CHSCHSCP.PFD -0.59% Gross Margin % is 6.59% as of Feb. 2019, which is 68% above its 10-year median of 3.93. The stock has 1 warning sign investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. CHS's Gross Profit for the
three
months ended in Feb. 2019 was $427.41 Mil. CHS's Revenue for the
three
months ended in Feb. 2019 was $6,483.54 Mil. Therefore, CHS's Gross Margin % for the quarter that ended in Feb. 2019 was 6.59%.
The historical rank and industry rank for CHS's Gross Margin % or its related term are showing as below:
CHSCP.PFD'
s Gross Margin % Range Over the Past 10 Years
Min: 3.42 Med: 3.93 Max: 6.31
Current: 6.22
During the past 13 years, the highestGross Margin % of CHS was 6.31%. The lowest was 3.42%. And the median was 3.93%.
CHSCP.PFD's Gross Margin % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 26.37
vs CHSCP.PFD: 6.22
CHS had a gross margin of 6.59% for the quarter that ended in Feb. 2019 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CHS was 3.80% per year.
CHS (NAS:CHSCP.PFD) 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
CHS had a gross margin of 6.59% for the quarter that ended in Feb. 2019 => 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.
CHS Gross Margin % Related Terms
CHS Gross Margin % Historical Data
* Premium members only.
The historical data trend for CHS'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.
CHSCP.PFD vs LNDC, LMNR, AEPLF: Gross Margin % Comparison
For the Farm Products subindustry, CHS'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.
CHS Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CHS'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.
CHS (CHSCP.PFD) has a Gross Margin % of 6.59% as of Feb. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on CHS and its competitors. This is 68% above median its historical median of 3.93. Over the past decade, CHS's Gross Margin % has ranged from 3.42 to 6.31.
Is CHS's Gross Margin % too high?
CHS's current Gross Margin % of 6.59% is 68% above median its 10-year median of 3.93. Over the past 10 years, this metric has ranged from a low of 3.42 to a high of 6.31. The Consumer Packaged Goods industry median Gross Margin % is 26.37. CHS's value of 6.59% is 75% below this industry median.
How does CHS's Gross Margin % compare to LNDC and LMNR?
CHS's Gross Margin % of 6.59% can be compared against companies in the Consumer Packaged Goods industry. The industry median Gross Margin % is 26.37. CHS's value of 6.59% is 75% below this benchmark. Historically, CHS's own Gross Margin % has ranged from 3.42 to 6.31 over the past decade. While the company's 10-year median is 3.93 vs. the industry median of 26.37, CHS has consistently been below 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. CHS's current Gross Margin % of 6.59% is 75% 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 CHS 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. CHS's current Gross Margin % is 6.59%, which is 68% above median its own 10-year median of 3.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCP.PFD) has a current Gross Margin % of 6.59%. The current Gross Margin % is 6.59%, which is 68% above median its 10-year median of 3.93 and 75% below 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 CHS (CHSCP.PFD), the current Gross Margin % is 6.59% as of Feb. 2019. 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.
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).
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