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KapStone Paper And Packaging (KapStone Paper And Packaging) Gross Margin % : 33.61% (As of Sep. 2018)


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What is KapStone Paper And Packaging Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KapStone Paper And Packaging's Gross Profit for the three months ended in Sep. 2018 was $300 Mil. KapStone Paper And Packaging's Revenue for the three months ended in Sep. 2018 was $894 Mil. Therefore, KapStone Paper And Packaging's Gross Margin % for the quarter that ended in Sep. 2018 was 33.61%.


The historical rank and industry rank for KapStone Paper And Packaging's Gross Margin % or its related term are showing as below:


KS's Gross Margin % is not ranked *
in the Forest Products industry.
Industry Median: 19.84
* Ranked among companies with meaningful Gross Margin % only.

KapStone Paper And Packaging had a gross margin of 33.61% for the quarter that ended in Sep. 2018 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for KapStone Paper And Packaging was 0.00% per year.


KapStone Paper And Packaging Gross Margin % Historical Data

The historical data trend for KapStone Paper And Packaging'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.

KapStone Paper And Packaging Gross Margin % Chart

KapStone Paper And Packaging Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.10 32.57 28.92 28.02 28.68

KapStone Paper And Packaging Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.26 31.85 30.58 30.38 33.61

Competitive Comparison of KapStone Paper And Packaging's Gross Margin %

For the Paper & Paper Products subindustry, KapStone Paper And Packaging'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.


KapStone Paper And Packaging's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, KapStone Paper And Packaging's Gross Margin % distribution charts can be found below:

* The bar in red indicates where KapStone Paper And Packaging's Gross Margin % falls into.



KapStone Paper And Packaging Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

KapStone Paper And Packaging's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=950.9 / 3315.66
=(Revenue - Cost of Goods Sold) / Revenue
=(3315.66 - 2364.731) / 3315.66
=28.68 %

KapStone Paper And Packaging's Gross Margin for the quarter that ended in Sep. 2018 is calculated as


Gross Margin % (Q: Sep. 2018 )=Gross Profit (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=300.4 / 893.595
=(Revenue - Cost of Goods Sold) / Revenue
=(893.595 - 593.231) / 893.595
=33.61 %

* 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.


KapStone Paper And Packaging  (NYSE:KS) 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

KapStone Paper And Packaging had a gross margin of 33.61% for the quarter that ended in Sep. 2018 => 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.


KapStone Paper And Packaging Gross Margin % Related Terms

Thank you for viewing the detailed overview of KapStone Paper And Packaging's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


KapStone Paper And Packaging (KapStone Paper And Packaging) Business Description

Traded in Other Exchanges
N/A
Address
KapStone Paper and Packaging Corp produces and sells containerboard, corrugated products, and specialty paper. The company organizes itself into two segments based on function: paper and packaging and distribution. The paper and packaging segment, which generates the majority of revenue, sells packaging products primarily to food and beverage manufacturers and retailers. The segment also sells specialty paper products. The distribution segment operates a packaging materials distribution business under the Victory and Golden State Container trade names. The vast majority of revenue comes from the United States.
Executives
Paula H Cholmondeley director 221 W PHILADELPHIA ST, SUITE 60W, YORK PA 17401-2991
Matthew H Paull director MCDONALDS CORP, 2915 JORIE BLVD, OAK BROOK IL 60523
Roger W Stone director, officer: Executive Chairman KAPSTONE PAPER & PKG. CORP., 1101 SKOKIE BOULEVARD, STE 300, NORTHBROOK IL 60062-6141
Robert J Bahash director 1221 AVENUE OF THE AMERICAS, NEW YORK NY 10020
David P Storch director C/O AAR CORP, 1111 NICHOLAS BLVD, 1111 NICHOLAS BLVD IL 60007
Kathryn D. Ingraham officer: VP, Secy & Gen Counsel KAPSTONE PAPER AND PACKAGING CORPORATION, 1101 SKOKIE BLVD., STE. 300, NORTHBROOK IL 60062
Brian R Gamache director
Randy J. Nebel officer: Exec. VP. Integrated Packaging KAPSTONE PAPER AND PACKAGING CORP. 1101 SKOKIE BLVD., SUITE 300 NORTHBROOK IL 60062
Andrea K Tarbox officer: Exec. VP and CFO ONE NORTHFIELD PLAZA, STE. 480, NORTHFIELD IL 60093
Maurice S Reznik director C/O MAIDENFORM BRANDS, INC., 154 AVENUE E, BAYONNE NJ 07002
Jonathan R Furer director 45 PARK STREET, TENAFLY NJ 07670
S Jay Stewart director 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606
Harvey Hanerfeld 10 percent owner 1919 PENNSYLVANIA AVENUE NW, SUITE 725, WASHINGTON DC 20006
Ned L Sherwood 10 percent owner 54 MORRIS LN, SCARSDALE NY 10583
Jonathan M Glaser 10 percent owner 11601 WILSHIRE BLVD., SUITE 2180, LOS ANGELES CA 90025

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