Muyuan Foods Co (SZSE:002714) Gross Margin %

: 9.98% (As of Sep. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Muyuan Foods Co's Gross Profit for the three months ended in Sep. 2023 was ¥3,102 Mil. Muyuan Foods Co's Revenue for the three months ended in Sep. 2023 was ¥31,100 Mil. Therefore, Muyuan Foods Co's Gross Margin % for the quarter that ended in Sep. 2023 was 9.98%.

Warning Sign:

Muyuan Foods Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.5%.

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

SZSE:002714' s Gross Margin % Range Over the Past 10 Years
Min: 7.73 Med: 22.22 Max: 60.68
Current: 14.84

During the past 13 years, the highest Gross Margin % of Muyuan Foods Co was 60.68%. The lowest was 7.73%. And the median was 22.22%.

SZSE:002714's Gross Margin % is ranked worse than
73.12% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 24.995 vs SZSE:002714: 14.84

Muyuan Foods Co had a gross margin of 9.98% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Muyuan Foods Co was -1.50% per year.

Muyuan Foods Co Gross Margin % Historical Data

The historical data trend for Muyuan Foods Co'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.

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Muyuan Foods Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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9.82

35.95

60.68

16.74

17.50

Muyuan Foods Co Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															30.22	34.06	1.88	1.01	9.98

Competitive Comparison

For the Farm Products subindustry, Muyuan Foods Co'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.

Muyuan Foods Co Gross Margin % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Muyuan Foods Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Muyuan Foods Co's Gross Margin % falls into.

Muyuan Foods Co Gross Margin % Calculation

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

Muyuan Foods Co's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	21839.2	/	124826.212
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(124826.212 - 102987.059)	/	124826.212
	=	17.50 %

Muyuan Foods Co's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	3102.4	/	31099.681
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(31099.681 - 27997.283)	/	31099.681
	=	9.98 %

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.

Muyuan Foods Co (SZSE:002714) 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

Muyuan Foods Co had a gross margin of 9.98% for the quarter that ended in Sep. 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.

Muyuan Foods Co Gross Margin % Related Terms

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Muyuan Foods Co (SZSE:002714) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Muyuan Foods Co Ltd (SZSE:002714) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Longsheng Industrial Park, Wolong District, Nanyang, CHN, 473000

Website

https://www.muyuanfoods.com

Muyuan Foods is the largest hog producer in China and operates an integrated model, stretching from feed processing, swine medicine development, and sow breeding, to hog raising and slaughtering. The company derives over 80% of its sales from hog production and has increased its exposure to hog processing in recent years. In recent years, feed processing has also taken up a mid-single-digit percentage of sales. Muyuan's hog output has increased 46 times between 2013 and 2022.

Muyuan Foods Co (SZSE:002714) Headlines

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