Gross Margin % is calculated as gross profit divided by its revenue. Kadant's Gross Profit for the
three
months ended in Dec. 2024 was $112 Mil. Kadant's Revenue for the
three
months ended in Dec. 2024 was $258 Mil. Therefore, Kadant's Gross Margin % for the quarter that ended in Dec. 2024 was 43.35%.
The historical rank and industry rank for Kadant's Gross Margin % or its related term are showing as below:
KAI'
s Gross Margin % Range Over the Past 10 Years
Min: 41.69 Med: 43.79 Max: 46.17
Current: 44.25
During the past 13 years, the highestGross Margin % of Kadant was 46.17%. The lowest was 41.69%. And the median was 43.79%.
KAI's Gross Margin % is ranked better than 85.49% of 2935
companies
in the Industrial Products industry
Industry Median: 26.85
vs KAI: 44.25
Kadant had a gross margin of 43.35% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kadant was 0.80% per year.
Kadant Gross Margin % Historical Data
The historical data trend for Kadant'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 Specialty Industrial Machinery subindustry, Kadant'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.
Kadant's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kadant's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kadant'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.
Kadant (NYSE:KAI) 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
Kadant had a gross margin of 43.35% for the quarter that ended in Dec. 2024 => Durable 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.
Kadant Gross Margin % Related Terms
Thank you for viewing the detailed overview of Kadant's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kadant Inc. supplies process and engineering equipment for papermaking, recycling, lumber manufacturing, and related industries. The company's three reportable segments are the Flow Control segment which consists of the fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment which consists of the wood processing and stock-preparation product lines; and Material handling systems, which provides conveyor-belt equipment for industries such as mining, food processing, and packaging. The company has a geographic presence in the U.S., China, Asia, Germany, Canada, and Others.
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