Frankland River Olive Co (ASX:FLR) 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
Frankland River Olive Co had a gross margin of 39.36% for the quarter that ended in Dec. 2015 => 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.
Frankland River Olive Co Gross Margin % Related Terms
Frankland River Olive Co Gross Margin % Historical Data
* 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.
Frankland River Olive Co Gross Margin % Competitor Comparison
For the Farm Products subindustry, Frankland River Olive Co'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.
Frankland River Olive Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Frankland River Olive Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Frankland River Olive Co'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.
Frankland River Olive Co (ASX:FLR) has a Gross Margin % of 39.36% as of Dec. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on Frankland River Olive Co and its competitors. This is 27% above median its historical median of 30.98. Over the past decade, Frankland River Olive Co's Gross Margin % has ranged from 3.94 to 68.86.
Is Frankland River Olive Co's Gross Margin % too high?
Frankland River Olive Co's current Gross Margin % of 39.36% is 27% above median its 10-year median of 30.98. Over the past 10 years, this metric has ranged from a low of 3.94 to a high of 68.86. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Frankland River Olive Co's value of 39.36% is 49.3% above this industry median.
How does Frankland River Olive Co's Gross Margin % compare to competitors?
Frankland River Olive Co's Gross Margin % of 39.36% can be compared against companies in the Consumer Packaged Goods industry. The industry median Gross Margin % is 26.37. Frankland River Olive Co's value of 39.36% is 49.3% above this benchmark. Historically, Frankland River Olive Co's own Gross Margin % has ranged from 3.94 to 68.86 over the past decade. While the company's 10-year median is 30.98 vs. the industry median of 26.37, Frankland River Olive Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,902 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Frankland River Olive Co's current Gross Margin % of 39.36% is 49.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Frankland River Olive Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frankland River Olive Co's current Gross Margin % is 39.36%, which is 27% above median its own 10-year median of 30.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frankland River Olive Co stock overvalued right now?
Frankland River Olive Co (ASX:FLR) has a current Gross Margin % of 39.36%. The current Gross Margin % is 39.36%, which is 27% above median its 10-year median of 30.98 and 49.3% above the Consumer Packaged Goods industry median of 26.37. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Frankland River Olive Co (ASX:FLR), the current Gross Margin % is 39.36% as of Dec. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Frankland River Olive Co Ltd was established in 1999. The Company is engaged in growing, harvesting, processing and sale of extra virgin olive oil for Australian and international markets.
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