The historical rank and industry rank for PRO-PAC Packaging's Gross Margin % or its related term are showing as below:
ASX:PPG's Gross Margin % is not ranked *
in the Packaging & Containers industry.
Industry Median: 21.28 * Ranked among companies with meaningful Gross Margin % only.
PRO-PAC Packaging had a gross margin of 42.37% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PRO-PAC Packaging was 0.00% per year.
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
PRO-PAC Packaging had a gross margin of 42.37% for the quarter that ended in Dec. 2024 => Durable 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.
PRO-PAC Packaging Gross Margin % Related Terms
PRO-PAC Packaging Gross Margin % Historical Data
* Premium members only.
The historical data trend for PRO-PAC 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.
ASX:PPG vs IP, SW, AMCR: Gross Margin % Comparison
For the Packaging & Containers subindustry, PRO-PAC 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.
PRO-PAC Packaging Gross Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, PRO-PAC Packaging's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PRO-PAC Packaging'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.
PRO-PAC Packaging (ASX:PPG) has a Gross Margin % of 42.37% as of Dec. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on PRO-PAC Packaging and its competitors.
Is PRO-PAC Packaging's Gross Margin % too high?
PRO-PAC Packaging's current Gross Margin % is 42.37%. The Packaging & Containers industry median Gross Margin % is 21.28. PRO-PAC Packaging's value of 42.37% is 99.1% above this industry median. Overall, PRO-PAC Packaging has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does PRO-PAC Packaging's Gross Margin % compare to IP and SW?
PRO-PAC Packaging's Gross Margin % of 42.37% can be compared against companies in the Packaging & Containers industry. The industry median Gross Margin % is 21.28. PRO-PAC Packaging's value of 42.37% is 99.1% above this benchmark. 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 Packaging & Containers company?
The median Gross Margin % among Packaging & Containers companies is 21.28, based on 379 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. PRO-PAC Packaging's current Gross Margin % of 42.37% is 99.1% 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 PRO-PAC Packaging and its competitors. For the Packaging & Containers industry, the median Gross Margin % is 21.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PRO-PAC Packaging's current Gross Margin % is 42.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PRO-PAC Packaging stock overvalued right now?
PRO-PAC Packaging (ASX:PPG) has a current Gross Margin % of 42.37%. The current Gross Margin % is 42.37% and 99.1% above the Packaging & Containers industry median of 21.28. PRO-PAC Packaging's overall GF Score™ is 8/100. 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 PRO-PAC Packaging (ASX:PPG), the current Gross Margin % is 42.37% as of Dec. 2024. 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.
PRO-PAC Packaging Ltd is engaged in the manufacture and distribution of flexible, industrial, and rigid packaging products. The company's operating segment includes Flexibles; Specialty; and Unallocated. It generates maximum revenue from the Flexibles segment. The Flexibles packaging segment manufactures flexible packaging materials incorporating products such as stretch and shrink wrap, agricultural silage packaging, fresh produce bags, barrier and lidding films, and industrial protective films. Geographically, it derives a majority of its revenue from Australia and also has a presence in New Zealand.
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