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Novavest Real Estate AG (XSWX:NREN) Gross Margin % : 84.15% (As of Dec. 2023)


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What is Novavest Real Estate AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Novavest Real Estate AG's Gross Profit for the six months ended in Dec. 2023 was CHF12.26 Mil. Novavest Real Estate AG's Revenue for the six months ended in Dec. 2023 was CHF14.57 Mil. Therefore, Novavest Real Estate AG's Gross Margin % for the quarter that ended in Dec. 2023 was 84.15%.

Warning Sign:

Novavest Real Estate AG gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


The historical rank and industry rank for Novavest Real Estate AG's Gross Margin % or its related term are showing as below:

XSWX:NREN' s Gross Margin % Range Over the Past 10 Years
Min: 74.57   Med: 83.19   Max: 88.24
Current: 82.62


During the past 11 years, the highest Gross Margin % of Novavest Real Estate AG was 88.24%. The lowest was 74.57%. And the median was 83.19%.

XSWX:NREN's Gross Margin % is ranked better than
90.2% of 1653 companies
in the Real Estate industry
Industry Median: 36.98 vs XSWX:NREN: 82.62

Novavest Real Estate AG had a gross margin of 84.15% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Novavest Real Estate AG was -1.10% per year.


Novavest Real Estate AG Gross Margin % Historical Data

The historical data trend for Novavest Real Estate AG'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.

Novavest Real Estate AG Gross Margin % Chart

Novavest Real Estate AG 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 86.56 85.34 83.09 83.29 82.62

Novavest Real Estate AG Semi-Annual Data
Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 82.48 82.98 83.58 81.16 84.15

Competitive Comparison of Novavest Real Estate AG's Gross Margin %

For the Real Estate - Diversified subindustry, Novavest Real Estate AG'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.


Novavest Real Estate AG's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Novavest Real Estate AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Novavest Real Estate AG's Gross Margin % falls into.



Novavest Real Estate AG Gross Margin % Calculation

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

Novavest Real Estate AG'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 )
=24.7 / 29.86
=(Revenue - Cost of Goods Sold) / Revenue
=(29.86 - 5.19) / 29.86
=82.62 %

Novavest Real Estate AG'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 )
=12.3 / 14.567
=(Revenue - Cost of Goods Sold) / Revenue
=(14.567 - 2.309) / 14.567
=84.15 %

* 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.


Novavest Real Estate AG  (XSWX:NREN) 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

Novavest Real Estate AG had a gross margin of 84.15% for the quarter that ended in Dec. 2023 => Durable 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.


Novavest Real Estate AG Gross Margin % Related Terms

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Novavest Real Estate AG (XSWX:NREN) Business Description

Traded in Other Exchanges
Address
Feldeggstrasse 26, Zurich, CHE, 8008
Novavest Real Estate AG is a Swiss real estate company. It is engaged in construction, acquisition, sale, holding, conversion and management of all types of real estate in theSwitzerland. The company manages and develops properties for residential use, office and commercial use as well as on new construction projects.

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