Gross Margin % is calculated as gross profit divided by its revenue. Post Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $573 Mil. Post Holdings's Revenue for the
three
months ended in Dec. 2023 was $1,966 Mil. Therefore, Post Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 29.13%.
Warning Sign:
Post Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Post Holdings's Gross Margin % or its related term are showing as below:
POST'
s Gross Margin % Range Over the Past 10 Years
Min: 25.08 Med: 29.15 Max: 31.54
Current: 27.6
During the past 13 years, the highestGross Margin % of Post Holdings was 31.54%. The lowest was 25.08%. And the median was 29.15%.
POST's Gross Margin % is ranked better than 56.22% of 1809
companies
in the Consumer Packaged Goods industry
Industry Median: 25.04
vs POST: 27.60
Post Holdings had a gross margin of 29.13% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Post Holdings was -3.50% per year.
Post Holdings Gross Margin % Historical Data
The historical data trend for Post Holdings'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 Post Holdings's Gross Margin %
For the Packaged Foods subindustry, Post Holdings'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.
Post Holdings's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Post Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Post Holdings'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.
Post Holdings (NYSE:POST) 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
Post Holdings had a gross margin of 29.13% 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.
Post Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Post Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Post Holdings (Post Holdings) Business Description
Post Holdings Inc is an consumer packaged goods holding company. It operates in Post Consumer Brands which Includes branded and private label ready-to-eat cereals, Weetabix it Includes the businesses of Weetabix Limited, which Post acquired in July 2017 and which produces and distributes branded and private label RTE cereal, hot cereals and other cereal-based food products, Foodservice which Includes primarily egg and potato products in the foodservice and food ingredient channels from the businesses of MFI Holding Corporation, lastly Refrigerated Retail segment Provides refrigerated retail products, inclusive of side dishes, eggs and egg products, sausage, cheese and other dairy and refrigerated products.
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