Yunda Holding Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -17%.
The historical rank and industry rank for Yunda Holding Co's Gross Margin % or its related term are showing as below:
SZSE:002120'
s Gross Margin % Range Over the Past 10 Years
Min: 9.05 Med: 17.13 Max: 31.16
Current: 9.51
During the past 13 years, the highestGross Margin % of Yunda Holding Co was 31.16%. The lowest was 9.05%. And the median was 17.13%.
SZSE:002120's Gross Margin % is ranked worse than 80.74% of 945
companies
in the Transportation industry
Industry Median: 20.25
vs SZSE:002120: 9.51
Yunda Holding Co had a gross margin of 10.33% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Yunda Holding Co was -17.00% per year.
Yunda Holding Co Gross Margin % Historical Data
The historical data trend for Yunda Holding Co'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.
Competitive Comparison of Yunda Holding Co's Gross Margin %
For the Integrated Freight & Logistics subindustry, Yunda Holding Co'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.
Yunda Holding Co's Gross Margin % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Yunda Holding Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yunda Holding Co's Gross Margin % falls into.
* 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.
Yunda Holding Co (SZSE:002120) 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
Yunda Holding Co had a gross margin of 10.33% for the quarter that ended in Mar. 2024 => 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.
Yunda Holding Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Yunda Holding Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Yunda Holding Co (SZSE:002120) Business Description
Yunda is one of the "Tongdas", which refers to the top four national express delivery companies that adopt the network partner model. In this model, Tongdas provide line-haul transportation, sorting, and waybill services to its network partners for fees, while its local network partners provide first-mile pickup and last-mile delivery services under the Tongdas' brands and collect the customer payments. Unlike some other peers, Yunda controls 100% of its hub-level transit centers, ensuring higher quality assurance. The company was founded by couple Nie Tengyun and Chen Liying. Nie remains the Chairman and President, with a 54.8% stake as of Sept. 30, 2023. Yunda's strategic shareholder is leading China e-commerce company, Alibaba Group, with around a 1.99% interest.
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