Novares Group (XPAR:NVS) Gross Margin %: 11.64% (As of Jun. 2017)


What is Novares Group Gross Margin %?

Novares Group XPAR:NVS Gross Margin % is 11.64% as of Jun. 2017.

Gross Margin % is calculated as gross profit divided by its revenue. Novares Group's Gross Profit for the six months ended in Jun. 2017 was €69.61 Mil. Novares Group's Revenue for the six months ended in Jun. 2017 was €598.05 Mil. Therefore, Novares Group's Gross Margin % for the quarter that ended in Jun. 2017 was 11.64%.


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


XPAR:NVS's Gross Margin % is not ranked *
in the Vehicles & Parts industry.
Industry Median: 19.835
* Ranked among companies with meaningful Gross Margin % only.

Novares Group had a gross margin of 11.64% for the quarter that ended in Jun. 2017 => No sustainable competitive advantage

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

Novares Group  (XPAR:NVS) 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

Novares Group had a gross margin of 11.64% for the quarter that ended in Jun. 2017 => 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.

Novares Group Gross Margin % Related Terms

Novares Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for Novares 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.

Novares Group Gross Margin % Chart

Novares Group Annual Data
Trend Dec16
Gross Margin %
10.92

Novares Group Semi-Annual Data
Jun16 Dec16 Jun17
Gross Margin % 11.72 10.07 11.64

XPAR:NVS vs : Gross Margin % Comparison

For the Auto Parts subindustry, Novares 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.

Novares Group Gross Margin % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Novares Group's Gross Margin % distribution charts can be found below:

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


Novares Group Gross Margin % Calculation

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

Novares Group's Gross Margin for the fiscal year that ended in Dec. 2016 is calculated as

Gross Margin % (A: Dec. 2016 )=Gross Profit (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=119.3 / 1092.991
=(Revenue - Cost of Goods Sold) / Revenue
=(1092.991 - 973.659) / 1092.991
=10.92 %

Novares Group's Gross Margin for the quarter that ended in Jun. 2017 is calculated as


Gross Margin % (Q: Jun. 2017 )=Gross Profit (Q: Jun. 2017 ) / Revenue (Q: Jun. 2017 )
=69.6 / 598.054
=(Revenue - Cost of Goods Sold) / Revenue
=(598.054 - 528.447) / 598.054
=11.64 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 11.64% mean?
Novares Group (XPAR:NVS) has a Gross Margin % of 11.64% as of Jun. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Novares Group and its competitors.
Is Novares Group's Gross Margin % too high?
Novares Group's current Gross Margin % is 11.64%. The Vehicles & Parts industry median Gross Margin % is 19.84. Novares Group's value of 11.64% is 41.3% below this industry median.
How does Novares Group's Gross Margin % compare to ?
Novares Group's Gross Margin % of 11.64% can be compared against companies in the Vehicles & Parts industry. The industry median Gross Margin % is 19.84. Novares Group's value of 11.64% is 41.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novares Group's current Gross Margin % of 11.64% is 41.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Novares Group and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novares Group's current Gross Margin % is 11.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novares Group stock overvalued right now?
Novares Group (XPAR:NVS) has a current Gross Margin % of 11.64%. The current Gross Margin % is 11.64% and 41.3% below the Vehicles & Parts industry median of 19.84. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Novares Group (XPAR:NVS), the current Gross Margin % is 11.64% as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Novares Group Business Description

Comparable Companies
Address 361 avenue du General de Gaulle, Clamart, Paris, FRA, FR-92140
Novares Group SA is a plastic solutions provider that designs and manufactures complex components and systems serving the automotive industry. The company designs and produces automotive parts and specializes in technical plastic injection for automobiles. Its product portfolio consists of Engine Components, Bezels and Clusters, Air Vents and Decoration Trims, Interior and Car Body Trim, Handles, Exterior Paint and Surfaces, and E-Powertrain Components.