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Genesee & Wyoming (Genesee & Wyoming) Gross Margin % : 28.47% (As of Sep. 2019)


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What is Genesee & Wyoming Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Genesee & Wyoming's Gross Profit for the three months ended in Sep. 2019 was $166 Mil. Genesee & Wyoming's Revenue for the three months ended in Sep. 2019 was $584 Mil. Therefore, Genesee & Wyoming's Gross Margin % for the quarter that ended in Sep. 2019 was 28.47%.

Warning Sign:

Genesee & Wyoming Inc gross margin has been in long term decline. The average rate of decline per year is -6%.


The historical rank and industry rank for Genesee & Wyoming's Gross Margin % or its related term are showing as below:

GWR' s Gross Margin % Range Over the Past 10 Years
Min: 25.05   Med: 30.6   Max: 46.68
Current: 25.7


During the past 13 years, the highest Gross Margin % of Genesee & Wyoming was 46.68%. The lowest was 25.05%. And the median was 30.60%.

GWR's Gross Margin % is not ranked
in the Transportation industry.
Industry Median: 20.25 vs GWR: 25.70

Genesee & Wyoming had a gross margin of 28.47% for the quarter that ended in Sep. 2019 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Genesee & Wyoming was -6.00% per year.


Genesee & Wyoming Gross Margin % Historical Data

The historical data trend for Genesee & Wyoming'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.

Genesee & Wyoming Gross Margin % Chart

Genesee & Wyoming Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.39 27.04 25.05 25.54 25.19

Genesee & Wyoming Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 28.01 25.63 22.91 25.59 28.47

Competitive Comparison of Genesee & Wyoming's Gross Margin %

For the Railroads subindustry, Genesee & Wyoming'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.


Genesee & Wyoming's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Genesee & Wyoming's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Genesee & Wyoming's Gross Margin % falls into.



Genesee & Wyoming Gross Margin % Calculation

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

Genesee & Wyoming's Gross Margin for the fiscal year that ended in Dec. 2018 is calculated as

Gross Margin % (A: Dec. 2018 )=Gross Profit (A: Dec. 2018 ) / Revenue (A: Dec. 2018 )
=591.6 / 2348.55
=(Revenue - Cost of Goods Sold) / Revenue
=(2348.55 - 1756.925) / 2348.55
=25.19 %

Genesee & Wyoming's Gross Margin for the quarter that ended in Sep. 2019 is calculated as


Gross Margin % (Q: Sep. 2019 )=Gross Profit (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 )
=166.2 / 583.694
=(Revenue - Cost of Goods Sold) / Revenue
=(583.694 - 417.535) / 583.694
=28.47 %

* 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.


Genesee & Wyoming  (NYSE:GWR) 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

Genesee & Wyoming had a gross margin of 28.47% for the quarter that ended in Sep. 2019 => 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.


Genesee & Wyoming Gross Margin % Related Terms

Thank you for viewing the detailed overview of Genesee & Wyoming's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Genesee & Wyoming (Genesee & Wyoming) Business Description

Traded in Other Exchanges
N/A
Address
20 West Avenue, Darien, CT, USA, 06820
Genesee & Wyoming manages one of the largest portfolios of short-line/regional freight railroads in North America. About 58% of revenue comes from its core North American short-line business, while its rail lines in Australia make up 14%. Roughly 28% comes from its Europe/U.K. division, which includes its European heavy haul and intermodal operations (Freightliner) that were acquired in early 2015.
Executives
Albert J Neupaver director
Hunter C Smith director C/O GENESEE & WYOMING INC., 20 WEST AVENUE, DARIEN CT 06820
Richard Harold Bott director 34 ISLAND DRIVE, RYE NY 10580
J H Pyne director
Oivind Lorentzen director C/O SEACOR SMIT, INC., 460 PARK AVENUE 12TH FLOOR, NEW YORK NY 10022
Mark A Scudder director 411 S. 13TH STREET, SUITE 200, LINCOLN NE 68508
Cynthia Lynn Hostetler director C/O EDGEN MURRAY CORPORATION, 18444 HIGHLAND ROAD, BATON ROUGE LA 70809
Ann N Reese director C/O GENESEE & WYOMING INC., 66 FIELD POINT ROAD, GREENWICH CT 06901
David A Brown officer: Chief Operating Officer GENESEE & WYOMING INC., 66 FIELD POINT ROAD, GREENWICH CT 06830
Hans Michael Norkus director OVERLAND STORAGE, INC., 4820 OVERLAND AVENUE, SAN DIEGO CA 92123
Robert M Melzer director 61 MONMOUTH ST., ., BROOKLINE MA 02446-5605
Tc Group V, L.l.c. 10 percent owner C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVE., N.W., SUITE 220S, WASHINGTON DC 20004
Tc Group Cayman Investment Holdings, L.p. 10 percent owner C/O WALKERS CORPORATE SERVICES LIMITED, 190 ELGIN AVENUE, GEORGE TOWN, GRAND CAYMAN E9 KY1-9001
Carlyle Group Inc. 10 percent owner C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004
Carlyle Holdings Ii L.l.c. 10 percent owner C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505