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SEP Analytical (Shanghai) Co (SZSE:301228) Gross Margin % : 29.14% (As of Mar. 2024)


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What is SEP Analytical (Shanghai) Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SEP Analytical (Shanghai) Co's Gross Profit for the three months ended in Mar. 2024 was ¥22.2 Mil. SEP Analytical (Shanghai) Co's Revenue for the three months ended in Mar. 2024 was ¥76.3 Mil. Therefore, SEP Analytical (Shanghai) Co's Gross Margin % for the quarter that ended in Mar. 2024 was 29.14%.

Warning Sign:

SEP Analytical (Shanghai) Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -19.3%.


The historical rank and industry rank for SEP Analytical (Shanghai) Co's Gross Margin % or its related term are showing as below:

SZSE:301228' s Gross Margin % Range Over the Past 10 Years
Min: 20.47   Med: 45   Max: 71.95
Current: 23.54


During the past 7 years, the highest Gross Margin % of SEP Analytical (Shanghai) Co was 71.95%. The lowest was 20.47%. And the median was 45.00%.

SZSE:301228's Gross Margin % is ranked worse than
52.01% of 2440 companies
in the Hardware industry
Industry Median: 24.375 vs SZSE:301228: 23.54

SEP Analytical (Shanghai) Co had a gross margin of 29.14% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for SEP Analytical (Shanghai) Co was -19.30% per year.


SEP Analytical (Shanghai) Co Gross Margin % Historical Data

The historical data trend for SEP Analytical (Shanghai) Co'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.

SEP Analytical (Shanghai) Co Gross Margin % Chart

SEP Analytical (Shanghai) Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 60.43 45.00 40.31 33.43 20.47

SEP Analytical (Shanghai) Co Quarterly Data
Dec17 Dec18 Dec19 Mar20 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 13.36 21.42 23.00 22.14 29.14

Competitive Comparison of SEP Analytical (Shanghai) Co's Gross Margin %

For the Scientific & Technical Instruments subindustry, SEP Analytical (Shanghai) Co'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.


SEP Analytical (Shanghai) Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, SEP Analytical (Shanghai) Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where SEP Analytical (Shanghai) Co's Gross Margin % falls into.



SEP Analytical (Shanghai) Co Gross Margin % Calculation

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

SEP Analytical (Shanghai) Co'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 )
=76.5 / 373.832
=(Revenue - Cost of Goods Sold) / Revenue
=(373.832 - 297.292) / 373.832
=20.47 %

SEP Analytical (Shanghai) Co'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 )
=22.2 / 76.281
=(Revenue - Cost of Goods Sold) / Revenue
=(76.281 - 54.056) / 76.281
=29.14 %

* 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.


SEP Analytical (Shanghai) Co  (SZSE:301228) 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

SEP Analytical (Shanghai) Co had a gross margin of 29.14% for the quarter that ended in Mar. 2024 => 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.


SEP Analytical (Shanghai) Co Gross Margin % Related Terms

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SEP Analytical (Shanghai) Co (SZSE:301228) Business Description

Traded in Other Exchanges
N/A
Address
No. 2059, Dulu Road, Room 2F306, Room 1F106, Building 2, Minhang District, Shanghai, CHN, 201108
SEP Analytical (Shanghai) Co Ltd is a third-party testing organization specializing in soil and groundwater. The testing scope includes soil, water quality, gas, solid waste, food, agricultural products, consumer goods, cosmetics and others, covering human health related testing business.

SEP Analytical (Shanghai) Co (SZSE:301228) Headlines

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