Magellan Aerospace Corp gross margin has been in long-term decline. The average rate of decline per year is -17.7%.
The historical rank and industry rank for Magellan Aerospace's Gross Margin % or its related term are showing as below:
FRA:4M7A'
s Gross Margin % Range Over the Past 10 Years
Min: 4.59 Med: 15.66 Max: 18.08
Current: 10.16
During the past 13 years, the highestGross Margin % of Magellan Aerospace was 18.08%. The lowest was 4.59%. And the median was 15.66%.
FRA:4M7A's Gross Margin % is ranked worse than 85.19% of 297
companies
in the Aerospace & Defense industry
Industry Median: 26.03
vs FRA:4M7A: 10.16
Magellan Aerospace had a gross margin of 10.12% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Magellan Aerospace was -17.70% per year.
Magellan Aerospace Gross Margin % Historical Data
The historical data trend for Magellan Aerospace'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 Magellan Aerospace's Gross Margin %
For the Aerospace & Defense subindustry, Magellan Aerospace'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.
Magellan Aerospace's Gross Margin % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Magellan Aerospace's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Magellan Aerospace'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.
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
Magellan Aerospace had a gross margin of 10.12% for the quarter that ended in Mar. 2024 => 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.
Magellan Aerospace Gross Margin % Related Terms
Thank you for viewing the detailed overview of Magellan Aerospace's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Magellan Aerospace (FRA:4M7A) Business Description
Magellan Aerospace Corp supplies components to the aerospace industry. It has two major product groups: aerostructures and aeroengines. Its engines and parts may be applied to new aircraft, or as replacement parts to existing platforms. The company also provides aftermarket support by conducting specific repairs and other maintenance services. It serves both commercial (approximately three-fourths of total sales) and defense markets. Additionally, parts and equipment may be provided for power generation projects, but sales do not constitute a material amount. The three geographic regions to which Magellan primarily sells are Canada, the United States, and Europe.
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