Metawater Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Metawater Co's Gross Margin % or its related term are showing as below:
FRA:2MW'
s Gross Margin % Range Over the Past 10 Years
Min: 18.49 Med: 20.95 Max: 22.21
Current: 20.78
During the past 11 years, the highestGross Margin % of Metawater Co was 22.21%. The lowest was 18.49%. And the median was 20.95%.
FRA:2MW's Gross Margin % is ranked worse than 66.95% of 2929
companies
in the Industrial Products industry
Industry Median: 26.57
vs FRA:2MW: 20.78
Metawater Co had a gross margin of 23.99% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Metawater Co was -1.30% per year.
Metawater Co Gross Margin % Historical Data
The historical data trend for Metawater 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.
Competitive Comparison of Metawater Co's Gross Margin %
For the Pollution & Treatment Controls subindustry, Metawater 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.
Metawater Co's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Metawater Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Metawater Co's Gross Margin % falls into.
* 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.
Metawater Co (FRA:2MW) 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
Metawater Co had a gross margin of 23.99% for the quarter that ended in Dec. 2023 => 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.
Metawater Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Metawater Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Metawater Co Ltd is a Japan-based company, which offers optimum solutions for creating a circulation of water recourses while focusing on the plant engineering business and service solution business. It manufactures mechanical and electrical equipment for water and wastewater treatment. The company operates in two segments; Plant Engineering segment, which involves in the design, procurement and sale of mechanical and electrical equipment, used in water purification plants and sewage treatment plants; and the Service Solution segment involves in the repair, maintenance and operation management of mechanical and electrical equipment used in water purification plants and sewage treatment plants, providing equipment inspection, repair, maintenance, and other services.
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