Phibro Animal Health Corp gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Phibro Animal Health's Gross Margin % or its related term are showing as below:
FRA:PB8'
s Gross Margin % Range Over the Past 10 Years
Min: 29.54 Med: 31.89 Max: 32.56
Current: 30.27
During the past 13 years, the highestGross Margin % of Phibro Animal Health was 32.56%. The lowest was 29.54%. And the median was 31.89%.
FRA:PB8's Gross Margin % is ranked worse than 77.81% of 987
companies
in the Drug Manufacturers industry
Industry Median: 47.04
vs FRA:PB8: 30.27
Phibro Animal Health had a gross margin of 30.24% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Phibro Animal Health was -1.30% per year.
Phibro Animal Health Gross Margin % Historical Data
The historical data trend for Phibro Animal Health'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 Phibro Animal Health's Gross Margin %
For the Drug Manufacturers - Specialty & Generic subindustry, Phibro Animal Health'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.
Phibro Animal Health's Gross Margin % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Phibro Animal Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Phibro Animal Health'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.
Phibro Animal Health (FRA:PB8) 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
Phibro Animal Health had a gross margin of 30.24% 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.
Phibro Animal Health Gross Margin % Related Terms
Thank you for viewing the detailed overview of Phibro Animal Health's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Phibro Animal Health (FRA:PB8) Business Description
Phibro Animal Health Corp operates as a diversified animal health and mineral nutrition company. It develops, manufactures, and markets products for a range of food animals comprising poultry, swine, beef and dairy cattle, and aquaculture. The product portfolio of the company includes animal health products such as antibacterials, anticoccidials, nutritional specialty products and vaccines, and mineral nutrition products. The company operates through three segments, Animal Health, Mineral Nutrition, and Performance Products, of which key revenue is derived from the Animal Health segment which relates to the development, manufacturing, and marketing of antibacterials, nutritional specialty products, and vaccines. The entity sells its products in the U.S. and other international countries.
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