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Msg Life AG (HAM:MSGL) Gross Margin % : 77.72% (As of Dec. 2022)


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What is Msg Life AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Msg Life AG's Gross Profit for the six months ended in Dec. 2022 was €142.1 Mil. Msg Life AG's Revenue for the six months ended in Dec. 2022 was €182.9 Mil. Therefore, Msg Life AG's Gross Margin % for the quarter that ended in Dec. 2022 was 77.72%.

Warning Sign:

Msg Life AG gross margin has been in long-term decline. The average rate of decline per year is -4.9%.


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

HAM:MSGL' s Gross Margin % Range Over the Past 10 Years
Min: 23.04   Med: 72.64   Max: 98.64
Current: 77.72


During the past 13 years, the highest Gross Margin % of Msg Life AG was 98.64%. The lowest was 23.04%. And the median was 72.64%.

HAM:MSGL's Gross Margin % is ranked better than
85.4% of 2631 companies
in the Software industry
Industry Median: 41.72 vs HAM:MSGL: 77.72

Msg Life AG had a gross margin of 77.72% for the quarter that ended in Dec. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Msg Life AG was -4.90% per year.


Msg Life AG Gross Margin % Historical Data

The historical data trend for Msg Life 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.

* Premium members only.

Msg Life AG Gross Margin % Chart

Msg Life AG Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 87.17 74.15 72.64 72.64 77.72

Msg Life AG Semi-Annual Data
Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
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 87.17 74.15 72.64 72.64 77.72

Competitive Comparison of Msg Life AG's Gross Margin %

For the Software - Application subindustry, Msg Life 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.


Msg Life AG's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Msg Life AG's Gross Margin % distribution charts can be found below:

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



Msg Life AG Gross Margin % Calculation

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

Msg Life AG's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=142.1 / 182.905
=(Revenue - Cost of Goods Sold) / Revenue
=(182.905 - 40.759) / 182.905
=77.72 %

Msg Life AG's Gross Margin for the quarter that ended in Dec. 2022 is calculated as


Gross Margin % (Q: Dec. 2022 )=Gross Profit (Q: Dec. 2022 ) / Revenue (Q: Dec. 2022 )
=142.1 / 182.905
=(Revenue - Cost of Goods Sold) / Revenue
=(182.905 - 40.759) / 182.905
=77.72 %

* 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.


Msg Life AG  (HAM:MSGL) 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

Msg Life AG had a gross margin of 77.72% for the quarter that ended in Dec. 2022 => Durable 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.


Msg Life AG Gross Margin % Related Terms

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Msg Life AG (HAM:MSGL) Business Description

Traded in Other Exchanges
N/A
Address
Humboldtstrasse 35, Leinfelden-Echterdingen, BW, DEU, 70771
Msg Life AG is a Germany-based company. It is a consultant and software company for the insurance and retirement savings market. It is a provider of software, advice, and cloud solutions for life insurance companies and pension fund institutions in Europe and, in particular, health insurance companies in the United States. The company's products and services include msg. Life Factory, msg.Insurance Suite, msg.Migration System, msg.Health Factory, msg.The commission, msg.Business Partner, msg.Billing, and others. Geographically, the company exports its services to the United States of America, Austria, Switzerland, Slovenia, Portugal, Poland, and Benelux.

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