Pactiv Evergreen Inc gross margin has been in long-term decline. The average rate of decline per year is -3.7%.
The historical rank and industry rank for Pactiv Evergreen's Gross Margin % or its related term are showing as below:
PTVE'
s Gross Margin % Range Over the Past 10 Years
Min: 10.56 Med: 16.18 Max: 22.42
Current: 13.3
During the past 11 years, the highestGross Margin % of Pactiv Evergreen was 22.42%. The lowest was 10.56%. And the median was 16.18%.
PTVE's Gross Margin % is ranked worse than 79.95% of 369
companies
in the Packaging & Containers industry
Industry Median: 21.6
vs PTVE: 13.30
Pactiv Evergreen had a gross margin of 19.86% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pactiv Evergreen was -3.70% per year.
Pactiv Evergreen Gross Margin % Historical Data
The historical data trend for Pactiv Evergreen'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 Pactiv Evergreen's Gross Margin %
For the Packaging & Containers subindustry, Pactiv Evergreen'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.
Pactiv Evergreen's Gross Margin % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Pactiv Evergreen's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pactiv Evergreen'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
Pactiv Evergreen had a gross margin of 19.86% 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.
Pactiv Evergreen Gross Margin % Related Terms
Thank you for viewing the detailed overview of Pactiv Evergreen's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Pactiv Evergreen (Pactiv Evergreen) Business Description
Pactiv Evergreen Inc is engaged in the business of manufacturing and distributing fresh foodservice and food merchandising products and fresh beverage cartons. It operates in three segments: Foodservice, Food Merchandising, and Beverage Merchandising. These segments manufacture a broad range of products such as food containers, drinkware, tableware, service ware, ready-to-eat food containers, clear rigid-display containers, trays for meat and poultry, molded fiber egg cartons, printed cartons, spouts & filling machines, and other products. The company's geographical segments are the United States, the Rest of North America, and Others, of which the vast majority of its revenue comes from the United States.
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