Gross Margin % is calculated as gross profit divided by its revenue. Hub Group's Gross Profit for the
three
months ended in Mar. 2024 was $76 Mil. Hub Group's Revenue for the
three
months ended in Mar. 2024 was $999 Mil. Therefore, Hub Group's Gross Margin % for the quarter that ended in Mar. 2024 was 7.65%.
The historical rank and industry rank for Hub Group's Gross Margin % or its related term are showing as below:
HUBG'
s Gross Margin % Range Over the Past 10 Years
Min: 10.37 Med: 12.02 Max: 15.92
Current: 15.92
During the past 13 years, the highestGross Margin % of Hub Group was 15.92%. The lowest was 10.37%. And the median was 12.02%.
HUBG's Gross Margin % is ranked worse than 62.09% of 947
companies
in the Transportation industry
Industry Median: 20.12
vs HUBG: 15.92
Hub Group had a gross margin of 7.65% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hub Group was -0.40% per year.
Hub Group Gross Margin % Historical Data
The historical data trend for Hub Group'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 Hub Group's Gross Margin %
For the Integrated Freight & Logistics subindustry, Hub Group'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.
Hub Group's Gross Margin % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Hub Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hub Group'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.
Hub Group (NAS:HUBG) 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
Hub Group had a gross margin of 7.65% for the quarter that ended in Mar. 2024 => 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.
Hub Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hub Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hub Group ranks among the largest providers of rail intermodal service. Roughly 60% of revenue comes from Hub's intermodal and transportation solutions division. ITS includes its flagship intermodal operations, which use the Class I rail carriers for the underlying line-haul movement of containers, as well as its dedicated truckload shipping unit. Asset light truckload and LTL brokerage makes up around 20%. The remaining 20% reflects Hub's logistics division, which provides outsourced transportation management, warehousing and fulfillment, and heavy-goods final mile delivery. Hub is somewhat acquisitive in that it often makes tuck-in acquisitions which expand its brokerage, logistics, and dedicated truckload offerings.
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