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EMSTEEL Building Materials PJSC (ADX:EMSTEEL) Gross Margin % : 11.80% (As of Mar. 2024)


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What is EMSTEEL Building Materials PJSC Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. EMSTEEL Building Materials PJSC's Gross Profit for the three months ended in Mar. 2024 was د.إ252 Mil. EMSTEEL Building Materials PJSC's Revenue for the three months ended in Mar. 2024 was د.إ2,136 Mil. Therefore, EMSTEEL Building Materials PJSC's Gross Margin % for the quarter that ended in Mar. 2024 was 11.80%.

Warning Sign:

EMSTEEL Building Materials PJSC gross margin has been in long-term decline. The average rate of decline per year is -15.8%.


The historical rank and industry rank for EMSTEEL Building Materials PJSC's Gross Margin % or its related term are showing as below:

ADX:EMSTEEL' s Gross Margin % Range Over the Past 10 Years
Min: 9.17   Med: 21.26   Max: 26.99
Current: 12.55


During the past 13 years, the highest Gross Margin % of EMSTEEL Building Materials PJSC was 26.99%. The lowest was 9.17%. And the median was 21.26%.

ADX:EMSTEEL's Gross Margin % is ranked worse than
52.9% of 586 companies
in the Steel industry
Industry Median: 12.94 vs ADX:EMSTEEL: 12.55

EMSTEEL Building Materials PJSC had a gross margin of 11.80% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for EMSTEEL Building Materials PJSC was -15.80% per year.


EMSTEEL Building Materials PJSC Gross Margin % Historical Data

The historical data trend for EMSTEEL Building Materials PJSC'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.

EMSTEEL Building Materials PJSC Gross Margin % Chart

EMSTEEL Building Materials PJSC Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.50 17.89 9.17 10.26 12.33

EMSTEEL Building Materials PJSC Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 11.06 11.99 11.55 14.54 11.80

Competitive Comparison of EMSTEEL Building Materials PJSC's Gross Margin %

For the Steel subindustry, EMSTEEL Building Materials PJSC'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.


EMSTEEL Building Materials PJSC's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, EMSTEEL Building Materials PJSC's Gross Margin % distribution charts can be found below:

* The bar in red indicates where EMSTEEL Building Materials PJSC's Gross Margin % falls into.



EMSTEEL Building Materials PJSC Gross Margin % Calculation

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

EMSTEEL Building Materials PJSC'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 )
=1097.3 / 8899.393
=(Revenue - Cost of Goods Sold) / Revenue
=(8899.393 - 7802.085) / 8899.393
=12.33 %

EMSTEEL Building Materials PJSC's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=252 / 2136.199
=(Revenue - Cost of Goods Sold) / Revenue
=(2136.199 - 1884.17) / 2136.199
=11.80 %

* 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.


EMSTEEL Building Materials PJSC  (ADX:EMSTEEL) 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

EMSTEEL Building Materials PJSC had a gross margin of 11.80% for the quarter that ended in Mar. 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.


EMSTEEL Building Materials PJSC Gross Margin % Related Terms

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EMSTEEL Building Materials PJSC (ADX:EMSTEEL) Business Description

Traded in Other Exchanges
N/A
Address
17th floor, Prestige Tower 17, PO Box 40307, near Mazyad Mall, Mohammed Bin Zayed City, ARE
EMSTEEL Building Materials PJSC formerly Arkan Building Materials Co (Arkan) PJSC manufactures building and construction products. Its product portfolio includes cement, concrete products, anabeeb pipes and arkan bags. The company invests in industrial and commercial projects which are involved in the building materials sector. Its segments include Steel, Cement and Blocks, Pipes and others The majority of the revenue is derived from the Steel segment.

EMSTEEL Building Materials PJSC (ADX:EMSTEEL) Headlines

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