Daido Metal Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for Daido Metal Co's Gross Margin % or its related term are showing as below:
TSE:7245'
s Gross Margin % Range Over the Past 10 Years
Min: 22.66 Med: 25.85 Max: 28.01
Current: 24.32
During the past 13 years, the highestGross Margin % of Daido Metal Co was 28.01%. The lowest was 22.66%. And the median was 25.85%.
TSE:7245's Gross Margin % is ranked better than 63.75% of 1269
companies
in the Vehicles & Parts industry
Industry Median: 19.79
vs TSE:7245: 24.32
Daido Metal Co had a gross margin of 27.47% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Daido Metal Co was -1.70% per year.
Daido Metal Co Gross Margin % Historical Data
The historical data trend for Daido Metal 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 Daido Metal Co's Gross Margin %
For the Auto Parts subindustry, Daido Metal 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.
Daido Metal Co's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daido Metal Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Daido Metal 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.
Daido Metal Co (TSE:7245) 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
Daido Metal Co had a gross margin of 27.47% for the quarter that ended in Mar. 2024 => Competition eroding margins
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.
Daido Metal Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Daido Metal Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Daido Metal Co Ltd manufactures and sells a variety of bearings including automobile engine bearings and large ship engine bearings. The company has a production and sales network in the five-hub system of Japan, North America, Europe, Asia, and China. It manufactures bearings for trucks, construction and agricultural machinery, and bearings for automobile parts such as turbochargers and shock absorbers. Its products portfolio includes metal-polymer bearings, metallic bearings, engine bearing, turbomachinery bearing systems, modular products, pump, centralized lubrication, capacitors and semi-dry processing which are used in including automotive, marine, construction machinery, agricultural machines, industrial, energy, infrastructure and transportation, leisure, and household appliances.
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