Engenco (ASX:EGN) Gross Margin % : 49.28% (As of Dec. 2023)

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What is Engenco Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Engenco's Gross Profit for the six months ended in Dec. 2023 was A$53.2 Mil. Engenco's Revenue for the six months ended in Dec. 2023 was A$108.0 Mil. Therefore, Engenco's Gross Margin % for the quarter that ended in Dec. 2023 was 49.28%.

Warning Sign:

Engenco Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.7%.

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

ASX:EGN' s Gross Margin % Range Over the Past 10 Years
Min: 47.88 Med: 54.16 Max: 60.07
Current: 47.88

During the past 13 years, the highest Gross Margin % of Engenco was 60.07%. The lowest was 47.88%. And the median was 54.16%.

ASX:EGN's Gross Margin % is ranked better than
86.85% of 943 companies
in the Transportation industry
Industry Median: 20.14 vs ASX:EGN: 47.88

Engenco had a gross margin of 49.28% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Engenco was -2.70% per year.

Engenco Gross Margin % Historical Data

The historical data trend for Engenco'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.

Engenco Gross Margin % Chart

Engenco Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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54.70

53.39

52.75

50.89

48.32

Engenco Semi-Annual Data
	Jun14	Dec14	Jun15	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															53.32	48.87	50.35	46.58	49.28

Competitive Comparison of Engenco's Gross Margin %

For the Railroads subindustry, Engenco'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.

Engenco's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Engenco's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Engenco's Gross Margin % falls into.

Engenco Gross Margin % Calculation

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

Engenco's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	104.9	/	217.082
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(217.082 - 112.194)	/	217.082
	=	48.32 %

Engenco'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 )
	=	53.2	/	107.982
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(107.982 - 54.764)	/	107.982
	=	49.28 %

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.

Engenco (ASX:EGN) 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

Engenco had a gross margin of 49.28% 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.

Engenco Gross Margin % Related Terms

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Engenco (ASX:EGN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Engenco Ltd (ASX:EGN) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

535 Bourke Street, Level 22, Melbourne, VIC, AUS, 3000

Website

https://www.engenco.com.au

Engenco Ltd engages in the provision of engineering services. It operates through Convair, Gemco Rail, Drivetrain, Workforce Solutions, and All Other segments. The company generates maximum revenue from the Gemco Rail segment. Gemco Rail segment specialises in the remanufacture and repair of locomotives, wagons, bearings, and other rail products for rail operators and maintainers. It provides wheelset, bogie and in-field wagon maintenance and manufactures new and refurbished wagons, bogie component parts, customised remote controlled ballast car discharge gates, and others. Geographically, it derives a majority of revenue from Australasia.