Convergenze SpA (FRA:7E0) Gross Margin % : 29.42% (As of Dec. 2023)

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What is Convergenze SpA Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Convergenze SpA's Gross Profit for the six months ended in Dec. 2023 was €3.66 Mil. Convergenze SpA's Revenue for the six months ended in Dec. 2023 was €12.44 Mil. Therefore, Convergenze SpA's Gross Margin % for the quarter that ended in Dec. 2023 was 29.42%.

Warning Sign:

Convergenze SpA gross margin has been in long-term decline. The average rate of decline per year is -2.6%.

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

FRA:7E0' s Gross Margin % Range Over the Past 10 Years
Min: 15.85 Med: 24.61 Max: 28.14
Current: 28.13

During the past 6 years, the highest Gross Margin % of Convergenze SpA was 28.14%. The lowest was 15.85%. And the median was 24.61%.

FRA:7E0's Gross Margin % is ranked worse than
76.64% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.16 vs FRA:7E0: 28.13

Convergenze SpA had a gross margin of 29.42% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Convergenze SpA was -2.60% per year.

Convergenze SpA Gross Margin % Historical Data

The historical data trend for Convergenze SpA'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.

Convergenze SpA Gross Margin % Chart

Convergenze SpA Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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21.12

26.99

22.22

15.85

28.14

Convergenze SpA Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial						17.19	14.47	16.93	26.59	29.42

Competitive Comparison of Convergenze SpA's Gross Margin %

For the Telecom Services subindustry, Convergenze SpA'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.

Convergenze SpA's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Convergenze SpA's Gross Margin % distribution charts can be found below:

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

Convergenze SpA Gross Margin % Calculation

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

Convergenze SpA'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 )
	=	6.4	/	22.86
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(22.86 - 16.428)	/	22.86
	=	28.14 %

Convergenze SpA'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 )
	=	3.7	/	12.443
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12.443 - 8.782)	/	12.443
	=	29.42 %

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.

Convergenze SpA (FRA:7E0) 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

Convergenze SpA had a gross margin of 29.42% for the quarter that ended in Dec. 2023 => Competition eroding margins

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.

Convergenze SpA Gross Margin % Related Terms

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Convergenze SpA (FRA:7E0) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Convergenze SpA (FRA:7E0) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

CVG:Italy

Address

Via Magna Graecia 136, Capaccio Paestum, Salerno, ITA, 84047

Website

https://www.convergenze.it

Convergenze SpA is engaged in providing telecommunication services. The company wireless internet services, mobile calling and data services, television subscription services, voice call services, and other related services.

Convergenze SpA (FRA:7E0) Headlines

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