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LU-VE SpA (MIL:LUVE) Gross Margin % : 5.28% (As of Sep. 2023)


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What is LU-VE SpA Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. LU-VE SpA's Gross Profit for the three months ended in Sep. 2023 was €7.6 Mil. LU-VE SpA's Revenue for the three months ended in Sep. 2023 was €144.1 Mil. Therefore, LU-VE SpA's Gross Margin % for the quarter that ended in Sep. 2023 was 5.28%.


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

MIL:LUVE' s Gross Margin % Range Over the Past 10 Years
Min: 34.47   Med: 47.86   Max: 50.41
Current: 34.47


During the past 10 years, the highest Gross Margin % of LU-VE SpA was 50.41%. The lowest was 34.47%. And the median was 47.86%.

MIL:LUVE's Gross Margin % is ranked better than
77.28% of 1611 companies
in the Construction industry
Industry Median: 19.23 vs MIL:LUVE: 34.47

LU-VE SpA had a gross margin of 5.28% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for LU-VE SpA was -0.20% per year.


LU-VE SpA Gross Margin % Historical Data

The historical data trend for LU-VE SpA'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.

LU-VE SpA Gross Margin % Chart

LU-VE SpA 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 47.86 49.10 47.52 46.01 34.47

LU-VE SpA Quarterly Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 85.99 35.20 59.60 5.28 33.53

Competitive Comparison of LU-VE SpA's Gross Margin %

For the Building Products & Equipment subindustry, LU-VE SpA'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.


LU-VE SpA's Gross Margin % Distribution in the Construction Industry

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

* The bar in red indicates where LU-VE SpA's Gross Margin % falls into.



LU-VE SpA Gross Margin % Calculation

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

LU-VE SpA'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 )
=283.9 / 617.075
=(Revenue - Cost of Goods Sold) / Revenue
=(617.075 - 333.187) / 617.075
=46.01 %

LU-VE SpA's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=7.6 / 144.149
=(Revenue - Cost of Goods Sold) / Revenue
=(144.149 - 136.533) / 144.149
=5.28 %

* 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.


LU-VE SpA  (MIL:LUVE) 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

LU-VE SpA had a gross margin of 5.28% for the quarter that ended in Sep. 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.


LU-VE SpA Gross Margin % Related Terms

Thank you for viewing the detailed overview of LU-VE SpA's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


LU-VE SpA (MIL:LUVE) Business Description

Traded in Other Exchanges
Address
Via Caduti della Liberazione, 53, Uboldo, Varese, ITA, 21040
LU-VE SpA manufactures and markets refrigeration and air conditioning products in Italy. Its products include commercial unit coolers, industrial unit coolers, air coolers, tubeless steel condensers, dry coolers, accessories, and special products. The company offers its products for industrial and commercial refrigeration, air conditioning, energy, power, industrial, and other applications. The company's segment includes Cooling Systems SBU and Components SBU. It generates maximum revenue from the Components SBU segment.

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