Gross Margin % is calculated as gross profit divided by its revenue. Kaydon's Gross Profit for the
three
months ended in Jun. 2013 was €33.0 Mil. Kaydon's Revenue for the
three
months ended in Jun. 2013 was €88.9 Mil. Therefore, Kaydon's Gross Margin % for the quarter that ended in Jun. 2013 was 37.15%.
The historical rank and industry rank for Kaydon's Gross Margin % or its related term are showing as below:
FRA:KYD's Gross Margin % is not ranked *
in the Industrial Products industry.
Industry Median: 26.55 * Ranked among companies with meaningful Gross Margin % only.
Kaydon had a gross margin of 37.15% for the quarter that ended in Jun. 2013 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Kaydon was 0.00% per year.
Kaydon Gross Margin % Historical Data
The historical data trend for Kaydon'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.
For the Tools & Accessories subindustry, Kaydon'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.
Kaydon's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kaydon's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kaydon'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.
Kaydon (FRA:KYD) 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
Kaydon had a gross margin of 37.15% for the quarter that ended in Jun. 2013 => 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.
Kaydon Gross Margin % Related Terms
Thank you for viewing the detailed overview of Kaydon's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kaydon Corporation was incorporated in 1983. The Company is a designer and manufacturer of custom engineered, performance-critical products supplying a broad and diverse customer base. The Company's main products now include bearings and components, filters and filter housings, custom rings, shaft seals, linear deceleration products, specialty balls, fuel cleansing systems, gas-phase air filtration systems and replacement media, industrial presses and metal alloy products. These products are used by customers in a variety of alternative energy, specialized robotics, medical, material handling, machine tool positioning, aerospace, defense, security, electronic and other industrial applications. The Company has two reportable segments and other operating segments engaged in the manufacture and sale of the following: Friction Control Products - complex components used in alternative energy, specialized robotics, medical, aerospace, defense, security, electronic, material handling, construction and other industrial applications. Products include anti-friction bearings, split roller bearings and specialty balls; Velocity Control Products - complex components used in specialized robotics, material handling, machine tool, medical, amusement and other industrial applications. Products include industrial shock absorbers, safety shock absorbers, velocity controls, gas springs and rotary dampers; and Other Industrial Products - complex and standard ring and seal products, filter elements and liquid and gas-phase filtration systems, metal alloys, machine tool components, presses, dies and benders used in a variety of applications. The Company sells its products in each segment through a sales organization consisting of salespersons and representatives located primarily throughout North America, Europe and Asia. The Company holds various patents, patent applications, licenses, trademarks and trade names. The Company's competitors include a number of other well-established manufacturers, as well as other smaller companies.
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