Argent Industrial (JSE:ART) Gross Margin % : 27.92% (As of Sep. 2023)

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What is Argent Industrial Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Argent Industrial's Gross Profit for the six months ended in Sep. 2023 was R365 Mil. Argent Industrial's Revenue for the six months ended in Sep. 2023 was R1,307 Mil. Therefore, Argent Industrial's Gross Margin % for the quarter that ended in Sep. 2023 was 27.92%.

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

JSE:ART' s Gross Margin % Range Over the Past 10 Years
Min: 21.27 Med: 24.83 Max: 27.41
Current: 27.41

During the past 13 years, the highest Gross Margin % of Argent Industrial was 27.41%. The lowest was 21.27%. And the median was 24.83%.

JSE:ART's Gross Margin % is ranked better than
82.36% of 584 companies
in the Steel industry
Industry Median: 12.845 vs JSE:ART: 27.41

Argent Industrial had a gross margin of 27.92% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Argent Industrial was 3.20% per year.

Argent Industrial Gross Margin % Historical Data

The historical data trend for Argent Industrial'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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Argent Industrial Gross Margin % Chart

Argent Industrial Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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24.49

26.24

25.22

25.17

26.28

Argent Industrial Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															26.08	24.47	25.65	26.89	27.92

Competitive Comparison of Argent Industrial's Gross Margin %

For the Steel subindustry, Argent Industrial'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.

Argent Industrial's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Argent Industrial's Gross Margin % distribution charts can be found below:

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

Argent Industrial Gross Margin % Calculation

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

Argent Industrial's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	646.3	/	2459.359
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2459.359 - 1813.066)	/	2459.359
	=	26.28 %

Argent Industrial'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 )
	=	365.1	/	1307.477
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1307.477 - 942.418)	/	1307.477
	=	27.92 %

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.

Argent Industrial (JSE:ART) 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

Argent Industrial had a gross margin of 27.92% for the quarter that ended in Sep. 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.

Argent Industrial Gross Margin % Related Terms

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Argent Industrial (JSE:ART) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Argent Industrial Ltd (JSE:ART) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

First Floor, Ridge 63, 8 Sinembe Crescent, Sinembe Park, PO Box 5108, La Lucia Ridge Office Estate, Durban, NL, ZAF, 4019

Website

https://www.argent.co.za

Argent Industrial Ltd is a holding company that derives its income from the manufacturing and trading of steel and steel-related products, and properties. The company is organized into three operating divisions, namely Manufacturing, Steel trading, and Properties. The Manufacturing segment consists of manufacturing branded consumer goods. The steel trading segment makes up of ferrous steel, aluminum, and stainless steel products. Steel products are also traded internally to the group manufacturing businesses. The group charges rent for the properties. The company generates a majority of its revenue from manufacturing businesses. Geographically, it derives a majority of its revenue from South Africa and has a presence in the rest of the world.

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