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Ependion AB (OSTO:EPEN) Gross Margin % : 50.04% (As of Mar. 2024)


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What is Ependion AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ependion AB's Gross Profit for the three months ended in Mar. 2024 was kr300 Mil. Ependion AB's Revenue for the three months ended in Mar. 2024 was kr599 Mil. Therefore, Ependion AB's Gross Margin % for the quarter that ended in Mar. 2024 was 50.04%.

Warning Sign:

Ependion AB gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


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

OSTO:EPEN' s Gross Margin % Range Over the Past 10 Years
Min: 45.28   Med: 48.22   Max: 51.98
Current: 49.8


During the past 13 years, the highest Gross Margin % of Ependion AB was 51.98%. The lowest was 45.28%. And the median was 48.22%.

OSTO:EPEN's Gross Margin % is ranked better than
87.83% of 2440 companies
in the Hardware industry
Industry Median: 24.31 vs OSTO:EPEN: 49.80

Ependion AB had a gross margin of 50.04% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ependion AB was -1.10% per year.


Ependion AB Gross Margin % Historical Data

The historical data trend for Ependion AB'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.

Ependion AB Gross Margin % Chart

Ependion AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 51.98 49.62 47.36 47.44 49.50

Ependion AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 48.86 49.46 50.63 49.03 50.04

Competitive Comparison of Ependion AB's Gross Margin %

For the Communication Equipment subindustry, Ependion AB'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.


Ependion AB's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Ependion AB's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ependion AB's Gross Margin % falls into.



Ependion AB Gross Margin % Calculation

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

Ependion AB'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 )
=1222.9 / 2470.647
=(Revenue - Cost of Goods Sold) / Revenue
=(2470.647 - 1247.715) / 2470.647
=49.50 %

Ependion AB's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=299.5 / 598.521
=(Revenue - Cost of Goods Sold) / Revenue
=(598.521 - 299.004) / 598.521
=50.04 %

* 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.


Ependion AB  (OSTO:EPEN) 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

Ependion AB had a gross margin of 50.04% for the quarter that ended in Mar. 2024 => 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.


Ependion AB Gross Margin % Related Terms

Thank you for viewing the detailed overview of Ependion AB's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ependion AB (OSTO:EPEN) Business Description

Traded in Other Exchanges
Address
Stora Varvsgatan 13a, Box 426, Malmo, SWE, SE-201 24
Ependion AB is an expansive global technology group delivering digital solutions for secure control, management, visualization, and data communication for industrial applications in environments where reliability and high quality are critical factors.

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