Gross Margin % is calculated as gross profit divided by its revenue. Tredegar's Gross Profit for the
three
months ended in Dec. 2023 was $20.6 Mil. Tredegar's Revenue for the
three
months ended in Dec. 2023 was $169.3 Mil. Therefore, Tredegar's Gross Margin % for the quarter that ended in Dec. 2023 was 12.17%.
Warning Sign:
Tredegar Corp gross margin has been in long-term decline. The average rate of decline per year is -8.3%.
The historical rank and industry rank for Tredegar's Gross Margin % or its related term are showing as below:
TG'
s Gross Margin % Range Over the Past 10 Years
Min: 11.18 Med: 16.74 Max: 22.59
Current: 11.18
During the past 13 years, the highestGross Margin % of Tredegar was 22.59%. The lowest was 11.18%. And the median was 16.74%.
TG's Gross Margin % is ranked worse than 88.21% of 2935
companies
in the Industrial Products industry
Industry Median: 26.35
vs TG: 11.18
Tredegar had a gross margin of 12.17% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tredegar was -8.30% per year.
Tredegar Gross Margin % Historical Data
The historical data trend for Tredegar'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 Tredegar's Gross Margin %
For the Metal Fabrication subindustry, Tredegar'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.
Tredegar's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Tredegar's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tredegar'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.
Tredegar (NYSE:TG) 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
Tredegar had a gross margin of 12.17% for the quarter that ended in Dec. 2023 => 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.
Tredegar Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tredegar's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tredegar Corp through its subsidiaries engaged in the manufacture of Polyethylene Plastic films, Polyester Films, and Aluminum Extrusions. Polyethylene Plastic films manufacture plastic films, elastics and laminate materials which are utilized in personal care materials, surface protection films, and specialty and optical lighting applications. It operates through PE Films, Flexible Packaging Films, and Aluminum Extrusions segments. Aluminum Extrusions produce high-quality, soft-alloy and medium-strength aluminum use for building and construction, automotive, consumer durables, machinery and equipment, electrical and distribution markets. It generates revenue from the United States, Asia, and Brazil.
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