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Watkin Jones (LSE:WJG) Gross Margin % : 7.25% (As of Sep. 2023)


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What is Watkin Jones Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Watkin Jones's Gross Profit for the six months ended in Sep. 2023 was £18.8 Mil. Watkin Jones's Revenue for the six months ended in Sep. 2023 was £259.4 Mil. Therefore, Watkin Jones's Gross Margin % for the quarter that ended in Sep. 2023 was 7.25%.

Warning Sign:

Watkin Jones PLC gross margin has been in long-term decline. The average rate of decline per year is -13.7%.


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

LSE:WJG' s Gross Margin % Range Over the Past 10 Years
Min: 8.44   Med: 19.83   Max: 21.44
Current: 8.44


During the past 11 years, the highest Gross Margin % of Watkin Jones was 21.44%. The lowest was 8.44%. And the median was 19.83%.

LSE:WJG's Gross Margin % is ranked worse than
91.92% of 99 companies
in the Homebuilding & Construction industry
Industry Median: 21.95 vs LSE:WJG: 8.44

Watkin Jones had a gross margin of 7.25% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Watkin Jones was -13.70% per year.


Watkin Jones Gross Margin % Historical Data

The historical data trend for Watkin Jones'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.

Watkin Jones Gross Margin % Chart

Watkin Jones Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.35 21.44 19.71 16.61 8.44

Watkin Jones Semi-Annual Data
Sep13 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.26 15.47 17.64 10.43 7.25

Competitive Comparison of Watkin Jones's Gross Margin %

For the Residential Construction subindustry, Watkin Jones'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.


Watkin Jones's Gross Margin % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Watkin Jones's Gross Margin % distribution charts can be found below:

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



Watkin Jones Gross Margin % Calculation

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

Watkin Jones's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=34.9 / 413.236
=(Revenue - Cost of Goods Sold) / Revenue
=(413.236 - 378.377) / 413.236
=8.44 %

Watkin Jones'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 )
=18.8 / 259.382
=(Revenue - Cost of Goods Sold) / Revenue
=(259.382 - 240.576) / 259.382
=7.25 %

* 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.

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.


Watkin Jones  (LSE:WJG) 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

Watkin Jones had a gross margin of 7.25% for the quarter that ended in Sep. 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.


Watkin Jones Gross Margin % Related Terms

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Watkin Jones (LSE:WJG) Business Description

Traded in Other Exchanges
Address
7-9 Swallow Street, London, GBR, W1B 4DE
Watkin Jones PLC is a developer and constructor of multi-occupancy property assets, with a focus on the student accommodation sector. Its service includes site identification and procurement, planning consent, construction delivery, and asset management. The company's operating segments include Student accommodation, Build to Rent, Affordable Homes, and Accommodation management. The majority of its revenue is derived from the Student accommodation and build-to-rent segments.

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