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Frencken Group (SGX:E28) Gross Margin % : 13.96% (As of Dec. 2023)


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What is Frencken Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Frencken Group's Gross Profit for the six months ended in Dec. 2023 was S$54.7 Mil. Frencken Group's Revenue for the six months ended in Dec. 2023 was S$391.8 Mil. Therefore, Frencken Group's Gross Margin % for the quarter that ended in Dec. 2023 was 13.96%.

Warning Sign:

Frencken Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.9%.


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

SGX:E28' s Gross Margin % Range Over the Past 10 Years
Min: 13.19   Med: 15.79   Max: 16.99
Current: 13.19


During the past 13 years, the highest Gross Margin % of Frencken Group was 16.99%. The lowest was 13.19%. And the median was 15.79%.

SGX:E28's Gross Margin % is ranked worse than
76.87% of 2438 companies
in the Hardware industry
Industry Median: 24.405 vs SGX:E28: 13.19

Frencken Group had a gross margin of 13.96% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Frencken Group was -3.90% per year.


Frencken Group Gross Margin % Historical Data

The historical data trend for Frencken Group'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.

Frencken Group Gross Margin % Chart

Frencken Group 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 16.91 16.99 16.81 15.14 13.19

Frencken Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 16.21 15.63 14.65 12.34 13.96

Competitive Comparison of Frencken Group's Gross Margin %

For the Electronic Components subindustry, Frencken Group'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.


Frencken Group's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Frencken Group's Gross Margin % distribution charts can be found below:

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



Frencken Group Gross Margin % Calculation

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

Frencken Group'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 )
=98 / 742.859
=(Revenue - Cost of Goods Sold) / Revenue
=(742.859 - 644.855) / 742.859
=13.19 %

Frencken Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=54.7 / 391.827
=(Revenue - Cost of Goods Sold) / Revenue
=(391.827 - 337.125) / 391.827
=13.96 %

* 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.


Frencken Group  (SGX:E28) 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

Frencken Group had a gross margin of 13.96% for the quarter that ended in Dec. 2023 => 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.


Frencken Group Gross Margin % Related Terms

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


Frencken Group (SGX:E28) Business Description

Traded in Other Exchanges
N/A
Address
No. 25 Lebuh Light, Suite 2.1, Level 2, Wisma Great Eastern, George Town, PNG, MYS, 10200
Frencken Group Ltd is a Singapore-based company. The business operates in segments that are Mechatronics, which specializes in the design and manufacture of complex electro-mechanical assemblies, and automation systems for original equipment manufacturers; and Integrated Manufacturing Services, which specializes in the manufacturing of plastic components and printed circuit board assembly for modules and finished products. The Mechatronics segment generates maximum revenue for the company.

Frencken Group (SGX:E28) Headlines

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