Gross Margin % is calculated as gross profit divided by its revenue. Greenbrier's Gross Profit for the
three
months ended in Feb. 2024 was $122 Mil. Greenbrier's Revenue for the
three
months ended in Feb. 2024 was $863 Mil. Therefore, Greenbrier's Gross Margin % for the quarter that ended in Feb. 2024 was 14.16%.
Warning Sign:
Greenbrier Companies Inc gross margin has been in long-term decline. The average rate of decline per year is -6.4%.
The historical rank and industry rank for Greenbrier's Gross Margin % or its related term are showing as below:
GBX'
s Gross Margin % Range Over the Past 10 Years
Min: 10.28 Med: 13.94 Max: 20.63
Current: 13.37
During the past 13 years, the highestGross Margin % of Greenbrier was 20.63%. The lowest was 10.28%. And the median was 13.94%.
GBX's Gross Margin % is ranked worse than 68.5% of 946
companies
in the Transportation industry
Industry Median: 19.955
vs GBX: 13.37
Greenbrier had a gross margin of 14.16% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Greenbrier was -6.40% per year.
Greenbrier Gross Margin % Historical Data
The historical data trend for Greenbrier'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.
For the Railroads subindustry, Greenbrier'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.
Greenbrier Gross Margin % Distribution
For the Transportation industry and Industrials sector, Greenbrier's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Greenbrier'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.
Greenbrier (NYSE:GBX) 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
Greenbrier had a gross margin of 14.16% for the quarter that ended in Feb. 2024 => 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.
Greenbrier Gross Margin % Related Terms
Thank you for viewing the detailed overview of Greenbrier's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Greenbrier Companies Inc designs, manufactures, and markets railroad freight car equipment in North America and Europe, marine barges in North America and provides wheel services, railcar refurbishment, and parts, leasing and other services to the railroad. Its segments include Manufacturing, Maintenance Services and Leasing & Management Services. The company generates a majority of its revenue from the manufacturing segment. Geographically, it derives a majority of revenue from the United States.
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