Gross Margin % is calculated as gross profit divided by its revenue. Metalico's Gross Profit for the
three
months ended in Jun. 2015 was €3.3 Mil. Metalico's Revenue for the
three
months ended in Jun. 2015 was €69.0 Mil. Therefore, Metalico's Gross Margin % for the quarter that ended in Jun. 2015 was 4.72%.
Warning Sign:
Metalico Inc gross margin has been in long term decline. The average rate of decline per year is -17.8%.
The historical rank and industry rank for Metalico's Gross Margin % or its related term are showing as below:
FRA:MT5'
s Gross Margin % Range Over the Past 10 Years
Min: 4.59 Med: 12.65 Max: 18.09
Current: 4.59
During the past 13 years, the highestGross Margin % of Metalico was 18.09%. The lowest was 4.59%. And the median was 12.65%.
FRA:MT5's Gross Margin % is not ranked
in the Industrial Products industry.
Industry Median: 26.35
vs FRA:MT5: 4.59
Metalico had a gross margin of 4.72% for the quarter that ended in Jun. 2015 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Metalico was -17.80% per year.
Metalico Gross Margin % Historical Data
The historical data trend for Metalico'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 Metalico's Gross Margin %
For the Metal Fabrication subindustry, Metalico'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.
Metalico's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Metalico's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Metalico'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.
Metalico (FRA:MT5) 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
Metalico had a gross margin of 4.72% for the quarter that ended in Jun. 2015 => 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.
Metalico Gross Margin % Related Terms
Thank you for viewing the detailed overview of Metalico's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Metalico Inc was originally organized as a Delaware corporation in August 1997. The Company along with its subsidiaries operates in two distinct business segments; scrap metal recycling and lead metal product fabricating. The Companys operating facilities include thirty-one scrap metal recycling facilities, including a combined aluminum de-oxidizing plant and four lead product manufacturing and fabricating plants. In the Scrap Metal Recycling segment, its operations mainly involves the collection and processing of ferrous and non-ferrous metals. It collects industrial and obsolete scrap metal, process it into reusable forms and supply the recycled metals to its consumers that include electric arc furnace mills, integrated steel mills, foundries, secondary smelters, aluminum recyclers and metal brokers. The Company acquires unprocessed scrap metals mainly in its local and regional markets and sells to consumers nationally and in Canada as well as to exporters and international brokers. Some of the metal commodities it recycles include steel, copper, aluminum, stainless steel, molybdenum, tantalum, platinum, lead and many others. In Lead Fabricating segment, through four physical operations located in three states, the Company consumes approximately 40 to 45 million pounds of lead metal per year that are utilized in more than one hundred different base products. Its products are sold nationally into diverse industries such as roofing, plumbing, radiation shielding for pharmaceutical and power generation, electronic solders, ammunition, automotive, Department of Defense contractors, and others. The Company sells its lead fabrications nationally. Products are sold to distributors, wholesalers, the plumbing and building trades, equipment manufacturers and other consumers. Its lead fabrication facilities compete against two fabricators of similar, but limited products based in the Southwest who distribute nationally and several smaller regional producers of similar products. To a lesser extent, it also competes against products imported from South America, Canada, Europe and Asia. The Company is subject to comprehensive and frequently changing Federal, state and local laws and regulations.
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