Restore (LSE:RST) Gross Margin % : 41.38% (As of Dec. 2023)

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What is Restore Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Restore's Gross Profit for the six months ended in Dec. 2023 was £56.9 Mil. Restore's Revenue for the six months ended in Dec. 2023 was £137.5 Mil. Therefore, Restore's Gross Margin % for the quarter that ended in Dec. 2023 was 41.38%.

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

LSE:RST' s Gross Margin % Range Over the Past 10 Years
Min: 35.11 Med: 42.03 Max: 45.75
Current: 42.01

During the past 13 years, the highest Gross Margin % of Restore was 45.75%. The lowest was 35.11%. And the median was 42.03%.

LSE:RST's Gross Margin % is ranked better than
60.49% of 987 companies
in the Business Services industry
Industry Median: 34.32 vs LSE:RST: 42.01

Restore had a gross margin of 41.38% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Restore was -0.10% per year.

Restore Gross Margin % Historical Data

The historical data trend for Restore'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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Restore Gross Margin % Chart

Restore Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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44.20

42.04

45.75

44.30

42.01

Restore 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															46.33	43.91	44.70	42.62	41.38

Competitive Comparison of Restore's Gross Margin %

For the Specialty Business Services subindustry, Restore'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.

Restore's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Restore's Gross Margin % distribution charts can be found below:

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

Restore Gross Margin % Calculation

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

Restore'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 )
	=	116.4	/	277.1
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(277.1 - 160.7)	/	277.1
	=	42.01 %

Restore'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 )
	=	56.9	/	137.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(137.5 - 80.6)	/	137.5
	=	41.38 %

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.

Restore (LSE:RST) 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

Restore had a gross margin of 41.38% for the quarter that ended in Dec. 2023 => 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.

Restore Gross Margin % Related Terms

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Restore (LSE:RST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Restore PLC (LSE:RST) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MWDA:Germany

Address

7-10 Chandos Street, 2nd Floor, London, GBR, W1G 9DA

Website

https://www.restoreplc.com

Restore PLC provides mission-critical services enabling organizations to protect, and manage valuable data, information, and assets. The company's segment includes the Digital and Information Management segment including businesses like Restore Records Management, and Restore Digital, and the Secure Lifecycle Solutions segment includes businesses like Restore Technology, Restore Datashred, and Restore Harrow Green. It generates maximum revenue from the Digital and Information Management segment.