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
PT Arpeni Pratama Ocean Line Tbk had a gross margin of 26.66% for the quarter that ended in Sep. 2019 => 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.
PT Arpeni Pratama Ocean Line Tbk Gross Margin % Related Terms
PT Arpeni Pratama Ocean Line Tbk 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.
PT Arpeni Pratama Ocean Line Tbk Gross Margin % Chart
For the Marine Shipping subindustry, PT Arpeni Pratama Ocean Line Tbk'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.
PT Arpeni Pratama Ocean Line Tbk Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, PT Arpeni Pratama Ocean Line Tbk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PT Arpeni Pratama Ocean Line Tbk'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.
PT Arpeni Pratama Ocean Line Tbk (FRA:A5DA) has a Gross Margin % of 26.66% as of Sep. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on PT Arpeni Pratama Ocean Line Tbk and its competitors. This is 278% above median its historical median of 7.06.
Is PT Arpeni Pratama Ocean Line Tbk's Gross Margin % too high?
PT Arpeni Pratama Ocean Line Tbk's current Gross Margin % of 26.66% is 278% above median its 10-year median of 7.06. The Transportation industry median Gross Margin % is 20.42. PT Arpeni Pratama Ocean Line Tbk's value of 26.66% is 30.6% above this industry median.
How does PT Arpeni Pratama Ocean Line Tbk's Gross Margin % compare to competitors?
PT Arpeni Pratama Ocean Line Tbk's Gross Margin % of 26.66% can be compared against companies in the Transportation industry. The industry median Gross Margin % is 20.42. PT Arpeni Pratama Ocean Line Tbk's value of 26.66% is 30.6% above this benchmark. While the company's 10-year median is 7.06 vs. the industry median of 20.42, PT Arpeni Pratama Ocean Line Tbk 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 977 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. PT Arpeni Pratama Ocean Line Tbk's current Gross Margin % of 26.66% is 30.6% 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 PT Arpeni Pratama Ocean Line Tbk and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Arpeni Pratama Ocean Line Tbk's current Gross Margin % is 26.66%, which is 278% above median its own 10-year median of 7.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Arpeni Pratama Ocean Line Tbk stock overvalued right now?
PT Arpeni Pratama Ocean Line Tbk (FRA:A5DA) has a current Gross Margin % of 26.66%. The current Gross Margin % is 26.66%, which is 278% above median its 10-year median of 7.06 and 30.6% above the Transportation industry median of 20.42. 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 PT Arpeni Pratama Ocean Line Tbk (FRA:A5DA), the current Gross Margin % is 26.66% as of Sep. 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.
PT Arpeni Pratama Ocean Line Tbk Business Description
PT Arpeni Pratama Ocean Line Tbk is Indonesian shipping company. The company is engaged in the domestic and international transportation of cargo by vessels, sale, and purchase of vessels. It uses its vessels for the transport of coal, iron ore, wheat, soybeans, and grains to various countries. In addition, the company also owns and operates the dry bulk fleet, including panamax bulk carriers, tugboats, barges, and floating cranes. The company operates through three segments namely, Shipping Services which also contributes a major part of revenue, Agency Services, and Non-Asset Based Busines. Most of its revenue is earned through the Indonesian market.
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