CAGU (Castle Group) Gross Margin %: 25.55% (As of Mar. 2018)

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What is Castle Group Gross Margin %?

Castle Group CAGU Gross Margin % is 25.55% as of Mar. 2018.

Gross Margin % is calculated as gross profit divided by its revenue. Castle Group's Gross Profit for the three months ended in Mar. 2018 was $1.81 Mil. Castle Group's Revenue for the three months ended in Mar. 2018 was $7.10 Mil. Therefore, Castle Group's Gross Margin % for the quarter that ended in Mar. 2018 was 25.55%.


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


CAGU's Gross Margin % is not ranked *
in the Travel & Leisure industry.
Industry Median: 43.57
* Ranked among companies with meaningful Gross Margin % only.

Castle Group had a gross margin of 25.55% for the quarter that ended in Mar. 2018 => Competition eroding margins

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


Castle Group  (OTCPK:CAGU) 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

Castle Group had a gross margin of 25.55% for the quarter that ended in Mar. 2018 => 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.


Castle Group Gross Margin % Related Terms


Castle Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for Castle 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.

Castle Group Gross Margin % Chart

Castle Group Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 53.85 51.62 17.94 18.86 19.91

Castle Group Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.73 16.64 18.49 22.55 25.55

Castle Group Gross Margin % Competitor Comparison

For the Lodging subindustry, Castle 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.


Castle Group Gross Margin % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Castle Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Castle Group's Gross Margin % falls into.



Castle Group Gross Margin % Calculation

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

Castle Group's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=5.2 / 26.251
=(Revenue - Cost of Goods Sold) / Revenue
=(26.251 - 21.025) / 26.251
=19.91 %

Castle Group's Gross Margin for the quarter that ended in Mar. 2018 is calculated as


Gross Margin % (Q: Mar. 2018 )=Gross Profit (Q: Mar. 2018 ) / Revenue (Q: Mar. 2018 )
=1.8 / 7.097
=(Revenue - Cost of Goods Sold) / Revenue
=(7.097 - 5.284) / 7.097
=25.55 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 25.55% mean?
Castle Group (CAGU) has a Gross Margin % of 25.55% as of Mar. 2018. Gross margin is the ratio of total gross profit to net sales. View historical data on Castle Group and its competitors.
Is Castle Group's Gross Margin % too high?
Castle Group's current Gross Margin % is 25.55%. The Travel & Leisure industry median Gross Margin % is 43.57. Castle Group's value of 25.55% is 41.4% below this industry median.
How does Castle Group's Gross Margin % compare to competitors?
Castle Group's Gross Margin % of 25.55% can be compared against companies in the Travel & Leisure industry. The industry median Gross Margin % is 43.57. Castle Group's value of 25.55% is 41.4% below 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.57, based on 792 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. Castle Group's current Gross Margin % of 25.55% is 41.4% below 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 Castle Group and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Castle Group's current Gross Margin % is 25.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Castle Group stock overvalued right now?
Castle Group (CAGU) has a current Gross Margin % of 25.55%. The current Gross Margin % is 25.55% and 41.4% below the Travel & Leisure industry median of 43.57. 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 Castle Group (CAGU), the current Gross Margin % is 25.55% as of Mar. 2018. 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.

Castle Group Business Description

Address 500 Ala Moana Boulevard, Suite 555, 3 Waterfront Plaza, Honolulu, HI, USA, 96813
Castle Group Inc operates in the hotel and resort management industry. It offers a range of accommodations at various price points from exclusive private villas, full-service all-suites hotels, oceanfront resort condominiums, to modestly priced hotels with hundreds of guest rooms. It has a diverse portfolio of properties located in desired island resort destinations throughout the Pacific Region providing several types of services to property owners including, hotel and resort management and operations; reservations staffing and operations; sales and marketing. Primary revenue is generated from two sources that are rental of hotel rooms and condominium accommodations along with food and beverage sales at the properties managed and; fees paid for services it provides to property owners.