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SHS Holdings (SGX:566) Gross Margin % : 11.99% (As of Jun. 2024)


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What is SHS Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SHS Holdings's Gross Profit for the six months ended in Jun. 2024 was S$3.90 Mil. SHS Holdings's Revenue for the six months ended in Jun. 2024 was S$32.55 Mil. Therefore, SHS Holdings's Gross Margin % for the quarter that ended in Jun. 2024 was 11.99%.

Warning Sign:

SHS Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -2%.


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

SGX:566' s Gross Margin % Range Over the Past 10 Years
Min: 11.22   Med: 20.9   Max: 29.21
Current: 12.4


During the past 13 years, the highest Gross Margin % of SHS Holdings was 29.21%. The lowest was 11.22%. And the median was 20.90%.

SGX:566's Gross Margin % is ranked worse than
85.99% of 2948 companies
in the Industrial Products industry
Industry Median: 26.84 vs SGX:566: 12.40

SHS Holdings had a gross margin of 11.99% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SHS Holdings was -2.00% per year.


SHS Holdings Gross Margin % Historical Data

The historical data trend for SHS Holdings'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.

SHS Holdings Gross Margin % Chart

SHS Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.03 19.93 16.88 21.86 15.73

SHS Holdings Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 20.59 22.98 19.08 12.72 11.99

Competitive Comparison of SHS Holdings's Gross Margin %

For the Metal Fabrication subindustry, SHS Holdings'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.


SHS Holdings's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, SHS Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where SHS Holdings's Gross Margin % falls into.


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SHS Holdings Gross Margin % Calculation

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

SHS Holdings'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 )
=12.9 / 82.204
=(Revenue - Cost of Goods Sold) / Revenue
=(82.204 - 69.27) / 82.204
=15.73 %

SHS Holdings's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=3.9 / 32.551
=(Revenue - Cost of Goods Sold) / Revenue
=(32.551 - 28.648) / 32.551
=11.99 %

* 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.


SHS Holdings  (SGX:566) 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

SHS Holdings had a gross margin of 11.99% for the quarter that ended in Jun. 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.


SHS Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of SHS Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


SHS Holdings Business Description

Traded in Other Exchanges
N/A
Address
19 Tuas Avenue 20, Singapore, SGP, 638830
SHS Holdings Ltd is engaged in the design, engineering, and construction of steel, aluminium and glass structures. It is also engaged in corrosion prevention, structural steel and facade and solar energy operations. The company's segments include Corrosion prevention; Solar Energy; Engineering and Construction and Others. The Engineering & Construction segment, deriving the majority of the revenue, is engaged in the business of designing, engineering, and constructing steel, aluminium, and glass structures, and the design, construction, and manufacturing services in modular construction projects.

SHS Holdings Headlines

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