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Evergreen Construction (ROCO:5506) Gross Margin % : -0.92% (As of Sep. 2015)


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What is Evergreen Construction Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Evergreen Construction's Gross Profit for the three months ended in Sep. 2015 was NT$-7.76 Mil. Evergreen Construction's Revenue for the three months ended in Sep. 2015 was NT$839.92 Mil. Therefore, Evergreen Construction's Gross Margin % for the quarter that ended in Sep. 2015 was -0.92%.


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

ROCO:5506' s Gross Margin % Range Over the Past 10 Years
Min: -25.57   Med: 4.3   Max: 7.4
Current: -24.36


During the past 6 years, the highest Gross Margin % of Evergreen Construction was 7.40%. The lowest was -25.57%. And the median was 4.30%.

ROCO:5506's Gross Margin % is not ranked
in the Construction industry.
Industry Median: 19.17 vs ROCO:5506: -24.36

Evergreen Construction had a gross margin of -0.92% for the quarter that ended in Sep. 2015 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Evergreen Construction was 0.00% per year.


Evergreen Construction Gross Margin % Historical Data

The historical data trend for Evergreen Construction'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.

Evergreen Construction Gross Margin % Chart

Evergreen Construction Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial 7.40 3.81 4.78 5.07 -25.57

Evergreen Construction Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 1.65 -324.56 2.24 2.30 -0.92

Competitive Comparison of Evergreen Construction's Gross Margin %

For the Engineering & Construction subindustry, Evergreen Construction'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.


Evergreen Construction's Gross Margin % Distribution in the Construction Industry

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

* The bar in red indicates where Evergreen Construction's Gross Margin % falls into.



Evergreen Construction Gross Margin % Calculation

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

Evergreen Construction'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 )
=-792.9 / 3100.571
=(Revenue - Cost of Goods Sold) / Revenue
=(3100.571 - 3893.483) / 3100.571
=-25.57 %

Evergreen Construction's Gross Margin for the quarter that ended in Sep. 2015 is calculated as


Gross Margin % (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=-7.8 / 839.916
=(Revenue - Cost of Goods Sold) / Revenue
=(839.916 - 847.672) / 839.916
=-0.92 %

* 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.


Evergreen Construction  (ROCO:5506) 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

Evergreen Construction had a gross margin of -0.92% for the quarter that ended in Sep. 2015 => 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.


Evergreen Construction Gross Margin % Related Terms

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Evergreen Construction (ROCO:5506) Business Description

Traded in Other Exchanges
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Address
Evergreen Construction Corp is engaged in civil engineering, construction & factory projects. It undertakes projects of bridges, roads, ports, tunnels & water terminals, residential & office buildings, hotels, hospitals & special building structures etc.

Evergreen Construction (ROCO:5506) Headlines

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