Insteel Industries (Insteel Industries) Gross Margin % : 12.34% (As of Mar. 2024)

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What is Insteel Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Insteel Industries's Gross Profit for the three months ended in Mar. 2024 was $15.7 Mil. Insteel Industries's Revenue for the three months ended in Mar. 2024 was $127.4 Mil. Therefore, Insteel Industries's Gross Margin % for the quarter that ended in Mar. 2024 was 12.34%.

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

IIIN' s Gross Margin % Range Over the Past 10 Years
Min: 6.6 Med: 14.21 Max: 23.86
Current: 9.84

During the past 13 years, the highest Gross Margin % of Insteel Industries was 23.86%. The lowest was 6.60%. And the median was 14.21%.

IIIN's Gross Margin % is ranked worse than
90.02% of 2935 companies
in the Industrial Products industry
Industry Median: 26.34 vs IIIN: 9.84

Insteel Industries had a gross margin of 12.34% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Insteel Industries was 6.50% per year.

Insteel Industries Gross Margin % Historical Data

The historical data trend for Insteel Industries'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.

* Premium members only.

Insteel Industries Gross Margin % Chart

Insteel Industries Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Gross Margin %

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6.60

11.80

20.58

23.86

10.07

Insteel Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															8.34	12.29	8.88	5.15	12.34

Competitive Comparison of Insteel Industries's Gross Margin %

For the Metal Fabrication subindustry, Insteel Industries'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.

Insteel Industries's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Insteel Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Insteel Industries's Gross Margin % falls into.

Insteel Industries Gross Margin % Calculation

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

Insteel Industries's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )	=	Gross Profit (A: Sep. 2023 )	/	Revenue (A: Sep. 2023 )
	=	65.4	/	649.188
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(649.188 - 583.79)	/	649.188
	=	10.07 %

Insteel Industries's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	15.7	/	127.394
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(127.394 - 111.679)	/	127.394
	=	12.34 %

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.

Insteel Industries (NYSE:IIIN) 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

Insteel Industries had a gross margin of 12.34% 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.

Insteel Industries Gross Margin % Related Terms

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Insteel Industries (Insteel Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Insteel Industries Inc (NYSE:IIIN) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

HZ8:Germany

Address

1373 Boggs Drive, Mount Airy, NC, USA, 27030

Website

https://www.insteel.com

Insteel Industries Inc manufactures steel wire reinforcing products for concrete construction applications. It manufactures and markets PC strand and welded wire reinforcement, including ESM, concrete pipe reinforcement, and standard welded wire reinforcement. The company's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Its concrete reinforcing products consist of two product lines: PC strand and WWR. Insteel generates its geographical revenue from the United States.

Executives

James F Petelle	officer: Vice President	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Richard Wagner	officer: Vice President	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Elizabeth Carroll Southern	officer: Vice President-Administration	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Patrick K. Griffin	officer: Controller and CAO	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Scot R Jafroodi	officer: Chief Accounting Officer	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Woltz H O Iii	director, officer: President and CEO	1373 BOGGS DR, MT AIRY NC 27030
James R. York	officer: Senior Vice President	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
Mark A Carano	officer: Vice President and CFO	13024 BALLANTYNE CORPORATE PLACE, #700, CHARLOTTE NC 28277
Joseph A Rutkowski	director	2100 REXFORD RD, CHARLOTTE NC 28211
Jon M Ruth	director	1373 BOGGS DRIVE, MOUNT AIRY NC 27030
G Kennedy Thompson	director	3000 HANOVER STREET, PALO ALTO CA 94304
Anne H Lloyd	director
Michael C Gazmarian	officer: Treasurer	1373 BOGGS DR, MT AIRY NC 27030
Charles B Newsome	director	1373 BOGGS DR, MT AIRY NC 27030
Rogers W Allen Ii	director	1373 BOGGS DR, MT AIRY NC 27030