Student Transportation (Student Transportation) Gross Margin % : 26.08% (As of Dec. 2017)

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What is Student Transportation Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Student Transportation's Gross Profit for the three months ended in Dec. 2017 was $50.6 Mil. Student Transportation's Revenue for the three months ended in Dec. 2017 was $193.9 Mil. Therefore, Student Transportation's Gross Margin % for the quarter that ended in Dec. 2017 was 26.08%.

The historical rank and industry rank for Student Transportation's Gross Margin % or its related term are showing as below:

STB's Gross Margin % is not ranked ^*
in the Transportation industry.
Industry Median: 20.25
* Ranked among companies with meaningful Gross Margin % only.

Student Transportation had a gross margin of 26.08% for the quarter that ended in Dec. 2017 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Student Transportation was 0.00% per year.

Student Transportation Gross Margin % Historical Data

The historical data trend for Student Transportation'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.

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Student Transportation Gross Margin % Chart

Student Transportation Annual Data

Trend

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Gross Margin %

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25.65

23.79

22.93

23.73

23.89

Student Transportation Quarterly Data
	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17
Gross Margin %	Get a 7-Day Free Trial															26.33	26.07	25.66	12.40	26.08

Competitive Comparison of Student Transportation's Gross Margin %

For the Railroads subindustry, Student Transportation'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.

Student Transportation's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Student Transportation's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Student Transportation's Gross Margin % falls into.

Student Transportation Gross Margin % Calculation

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

Student Transportation's Gross Margin for the fiscal year that ended in Jun. 2017 is calculated as

Gross Margin % (A: Jun. 2017 )	=	Gross Profit (A: Jun. 2017 )	/	Revenue (A: Jun. 2017 )
	=	152.2	/	637.317
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(637.317 - 485.091)	/	637.317
	=	23.89 %

Student Transportation's Gross Margin for the quarter that ended in Dec. 2017 is calculated as

Gross Margin % (Q: Dec. 2017 )	=	Gross Profit (Q: Dec. 2017 )	/	Revenue (Q: Dec. 2017 )
	=	50.6	/	193.856
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(193.856 - 143.294)	/	193.856
	=	26.08 %

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.

Student Transportation (NAS:STB) 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

Student Transportation had a gross margin of 26.08% for the quarter that ended in Dec. 2017 => 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.

Student Transportation Gross Margin % Related Terms

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Student Transportation (Student Transportation) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Student Transportation Inc (NAS:STB) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

Website

http://www.ridesta.com

Student Transportation Inc is a Canadian company which provides school transportation and management services to public and private schools in both the United States and Canada. Services provided by the company are managed transportation which covers driver recruiting and training, safety, vehicle maintenance, insurance and routing/scheduling, special needs transportation with specially equipped buses and bus routes to specialized schools, charter services for special events and extracurricular activities, Direct-To-Parent school bus service. The company operates its business in two segments namely transportation segment and an oil and gas segment in US and Canada. The majority of the company's revenue comes from transportation business in the US.