GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Iochpe-Maxion SA (BSP:MYPK3) » Definitions » Gross Margin %

Iochpe-Maxion (BSP:MYPK3) Gross Margin % : 10.92% (As of Dec. 2023)


View and export this data going back to 2005. Start your Free Trial

What is Iochpe-Maxion Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Iochpe-Maxion's Gross Profit for the three months ended in Dec. 2023 was R$380 Mil. Iochpe-Maxion's Revenue for the three months ended in Dec. 2023 was R$3,484 Mil. Therefore, Iochpe-Maxion's Gross Margin % for the quarter that ended in Dec. 2023 was 10.92%.

Warning Sign:

Iochpe-Maxion SA gross margin has been in long-term decline. The average rate of decline per year is -3.3%.


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

BSP:MYPK3' s Gross Margin % Range Over the Past 10 Years
Min: 6.45   Med: 12.74   Max: 15.42
Current: 10.09


During the past 13 years, the highest Gross Margin % of Iochpe-Maxion was 15.42%. The lowest was 6.45%. And the median was 12.74%.

BSP:MYPK3's Gross Margin % is ranked worse than
83.19% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs BSP:MYPK3: 10.09

Iochpe-Maxion had a gross margin of 10.92% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Iochpe-Maxion was -3.30% per year.


Iochpe-Maxion Gross Margin % Historical Data

The historical data trend for Iochpe-Maxion'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.

Iochpe-Maxion Gross Margin % Chart

Iochpe-Maxion 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 11.83 6.45 12.45 10.67 10.09

Iochpe-Maxion Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 7.79 8.53 11.17 9.86 10.92

Competitive Comparison of Iochpe-Maxion's Gross Margin %

For the Auto Parts subindustry, Iochpe-Maxion'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.


Iochpe-Maxion's Gross Margin % Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Iochpe-Maxion's Gross Margin % falls into.



Iochpe-Maxion Gross Margin % Calculation

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

Iochpe-Maxion'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 )
=1508.2 / 14955.22
=(Revenue - Cost of Goods Sold) / Revenue
=(14955.22 - 13446.975) / 14955.22
=10.09 %

Iochpe-Maxion's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=380.2 / 3483.501
=(Revenue - Cost of Goods Sold) / Revenue
=(3483.501 - 3103.262) / 3483.501
=10.92 %

* 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.


Iochpe-Maxion  (BSP:MYPK3) 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

Iochpe-Maxion had a gross margin of 10.92% for the quarter that ended in Dec. 2023 => 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.


Iochpe-Maxion Gross Margin % Related Terms

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


Iochpe-Maxion (BSP:MYPK3) Business Description

Traded in Other Exchanges
Address
Rua Dr. Othon Barcellos, 83, Cruzeiro, SP, BRA
Iochpe-Maxion SA is a Brazilian company involved in the manufacturing of automobile parts. Its core business is the production of wheels and structural components for light and commercial vehicles and equipment for railways. The company is a world leader in the production of automotive wheels. It has nearly 30 manufacturing facilities located globally and has customers worldwide and operates through three divisions; Maxion Wheels, Maxion Structural Components, and Amsted-Maxion. Maxion Wheels produces and markets a wide range of steel wheels, Maxion Structural Components, we produce struts, sleepers, and chassis assembled for light vehicles and Amsted-Maxion produces freight wagons, railway wheels and castings.

Iochpe-Maxion (BSP:MYPK3) Headlines

No Headlines