Aveng (JSE:AEG) Gross Margin % : 5.52% (As of Dec. 2023)

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What is Aveng Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Aveng's Gross Profit for the six months ended in Dec. 2023 was R1,047 Mil. Aveng's Revenue for the six months ended in Dec. 2023 was R18,967 Mil. Therefore, Aveng's Gross Margin % for the quarter that ended in Dec. 2023 was 5.52%.

Warning Sign:

Aveng Ltd gross margin has been in long-term decline. The average rate of decline per year is -11.5%.

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

JSE:AEG' s Gross Margin % Range Over the Past 10 Years
Min: -13.37 Med: 5.63 Max: 7.89
Current: 1.72

During the past 13 years, the highest Gross Margin % of Aveng was 7.89%. The lowest was -13.37%. And the median was 5.63%.

JSE:AEG's Gross Margin % is ranked worse than
93.31% of 1614 companies
in the Construction industry
Industry Median: 19.255 vs JSE:AEG: 1.72

Aveng had a gross margin of 5.52% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Aveng was -11.50% per year.

Aveng Gross Margin % Historical Data

The historical data trend for Aveng'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.

Aveng Gross Margin % Chart

Aveng Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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4.08

4.65

7.64

7.89

1.53

Aveng Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															7.17	8.57	6.56	-2.96	5.52

Competitive Comparison of Aveng's Gross Margin %

For the Engineering & Construction subindustry, Aveng'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.

Aveng's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Aveng's Gross Margin % distribution charts can be found below:

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

Aveng Gross Margin % Calculation

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

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

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	448.3	/	29212.513
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(29212.513 - 28764.185)	/	29212.513
	=	1.53 %

Aveng'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 )
	=	1047	/	18966.756
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(18966.756 - 17919.777)	/	18966.756
	=	5.52 %

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.

Aveng (JSE:AEG) 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

Aveng had a gross margin of 5.52% 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.

Aveng Gross Margin % Related Terms

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Aveng (JSE:AEG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Aveng Ltd (JSE:AEG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

UG8K:Germany

Address

10 The High Street, 3rd Floor, Melrose Arch, Johannesburg, GT, ZAF, 2076

Website

https://www.aveng.co.za

Aveng Ltd is in the construction and engineering business. It has the following segments. The Construction and Engineering segment specializes in the construction and maintenance of tunnels and pipelines, construction and Engineering: South Africa and rest of Africa; and mineral construction. It comprises McConnell Dowell and is divided into Australia, New Zealand, and Pacific, Built Environs, and Southeast Asia. The Mining segment comprises Moolmans and operates in the open cut and underground mining sectors. Construction and Engineering South Africa segment, Other and Eliminations segment comprises corporate services, Africa construction, corporate held investments, including properties and consolidation eliminations, and Manufacturing and Processing segment.