Verbund AG (Verbund AG) Gross Margin % : -7.87% (As of Dec. 2023)

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What is Verbund AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Verbund AG's Gross Profit for the three months ended in Dec. 2023 was $-57 Mil. Verbund AG's Revenue for the three months ended in Dec. 2023 was $719 Mil. Therefore, Verbund AG's Gross Margin % for the quarter that ended in Dec. 2023 was -7.87%.

Warning Sign:

Verbund AG gross margin has been in long-term decline. The average rate of decline per year is -5.3%.

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

OEZVY' s Gross Margin % Range Over the Past 10 Years
Min: 28.61 Med: 45.4 Max: 55.5
Current: 45.02

During the past 13 years, the highest Gross Margin % of Verbund AG was 55.50%. The lowest was 28.61%. And the median was 45.40%.

OEZVY's Gross Margin % is ranked better than
59.8% of 393 companies
in the Utilities - Independent Power Producers industry
Industry Median: 34.68 vs OEZVY: 45.02

Verbund AG had a gross margin of -7.87% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Verbund AG was -5.30% per year.

Verbund AG Gross Margin % Historical Data

The historical data trend for Verbund AG'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.

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Verbund AG Gross Margin % Chart

Verbund AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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41.94

55.50

38.88

28.61

45.02

Verbund AG Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															28.66	38.01	53.11	54.71	-7.87

Competitive Comparison of Verbund AG's Gross Margin %

For the Utilities - Renewable subindustry, Verbund AG'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.

Verbund AG's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Verbund AG's Gross Margin % distribution charts can be found below:

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

Verbund AG Gross Margin % Calculation

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

Verbund AG'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 )
	=	5130.1	/	11395.293
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11395.293 - 6265.237)	/	11395.293
	=	45.02 %

Verbund AG'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 )
	=	-56.6	/	719.285
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(719.285 - 775.925)	/	719.285
	=	-7.87 %

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.

Verbund AG (OTCPK:OEZVY) 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

Verbund AG had a gross margin of -7.87% 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.

Verbund AG Gross Margin % Related Terms

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Verbund AG (Verbund AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Verbund AG (OTCPK:OEZVY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

OEZVF:USA VERv:UK 0NR1:UK OEWA:Germany VER:Czech Republic VER:Austria

Address

Am Hof 6a, Vienna, AUT, 1010

Website

https://www.verbund.com

Founded in 1947 through a nationalization act, Verbund is the leading power producer in Austria. The Austrian state owns 51% of its capital. Hydro accounts for more than 90% of the total power output. Hydro power is generated from reservoirs and pumped storage plants in the Austrian Alps, and run-of-river plants in Austria and southern Germany. Total hydro capacity amounts to 8.4 GW. Verbund also owns the Austrian electricity grid through its fully owned subsidiary AP. In 2021, the firm acquired 51% of Gas Connect Austria, a gas transmission and distribution system operator. The group also owns one CCGT and is involved in trading and development of wind and solar capacity.