The historical rank and industry rank for Powell Industries's Gross Margin % or its related term are showing as below:
POWL'
s Gross Margin % Range Over the Past 10 Years
Min: 12.82 Med: 16.59 Max: 23
Current: 23
During the past 13 years, the highestGross Margin % of Powell Industries was 23.00%. The lowest was 12.82%. And the median was 16.59%.
POWL's Gross Margin % is ranked worse than 60.2% of 2937
companies
in the Industrial Products industry
Industry Median: 26.45
vs POWL: 23.00
Powell Industries had a gross margin of 24.84% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Powell Industries was 4.60% per year.
Powell Industries Gross Margin % Historical Data
The historical data trend for Powell Industries'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 Powell Industries's Gross Margin %
For the Electrical Equipment & Parts subindustry, Powell Industries'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.
Powell Industries's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Powell Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Powell Industries'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
Powell Industries had a gross margin of 24.84% for the quarter that ended in Dec. 2023 => 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.
Powell Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Powell Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Powell Industries (Powell Industries) Business Description
Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company's principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States.
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