Gross Margin % is calculated as gross profit divided by its revenue. Graham's Gross Profit for the
three
months ended in Dec. 2023 was $9.7 Mil. Graham's Revenue for the
three
months ended in Dec. 2023 was $43.8 Mil. Therefore, Graham's Gross Margin % for the quarter that ended in Dec. 2023 was 22.19%.
Warning Sign:
Graham Corp gross margin has been in long-term decline. The average rate of decline per year is -13.2%.
The historical rank and industry rank for Graham's Gross Margin % or its related term are showing as below:
GHM'
s Gross Margin % Range Over the Past 10 Years
Min: 7.43 Med: 22.88 Max: 31.12
Current: 19.53
During the past 13 years, the highestGross Margin % of Graham was 31.12%. The lowest was 7.43%. And the median was 22.88%.
GHM's Gross Margin % is ranked worse than 69.44% of 2935
companies
in the Industrial Products industry
Industry Median: 26.44
vs GHM: 19.53
Graham had a gross margin of 22.19% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Graham was -13.20% per year.
Graham Gross Margin % Historical Data
The historical data trend for Graham'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.
Graham Annual Data
Trend
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
Mar22
Mar23
Gross Margin %
23.86
20.03
21.00
7.43
16.17
Graham Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
15.62
16.63
23.08
15.95
22.19
Competitive Comparison
For the Specialty Industrial Machinery subindustry, Graham'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.
Graham Gross Margin % Distribution
For the Industrial Products industry and Industrials sector, Graham's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Graham'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.
Graham (NYSE:GHM) 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
Graham had a gross margin of 22.19% 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.
Graham Gross Margin % Related Terms
Thank you for viewing the detailed overview of Graham's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Graham Corporation manufactures and sells critical equipment for the energy, defense, and chemical/petrochemical industries based with emphasis on the United States. Its suite of products includes ejectors, surface condensers, turbopumps, compressors and liquid vacuum pumps, among others. For the defense industry, its equipment is used in nuclear propulsion power systems for the U.S. Navy. For the chemical and petrochemical industries, its equipment is used in fertilizer, ethylene, methanol and downstream chemical facilities. The company derives key revenue from the sale of Heat transfer equipment. It derives revenue from the US and other countries.
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