AlzChem Group AG (FRA:ACT) Gross Margin % : 66.96% (As of Dec. 2023)

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What is AlzChem Group AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. AlzChem Group AG's Gross Profit for the three months ended in Dec. 2023 was €95.6 Mil. AlzChem Group AG's Revenue for the three months ended in Dec. 2023 was €142.8 Mil. Therefore, AlzChem Group AG's Gross Margin % for the quarter that ended in Dec. 2023 was 66.96%.

Warning Sign:

AlzChem Group AG gross margin has been in long-term decline. The average rate of decline per year is -2.5%.

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

FRA:ACT' s Gross Margin % Range Over the Past 10 Years
Min: 52.14 Med: 63.09 Max: 66.07
Current: 58.73

During the past 13 years, the highest Gross Margin % of AlzChem Group AG was 66.07%. The lowest was 52.14%. And the median was 63.09%.

FRA:ACT's Gross Margin % is ranked better than
95.63% of 1509 companies
in the Chemicals industry
Industry Median: 22.31 vs FRA:ACT: 58.73

AlzChem Group AG had a gross margin of 66.96% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for AlzChem Group AG was -2.50% per year.

AlzChem Group AG Gross Margin % Historical Data

The historical data trend for AlzChem Group 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.

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AlzChem Group AG Gross Margin % Chart

AlzChem Group AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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63.09

66.07

63.54

52.14

58.55

AlzChem Group AG Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															52.49	49.98	58.67	59.94	66.96

Competitive Comparison of AlzChem Group AG's Gross Margin %

For the Specialty Chemicals subindustry, AlzChem Group 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.

AlzChem Group AG's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, AlzChem Group AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where AlzChem Group AG's Gross Margin % falls into.

AlzChem Group AG Gross Margin % Calculation

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

AlzChem Group 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 )
	=	316.6	/	540.649
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(540.649 - 224.085)	/	540.649
	=	58.55 %

AlzChem Group 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 )
	=	95.6	/	142.795
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(142.795 - 47.176)	/	142.795
	=	66.96 %

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.

AlzChem Group AG (FRA:ACT) 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

AlzChem Group AG had a gross margin of 66.96% 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.

AlzChem Group AG Gross Margin % Related Terms

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AlzChem Group AG (FRA:ACT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » AlzChem Group AG (FRA:ACT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ACT:Germany

Address

Dr.-Albert-Frank-Street 32, Trostberg, DEU, 83308

Website

https://www.alzchem.com

AlzChem Group AG is an international chemical company. Its reportable segments are Specialty Chemicals, Basics and Intermediates, and Other Holdings. The specialty chemicals segment focuses on the production and distribution of high-quality growth products, and the basics and intermediates segment covers the production of basic and intermediate products. It generates a majority of its revenue from the Specialty Chemical segment. Geographically it serves Europe, Asia, and the Rest of the world whilst deriving substantial revenue from Germany.