Evolent Health Inc gross margin has been in long-term decline. The average rate of decline per year is -10%.
The historical rank and industry rank for Evolent Health's Gross Margin % or its related term are showing as below:
EVH'
s Gross Margin % Range Over the Past 10 Years
Min: 23.42 Med: 27.58 Max: 47.72
Current: 23.45
During the past 11 years, the highestGross Margin % of Evolent Health was 47.72%. The lowest was 23.42%. And the median was 27.58%.
EVH's Gross Margin % is ranked worse than 77.06% of 606
companies
in the Healthcare Providers & Services industry
Industry Median: 41.465
vs EVH: 23.45
Evolent Health had a gross margin of 18.28% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Evolent Health was -10.00% per year.
Evolent Health Gross Margin % Historical Data
The historical data trend for Evolent Health'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.
Competitive Comparison of Evolent Health's Gross Margin %
For the Health Information Services subindustry, Evolent Health'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.
Evolent Health's Gross Margin % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Evolent Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Evolent Health's Gross Margin % falls into.
* 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.
Evolent Health (NYSE:EVH) 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
Evolent Health had a gross margin of 18.28% 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.
Evolent Health Gross Margin % Related Terms
Thank you for viewing the detailed overview of Evolent Health's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Evolent Health (Evolent Health) Business Description
Evolent Health Inc is engaged in healthcare delivery and payment. The company supports health systems and physician organizations in their migration toward value-based care and population health management. The company's two reportable segments: EHS and Clinical Solutions. The Company's EHS segment provides an integrated administrative and clinical platform for health plan administration and value-based business infrastructure and clinical Solutions segment addresses a broad spectrum of clinical needs, with tailored solutions for specialty care management in oncology and cardiology and increasingly the musculoskeletal markets and holistic total cost of care improvement. It generates a majority of its revenue from Clinical Solutions segment.
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