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Bellway (Bellway) Gross Margin % : 15.95% (As of Jan. 2024)


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What is Bellway Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Bellway's Gross Profit for the six months ended in Jan. 2024 was $258 Mil. Bellway's Revenue for the six months ended in Jan. 2024 was $1,618 Mil. Therefore, Bellway's Gross Margin % for the quarter that ended in Jan. 2024 was 15.95%.

Warning Sign:

Bellway PLC gross margin has been in long-term decline. The average rate of decline per year is -9%.


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

BLWYF' s Gross Margin % Range Over the Past 10 Years
Min: 12.52   Med: 22.93   Max: 25.86
Current: 16.22


During the past 13 years, the highest Gross Margin % of Bellway was 25.86%. The lowest was 12.52%. And the median was 22.93%.

BLWYF's Gross Margin % is ranked worse than
72.82% of 103 companies
in the Homebuilding & Construction industry
Industry Median: 21.72 vs BLWYF: 16.22

Bellway had a gross margin of 15.95% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Bellway was -9.00% per year.


Bellway Gross Margin % Historical Data

The historical data trend for Bellway'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.

Bellway Gross Margin % Chart

Bellway Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.59 15.74 19.22 12.52 19.04

Bellway Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 21.23 3.69 21.35 16.43 15.95

Competitive Comparison of Bellway's Gross Margin %

For the Residential Construction subindustry, Bellway'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.


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

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

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



Bellway Gross Margin % Calculation

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

Bellway's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=836 / 4389.948
=(Revenue - Cost of Goods Sold) / Revenue
=(4389.948 - 3553.994) / 4389.948
=19.04 %

Bellway's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=258.1 / 1617.662
=(Revenue - Cost of Goods Sold) / Revenue
=(1617.662 - 1359.593) / 1617.662
=15.95 %

* 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.


Bellway  (OTCPK:BLWYF) 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

Bellway had a gross margin of 15.95% for the quarter that ended in Jan. 2024 => 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.


Bellway Gross Margin % Related Terms

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


Bellway (Bellway) Business Description

Traded in Other Exchanges
Address
Woolsington House, Woolsington, Newcastle upon Tyne, GBR, NE13 8BF
Bellway is the U.K.'s fourth-largest residential property developer in terms of both revenue and dwelling completions. Bellway's vertical integration through the land development, construction, and sales and marketing segments of the residential property development value chain aligns with the typical business model employed by homebuilders in the U.K. market.

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