worldwide's Gross Margin %
For the Building Products & Equipment subindustry, Reliance Worldwide'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.
Reliance Worldwide's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Reliance Worldwide's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reliance Worldwide's Gross Margin % falls into.
* 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.
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
Reliance Worldwide had a gross margin of 39.34% for the quarter that ended in Jun. 2024 => Competition eroding margins
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.
Reliance Worldwide Gross Margin % Related Terms
Thank you for viewing the detailed overview of Reliance Worldwide's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the us, which comprises about three fourths of our midcycle EBITDA estimates. Other segments include EMEA and the Asia-Pacific, which contribute about 20% and less than 10%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the us and John Guest in the United Kingdom. Reliance's primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.
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