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UHG (United Homes Group) Gross Margin % : 16.15% (As of Dec. 2024)


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What is United Homes Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. United Homes Group's Gross Profit for the three months ended in Dec. 2024 was $21.8 Mil. United Homes Group's Revenue for the three months ended in Dec. 2024 was $134.8 Mil. Therefore, United Homes Group's Gross Margin % for the quarter that ended in Dec. 2024 was 16.15%.

Warning Sign:

United Homes Group Inc gross margin has been in long-term decline. The average rate of decline per year is -2.8%.


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

UHG' s Gross Margin % Range Over the Past 10 Years
Min: 17.22   Med: 20.39   Max: 24.9
Current: 17.22


During the past 6 years, the highest Gross Margin % of United Homes Group was 24.90%. The lowest was 17.22%. And the median was 20.39%.

UHG's Gross Margin % is ranked worse than
73.63% of 91 companies
in the Homebuilding & Construction industry
Industry Median: 22.92 vs UHG: 17.22

United Homes Group had a gross margin of 16.15% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for United Homes Group was -2.80% per year.


United Homes Group Gross Margin % Historical Data

The historical data trend for United Homes 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.

United Homes Group Gross Margin % Chart

United Homes Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial 20.52 23.24 24.90 18.92 17.22

United Homes Group Quarterly Data
Dec19 Dec20 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 18.51 15.96 17.89 18.87 16.15

Competitive Comparison of United Homes Group's Gross Margin %

For the Residential Construction subindustry, United Homes 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.


United Homes Group's Gross Margin % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, United Homes Group's Gross Margin % distribution charts can be found below:

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


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United Homes Group Gross Margin % Calculation

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

United Homes Group's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=79.8 / 463.714
=(Revenue - Cost of Goods Sold) / Revenue
=(463.714 - 383.884) / 463.714
=17.22 %

United Homes Group's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=21.8 / 134.812
=(Revenue - Cost of Goods Sold) / Revenue
=(134.812 - 113.037) / 134.812
=16.15 %

* 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.


United Homes Group  (NAS:UHG) 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

United Homes Group had a gross margin of 16.15% for the quarter that ended in Dec. 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.


United Homes Group Gross Margin % Related Terms

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


United Homes Group Business Description

Traded in Other Exchanges
N/A
Address
917 Chapin Road, Chapin, SC, USA, 29036
United Homes Group Inc operates as a homebuilder which operates with a land-light idea in the Southeast. The company currently has a presence in South Carolina, North Carolina, and Georgia and focuses on providing high-quality, affordable homes for the entry-level and first-move-up segments. The company has three reportable segments: GSH South Carolina, Rosewood, and Other.
Executives
Penny Robert Earl Jr. officer: Executive VP - Sales 90 N. ROYAL TOWER DRIVE, IRMO SC 29063
Twine Ray Shelton Iii 10 percent owner, officer: Chief Operating Officer 90 N. ROYAL TOWER DRIVE, IRMO SC 29063
Michael P. Nieri director, 10 percent owner, officer: Chairman, CEO, and President 90 N. ROYAL TOWER DRIVE, IRMO SC 29063
Michael Simanovsky director 90 PARK AVENUE, 32ND FLOOR, NEW YORK NY 10016
Maigan Elizabeth Nieri 10 percent owner 90 N ROYAL TOWER DRIVE, IRMO SC 29063
Patrick Michael Nieri 10 percent owner 90 N ROYAL TOWER DRIVE, IRMO SC 29063
Pennington W. Nieri 10 percent owner 90 N. ROYAL TOWER DRIVE, IRMO SC 29063
Jeremy P. Pyle officer: Co-Executive VP - Construction 90 N. ROYAL TOWER DRIVE, IRMO SC 29063
Robert F. Dozier director 90 N. ROYAL TOWER DRIVE, IRMO SC 29063
Antara Capital Lp 10 percent owner 55 HUDSON YARDS, 47TH FLOOR, NEW YORK NY 10001
Men Trust 2018 Dated 7/17/2018 10 percent owner 90 N ROYAL TOWER DRIVE, IRMO SC 29063
Robert T. Grove director 25 DEFOREST AVENUE, SUMMIT NJ 07901
Stephen C. Lenker officer: Exec. VP, G.C., & Corp. Sec. 90 N. ROYAL TOWER DRIVE, IRMO SC 29063
O'grady Clive R.g. director, officer: Chief Administrative Officer 90 N. ROYAL TOWER DRIVE, IRMO SC 29063
Eric S. Bland director 90 N. ROYAL TOWER DRIVE, IRMO SC 29063