Transcontinental Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Transcontinental's Gross Margin % or its related term are showing as below:
TCLCF'
s Gross Margin % Range Over the Past 10 Years
Min: 44.78 Med: 49.49 Max: 57.24
Current: 46.74
During the past 13 years, the highestGross Margin % of Transcontinental was 57.24%. The lowest was 44.78%. And the median was 49.49%.
TCLCF's Gross Margin % is ranked better than 92.72% of 371
companies
in the Packaging & Containers industry
Industry Median: 21.6
vs TCLCF: 46.74
Transcontinental had a gross margin of 47.74% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Transcontinental was -1.60% per year.
Transcontinental Gross Margin % Historical Data
The historical data trend for Transcontinental'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 Transcontinental's Gross Margin %
For the Packaging & Containers subindustry, Transcontinental'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.
Transcontinental's Gross Margin % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Transcontinental's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Transcontinental'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.
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
Transcontinental had a gross margin of 47.74% for the quarter that ended in Jan. 2024 => Durable 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.
Transcontinental Gross Margin % Related Terms
Thank you for viewing the detailed overview of Transcontinental's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Transcontinental (Transcontinental) Business Description
Transcontinental Inc or TC Transcontinental, is a Canadian printer and flexible packaging provider that operates in three segments: packaging, printing, and other. Its packaging segment features the production of different plastic products geared toward consumer goods. Production plants specialize in extrusion, lamination, printing, and converting. The company offers premedia, printing, and distribution services through the printing segment. Publishers, retailers, cataloguers, and marketers are some of the customers who tap TC Transcontinental for these printing solutions. The smaller other segment focuses on the media sector, which generates revenue from print and digital publishing products.
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