NeueHealth (NeueHealth) Gross Margin % : 9.56% (As of Dec. 2023)

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What is NeueHealth Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NeueHealth's Gross Profit for the three months ended in Dec. 2023 was $28 Mil. NeueHealth's Revenue for the three months ended in Dec. 2023 was $293 Mil. Therefore, NeueHealth's Gross Margin % for the quarter that ended in Dec. 2023 was 9.56%.

Warning Sign:

NeueHealth Inc gross margin has been in long-term decline. The average rate of decline per year is -12.1%.

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

NEUE' s Gross Margin % Range Over the Past 10 Years
Min: 11.74 Med: 14.31 Max: 26.2
Current: 11.85

During the past 6 years, the highest Gross Margin % of NeueHealth was 26.20%. The lowest was 11.74%. And the median was 14.31%.

NEUE's Gross Margin % is ranked worse than
87.5% of 16 companies
in the Healthcare Plans industry
Industry Median: 23.73 vs NEUE: 11.85

NeueHealth had a gross margin of 9.56% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NeueHealth was -12.10% per year.

NeueHealth Gross Margin % Historical Data

The historical data trend for NeueHealth'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.

NeueHealth Gross Margin % Chart

NeueHealth Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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20.05

12.23

14.47

11.74

14.15

NeueHealth Quarterly Data
	Dec18	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial													11.91	8.97	17.73	15.95	9.56

Competitive Comparison of NeueHealth's Gross Margin %

For the Healthcare Plans subindustry, NeueHealth'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.

NeueHealth's Gross Margin % Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, NeueHealth's Gross Margin % distribution charts can be found below:

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

NeueHealth Gross Margin % Calculation

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

NeueHealth'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 )
	=	164.2	/	1160.802
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1160.802 - 996.582)	/	1160.802
	=	14.15 %

NeueHealth'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 )
	=	28	/	292.871
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(292.871 - 264.864)	/	292.871
	=	9.56 %

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.

NeueHealth (NYSE:NEUE) 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

NeueHealth had a gross margin of 9.56% 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.

NeueHealth Gross Margin % Related Terms

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

NeueHealth (NeueHealth) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » NeueHealth Inc (NYSE:NEUE) » Definitions » Gross Margin %

Comparable Companies

PFHO MRAI UNH ELV CI CVS HUM CNC MOH SZSE:000503 ALHC BSP:ODPV3 OSCR CLOV BSP:QUAL3 ROCO:6665 MIL:HI TSXV:NXG

Traded in Other Exchanges

N/A

Address

8000 Norman Center Drive, Suite 900, Minneapolis, MN, USA, 55437

Website

https://www.brighthealthgroup.com

Bright Health Group Inc is a technology-enabled, value-driven healthcare company focused on delivering affordable healthcare to the fast-growing aging and underserved populations in Florida, Texas, and California. It consists of two reportable segments: Bright HealthCare includes delegated senior managed care business that partners with a tight group of aligned providers in California focused on serving aging and underserved populations with unmet clinical needs through a Fully-Aligned Care Model, and Consumer Care includes a value-driven care delivery business that manages risk in partnership with external payors, It aims to significantly reduce the friction and current lack of coordination between payors by delivering on its Fully-Aligned Care Model with multiple payors.

Executives

Mikan George Lawrence Iii	director, officer: CEO and President	200 SW 1ST AVE, SUITE 1600, FORT LAUDERDALE FL 33301
Jay Matushak	officer: Chief Financial Officer	C/O BRIGHT HEALTH GROUP, INC., 8000 NORMAN CENTER DRIVE, SUITE 900, MINNEAPOLIS MN 55437
Jeffrey S Cook	officer: CEO, NeueHealth	C/O BRIGHT HEALTH GROUP INC, 8000 NORMAN CENTER DRIVE SUITE 1200, MINNEAPOLIS MN 55437
Jeffrey J Scherman	officer: Chief Accounting Officer	C/O BRIGHT HEALTH GROUP, INC., 8000 NORMAN CENTER DRIVE, SUITE 1200, MINNEAPOLIS MN 55437
Cathy R Smith	officer: CFO & CAO	TARGET CORPORATION, 1000 NICOLLET MALL, TPS-3155, MINNEAPOLIS MN 55403
Jeff Michael Craig	officer: GC & CORPORATE SECRETARY	C/O BRIGHT HEALTH GROUP INC, 8000 NORMAN CENTER DRIVE SUITE 1200, MINNEAPOLIS MN 55437
Manuel Kadre	director	2020 SALZEDO STREET, SUITE 301, CORAL GABLES FL 33134
Jeffrey R Immelt	director	GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
Nea 18 Vge Gp, Llc	10 percent owner	C/O NEW ENTERPRISE ASSOCIATES, 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Nea Partners 18 Vge, L.p.	10 percent owner	C/O NEW ENTERPRISE ASSOCIATES, 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Nea 18 Venture Growth Equity, L.p.	10 percent owner	1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Nea 17 Gp, Llc	10 percent owner	1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Nea Partners 17, L.p.	10 percent owner	1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
New Enterprise Associates 17, L.p.	10 percent owner	1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Michael A Carson	officer: CEO, Bright HealthCare	C/O BRIGHT HEALTH GROUP INC., 8000 NORMAN CENTER DRIVE SUITE 1200, MINNEAPOLIS MN 55437