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U-Next Holdings Co (TSE:9418) Gross Margin % : 37.62% (As of Feb. 2024)


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What is U-Next Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. U-Next Holdings Co's Gross Profit for the three months ended in Feb. 2024 was 円29,539 Mil. U-Next Holdings Co's Revenue for the three months ended in Feb. 2024 was 円78,525 Mil. Therefore, U-Next Holdings Co's Gross Margin % for the quarter that ended in Feb. 2024 was 37.62%.

Warning Sign:

U-Next Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.3%.


The historical rank and industry rank for U-Next Holdings Co's Gross Margin % or its related term are showing as below:

TSE:9418' s Gross Margin % Range Over the Past 10 Years
Min: 30.7   Med: 36.92   Max: 44.21
Current: 37.18


During the past 10 years, the highest Gross Margin % of U-Next Holdings Co was 44.21%. The lowest was 30.70%. And the median was 36.92%.

TSE:9418's Gross Margin % is ranked better than
72.08% of 480 companies
in the Conglomerates industry
Industry Median: 25.125 vs TSE:9418: 37.18

U-Next Holdings Co had a gross margin of 37.62% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for U-Next Holdings Co was -4.30% per year.


U-Next Holdings Co Gross Margin % Historical Data

The historical data trend for U-Next Holdings 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.

* Premium members only.

U-Next Holdings Co Gross Margin % Chart

U-Next Holdings Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Aug19 Aug20 Aug21 Aug22 Aug23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.68 39.64 39.16 35.52 34.91

U-Next Holdings Co Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 33.03 36.14 36.51 38.34 37.62

Competitive Comparison of U-Next Holdings Co's Gross Margin %

For the Conglomerates subindustry, U-Next Holdings 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.


U-Next Holdings Co's Gross Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, U-Next Holdings Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where U-Next Holdings Co's Gross Margin % falls into.



U-Next Holdings Co Gross Margin % Calculation

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

U-Next Holdings Co's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )=Gross Profit (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=96480 / 276344
=(Revenue - Cost of Goods Sold) / Revenue
=(276344 - 179864) / 276344
=34.91 %

U-Next Holdings Co's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=29539 / 78525
=(Revenue - Cost of Goods Sold) / Revenue
=(78525 - 48986) / 78525
=37.62 %

* 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.


U-Next Holdings Co  (TSE:9418) 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

U-Next Holdings Co had a gross margin of 37.62% for the quarter that ended in Feb. 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.


U-Next Holdings Co Gross Margin % Related Terms

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U-Next Holdings Co (TSE:9418) Business Description

Traded in Other Exchanges
N/A
Address
No.1, Shin-Osaki 3-chome, Meguro Central Square, Shinagawa-ku, Tokyo, JPN, 141-0021
Usen-Next Holdings Co Ltd engages in the provision of digital content and mobile communication services. The firm's business line includes U-NEXT business, Content platform business, Mobile communication business, Fixed-line telecommunications business for multi-family housing, and BPO Business. Its content platform business engages in planning, developing, operating, and marketing U-NEXT, a video distribution service; and the provision of application development and infrastructure distribution services. The company also provides multi-MVNO cheap SIM, and cheap smartphone services; offers fixed-line telecommunications and optical Internet services; and operates contact centers.

U-Next Holdings Co (TSE:9418) Headlines

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