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ADF Group (ADF Group) Gross Margin % : 24.46% (As of Jan. 2024)


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What is ADF Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ADF Group's Gross Profit for the three months ended in Jan. 2024 was $16.1 Mil. ADF Group's Revenue for the three months ended in Jan. 2024 was $65.9 Mil. Therefore, ADF Group's Gross Margin % for the quarter that ended in Jan. 2024 was 24.46%.


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

ADFJF' s Gross Margin % Range Over the Past 10 Years
Min: 7.07   Med: 11.87   Max: 22.03
Current: 22.03


During the past 13 years, the highest Gross Margin % of ADF Group was 22.03%. The lowest was 7.07%. And the median was 11.87%.

ADFJF's Gross Margin % is ranked worse than
63.09% of 2937 companies
in the Industrial Products industry
Industry Median: 26.42 vs ADFJF: 22.03

ADF Group had a gross margin of 24.46% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for ADF Group was 20.20% per year.


ADF Group Gross Margin % Historical Data

The historical data trend for ADF 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.

ADF Group Gross Margin % Chart

ADF Group Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.19 15.18 8.80 14.18 22.03

ADF Group Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 17.55 16.76 22.16 24.43 24.46

Competitive Comparison of ADF Group's Gross Margin %

For the Metal Fabrication subindustry, ADF 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.


ADF Group's Gross Margin % Distribution in the Industrial Products Industry

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

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



ADF Group Gross Margin % Calculation

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

ADF Group's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )=Gross Profit (A: Jan. 2024 ) / Revenue (A: Jan. 2024 )
=54.3 / 246.609
=(Revenue - Cost of Goods Sold) / Revenue
=(246.609 - 192.284) / 246.609
=22.03 %

ADF Group's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=16.1 / 65.853
=(Revenue - Cost of Goods Sold) / Revenue
=(65.853 - 49.746) / 65.853
=24.46 %

* 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.


ADF Group  (OTCPK:ADFJF) 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

ADF Group had a gross margin of 24.46% for the quarter that ended in Jan. 2024 => Competition eroding margins


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.


ADF Group Gross Margin % Related Terms

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


ADF Group (ADF Group) Business Description

Traded in Other Exchanges
Address
300, rue Henry-Bessemer, Terrebonne, QC, CAN, J6Y 1T3
ADF Group Inc involves in the design and engineering of connections, fabrication, including industrial coating, and the installation of steel structures and steel built-ups, as well as miscellaneous and architectural metalwork. The company's products and services are intended for the five principal segments of the non-residential construction industry: Office towers and high-rises, Commercial and recreational buildings, Airport facilities, Industrial complexes, and Transport infrastructures. It serves the client base in the non-residential construction industry, such as general contractors, project owners, engineering firms and project architects, and other steel structure fabricators. The company operates in the United States and Canada.

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