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Sekisui Kasei Co (TSE:4228) Gross Margin % : 19.51% (As of Dec. 2023)


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What is Sekisui Kasei Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sekisui Kasei Co's Gross Profit for the three months ended in Dec. 2023 was 円6,359 Mil. Sekisui Kasei Co's Revenue for the three months ended in Dec. 2023 was 円32,596 Mil. Therefore, Sekisui Kasei Co's Gross Margin % for the quarter that ended in Dec. 2023 was 19.51%.

Warning Sign:

Sekisui Kasei Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.7%.


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

TSE:4228' s Gross Margin % Range Over the Past 10 Years
Min: 18.78   Med: 22.19   Max: 24.71
Current: 20.06


During the past 13 years, the highest Gross Margin % of Sekisui Kasei Co was 24.71%. The lowest was 18.78%. And the median was 22.19%.

TSE:4228's Gross Margin % is ranked worse than
55.26% of 1511 companies
in the Chemicals industry
Industry Median: 22.22 vs TSE:4228: 20.06

Sekisui Kasei Co had a gross margin of 19.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sekisui Kasei Co was -3.70% per year.


Sekisui Kasei Co Gross Margin % Historical Data

The historical data trend for Sekisui Kasei Co'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.

Sekisui Kasei Co Gross Margin % Chart

Sekisui Kasei Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.06 22.16 22.21 21.04 19.74

Sekisui Kasei Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 20.75 20.45 18.48 21.64 19.51

Competitive Comparison of Sekisui Kasei Co's Gross Margin %

For the Specialty Chemicals subindustry, Sekisui Kasei Co'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.


Sekisui Kasei Co's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sekisui Kasei Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sekisui Kasei Co's Gross Margin % falls into.



Sekisui Kasei Co Gross Margin % Calculation

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

Sekisui Kasei Co's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=24611 / 124683
=(Revenue - Cost of Goods Sold) / Revenue
=(124683 - 100072) / 124683
=19.74 %

Sekisui Kasei Co'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 )
=6359 / 32596
=(Revenue - Cost of Goods Sold) / Revenue
=(32596 - 26237) / 32596
=19.51 %

* 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.


Sekisui Kasei Co  (TSE:4228) 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

Sekisui Kasei Co had a gross margin of 19.51% 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.


Sekisui Kasei Co Gross Margin % Related Terms

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


Sekisui Kasei Co (TSE:4228) Business Description

Traded in Other Exchanges
N/A
Address
2-4-4 Nishitenma, Kita-ku, Osaka, JPN, 530-8565
Sekisui Kasei Co Ltd is a plastic provider solution company. The company is engaged in manufacture and sale of foamed plastic and other plastic products. It operates in two segments, Human Life, and Industry. The products in human life segment include Eslen beads, Eslen sheet, Eslen wood, Interforms, ES molded products such as ES Dan mat, Eslen block used in agricultural and fishery materials, food packaging materials, distribution materials, construction materials, civil engineering materials. The products in Industry segment are Pioceran, Literon, Neomicrolen, Serpet, Techpolymer, Technogel, Techheater, Elastil, Formac, ST-LAYER used in automotive materials, vehicle parts packaging, industrial materials, industrial packaging, electronic component materials, medical and health materials.

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