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Gesco SE (XTER:GSC1) Gross Margin % : 43.85% (As of Sep. 2024)


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What is Gesco SE Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gesco SE's Gross Profit for the three months ended in Sep. 2024 was €57.0 Mil. Gesco SE's Revenue for the three months ended in Sep. 2024 was €130.1 Mil. Therefore, Gesco SE's Gross Margin % for the quarter that ended in Sep. 2024 was 43.85%.

Warning Sign:

Gesco SE gross margin has been in long-term decline. The average rate of decline per year is -3.5%.


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

XTER:GSC1' s Gross Margin % Range Over the Past 10 Years
Min: 42.57   Med: 48.97   Max: 51.62
Current: 43.9


During the past 13 years, the highest Gross Margin % of Gesco SE was 51.62%. The lowest was 42.57%. And the median was 48.97%.

XTER:GSC1's Gross Margin % is ranked better than
85.08% of 2950 companies
in the Industrial Products industry
Industry Median: 26.805 vs XTER:GSC1: 43.90

Gesco SE had a gross margin of 43.85% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Gesco SE was -3.50% per year.


Gesco SE Gross Margin % Historical Data

The historical data trend for Gesco SE'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.

Gesco SE Gross Margin % Chart

Gesco SE Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.73 44.68 46.06 42.57 42.95

Gesco SE Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 42.13 43.73 45.12 42.95 43.85

Competitive Comparison of Gesco SE's Gross Margin %

For the Specialty Industrial Machinery subindustry, Gesco SE'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.


Gesco SE's Gross Margin % Distribution in the Industrial Products Industry

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

* The bar in red indicates where Gesco SE's Gross Margin % falls into.


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Gesco SE Gross Margin % Calculation

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

Gesco SE'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 )
=240.8 / 560.724
=(Revenue - Cost of Goods Sold) / Revenue
=(560.724 - 319.915) / 560.724
=42.95 %

Gesco SE's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=57 / 130.084
=(Revenue - Cost of Goods Sold) / Revenue
=(130.084 - 73.047) / 130.084
=43.85 %

* 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.


Gesco SE  (XTER:GSC1) 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

Gesco SE had a gross margin of 43.85% for the quarter that ended in Sep. 2024 => Durable 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.


Gesco SE Gross Margin % Related Terms

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


Gesco SE Business Description

Traded in Other Exchanges
Address
Johannisberg 7, Wuppertal, DEU, 42103
Gesco SE is an industrial group in Germany. The company acquires industrial small and medium-sized enterprises that supply products and services from tool steel to stainless steel containers, from paper sticks to support arms, among others to end customer markets. It functions through three segments; Process Technology segment comprises subsidiaries that support series manufacturers in their production processes with their products and services; Resource Technology, companies provide customized processing of primary materials. It also produces systems for loading raw materials and energy sources. and Healthcare and Infrastructure Technology segment companies supply components, assemblies, or preliminary products to the medical, hygiene, food and sanatory sectors.
Executives
Ralph Rumberg Board of Directors
Kerstin Müller-kirchhofs Board of Directors

Gesco SE Headlines

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