The historical rank and industry rank for Alamo Group's Gross Margin % or its related term are showing as below:
ALG'
s Gross Margin % Range Over the Past 10 Years
Min: 23.02 Med: 25.16 Max: 26.85
Current: 25.33
During the past 13 years, the highestGross Margin % of Alamo Group was 26.85%. The lowest was 23.02%. And the median was 25.16%.
ALG's Gross Margin % is ranked better than 50% of 206
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.23
vs ALG: 25.33
Alamo Group had a gross margin of 23.82% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Alamo Group was 1.00% per year.
Alamo Group Gross Margin % Historical Data
The historical data trend for Alamo Group'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 Alamo Group's Gross Margin %
For the Farm & Heavy Construction Machinery subindustry, Alamo Group'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.
Alamo Group's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alamo Group'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.
Alamo Group (NYSE:ALG) 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
Alamo Group had a gross margin of 23.82% for the quarter that ended in Dec. 2024 => 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.
Alamo Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Alamo Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Alamo Group Inc is engaged in the design, manufacture, and servicing of high-quality vegetation management and infrastructure maintenance equipment for governmental, industrial and agricultural use. Its products include tractor-mounted and self-propelled mowers, zero-turn mowers, agricultural implements, tree and branch chippers, forestry/wood recycling equipment, street and parking lot sweepers, leaf and debris collection equipment, truck mounted highway attenuator trucks, vacuum trucks, hydro-excavation equipment, telescopic boom excavators, and snow removal equipment. The company's reportable segments are Vegetation Management and Industrial Equipment. It generates a majority of revenue from Vegetation Management. Geographically, it generates the majority of revenue from United States.
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