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EZ TEC Empreendimentos e Participacoes (BSP:EZTC3) Gross Margin % : 34.16% (As of Mar. 2024)


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What is EZ TEC Empreendimentos e Participacoes Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. EZ TEC Empreendimentos e Participacoes's Gross Profit for the three months ended in Mar. 2024 was R$82 Mil. EZ TEC Empreendimentos e Participacoes's Revenue for the three months ended in Mar. 2024 was R$239 Mil. Therefore, EZ TEC Empreendimentos e Participacoes's Gross Margin % for the quarter that ended in Mar. 2024 was 34.16%.

Warning Sign:

EZ TEC Empreendimentos e Participacoes SA gross margin has been in long-term decline. The average rate of decline per year is -3.2%.


The historical rank and industry rank for EZ TEC Empreendimentos e Participacoes's Gross Margin % or its related term are showing as below:

BSP:EZTC3' s Gross Margin % Range Over the Past 10 Years
Min: 31.73   Med: 43.69   Max: 52.57
Current: 33.05


During the past 13 years, the highest Gross Margin % of EZ TEC Empreendimentos e Participacoes was 52.57%. The lowest was 31.73%. And the median was 43.69%.

BSP:EZTC3's Gross Margin % is ranked worse than
55.22% of 1648 companies
in the Real Estate industry
Industry Median: 36.73 vs BSP:EZTC3: 33.05

EZ TEC Empreendimentos e Participacoes had a gross margin of 34.16% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for EZ TEC Empreendimentos e Participacoes was -3.20% per year.


EZ TEC Empreendimentos e Participacoes Gross Margin % Historical Data

The historical data trend for EZ TEC Empreendimentos e Participacoes'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.

EZ TEC Empreendimentos e Participacoes Gross Margin % Chart

EZ TEC Empreendimentos e Participacoes 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 40.80 43.04 46.12 34.27 31.73

EZ TEC Empreendimentos e Participacoes 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 28.42 32.37 32.31 33.29 34.16

Competitive Comparison of EZ TEC Empreendimentos e Participacoes's Gross Margin %

For the Real Estate - Development subindustry, EZ TEC Empreendimentos e Participacoes'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.


EZ TEC Empreendimentos e Participacoes's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, EZ TEC Empreendimentos e Participacoes's Gross Margin % distribution charts can be found below:

* The bar in red indicates where EZ TEC Empreendimentos e Participacoes's Gross Margin % falls into.



EZ TEC Empreendimentos e Participacoes Gross Margin % Calculation

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

EZ TEC Empreendimentos e Participacoes'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 )
=343.7 / 1083.172
=(Revenue - Cost of Goods Sold) / Revenue
=(1083.172 - 739.473) / 1083.172
=31.73 %

EZ TEC Empreendimentos e Participacoes'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 )
=81.7 / 239.186
=(Revenue - Cost of Goods Sold) / Revenue
=(239.186 - 157.477) / 239.186
=34.16 %

* 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.


EZ TEC Empreendimentos e Participacoes  (BSP:EZTC3) 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

EZ TEC Empreendimentos e Participacoes had a gross margin of 34.16% 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.


EZ TEC Empreendimentos e Participacoes Gross Margin % Related Terms

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EZ TEC Empreendimentos e Participacoes (BSP:EZTC3) Business Description

Traded in Other Exchanges
N/A
Address
Avenida Republica do Libano, 1921, Sao Paulo, SP, BRA, 04501002
EZ TEC Empreendimentos e Participacoes SA is a real estate development company that operates out of Brazil. The company and its subsidiaries engage in the development & sale of real estate, the management & lease of its own properties, land allotment, construction of condominiums, and services related to projects. The company defines its operations to include two revenue generating segments: commercial projects and residential projects. A majority of revenue is derived from the residential project segment, while a smaller portion is derived from the commercial projects segment. The company earns majority of its revenue in Brazil.

EZ TEC Empreendimentos e Participacoes (BSP:EZTC3) Headlines

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