CPP Group (LSE:CPP) Gross Margin % : 16.03% (As of Dec. 2023)

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What is CPP Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CPP Group's Gross Profit for the six months ended in Dec. 2023 was £16.0 Mil. CPP Group's Revenue for the six months ended in Dec. 2023 was £99.5 Mil. Therefore, CPP Group's Gross Margin % for the quarter that ended in Dec. 2023 was 16.03%.

Warning Sign:

CPP Group PLC gross margin has been in long-term decline. The average rate of decline per year is -15.2%.

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

LSE:CPP' s Gross Margin % Range Over the Past 10 Years
Min: 16.03 Med: 33.29 Max: 62.34
Current: 16.03

During the past 13 years, the highest Gross Margin % of CPP Group was 62.34%. The lowest was 16.03%. And the median was 33.29%.

LSE:CPP's Gross Margin % is ranked worse than
84.72% of 988 companies
in the Business Services industry
Industry Median: 34.37 vs LSE:CPP: 16.03

CPP Group had a gross margin of 16.03% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for CPP Group was -15.20% per year.

CPP Group Gross Margin % Historical Data

The historical data trend for CPP Group'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.

CPP Group Gross Margin % Chart

CPP Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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29.26

25.02

22.65

18.12

16.03

CPP Group 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															21.91	19.78	16.74	16.03	16.03

Competitive Comparison of CPP Group's Gross Margin %

For the Specialty Business Services subindustry, CPP Group'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.

CPP Group's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, CPP Group's Gross Margin % distribution charts can be found below:

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

CPP Group Gross Margin % Calculation

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

CPP Group'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 )
	=	30.9	/	193.036
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(193.036 - 162.091)	/	193.036
	=	16.03 %

CPP Group'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 )
	=	16	/	99.515
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(99.515 - 83.56)	/	99.515
	=	16.03 %

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.

CPP Group (LSE:CPP) 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

CPP Group had a gross margin of 16.03% for the quarter that ended in Dec. 2023 => No sustainable 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.

CPP Group Gross Margin % Related Terms

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CPP Group (LSE:CPP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » CPP Group PLC (LSE:CPP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

CPP.GB:UK

Address

6 East Parade, Leeds, GBR, LS1 2AD

Website

https://corporate.cppgroup.com

CPP Group PLC is a UK-based company engaged in the provision of assistance products and services to customers. The Group is managed on the basis of five broad business units: India (CPP India and Globiva); Turkey; Blink; Central Functions: central cost base required to provide expertise and operate a listed group. Central Functions is stated after the recharge of certain central costs that are appropriate to transfer to the relevant geographies for statutory purposes; and Legacy (UK MGA, UK Legacy, Spain, Portugal and Italy). The company's portfolio of assistance products is distributed across the financial services and telecommunications sectors in the UK and overseas. It has its business spread across India, the United Kingdom, Spain, and Other countries.