The historical rank and industry rank for KLM Royal Dutch Airlines's Gross Margin % or its related term are showing as below:
KLMR's Gross Margin % is not ranked *
in the Transportation industry.
Industry Median: 20.42 * Ranked among companies with meaningful Gross Margin % only.
KLM Royal Dutch Airlines had a gross margin of 8.62% for the quarter that ended in Dec. 2018 => No sustainable competitive advantage
KLM Royal Dutch Airlines (OTCPK:KLMR) 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
KLM Royal Dutch Airlines had a gross margin of 8.62% for the quarter that ended in Dec. 2018 => 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.
KLM Royal Dutch Airlines Gross Margin % Related Terms
KLM Royal Dutch Airlines 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.
For the Airlines subindustry, KLM Royal Dutch Airlines'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.
KLM Royal Dutch Airlines Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, KLM Royal Dutch Airlines's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KLM Royal Dutch Airlines'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.
KLM Royal Dutch Airlines (KLMR) has a Gross Margin % of 8.62% as of Dec. 2018. Gross margin is the ratio of total gross profit to net sales. View historical data on KLM Royal Dutch Airlines and its competitors.
Is KLM Royal Dutch Airlines' Gross Margin % too high?
KLM Royal Dutch Airlines' current Gross Margin % is 8.62%. The Transportation industry median Gross Margin % is 20.42. KLM Royal Dutch Airlines' value of 8.62% is 57.8% below this industry median.
How does KLM Royal Dutch Airlines' Gross Margin % compare to ?
KLM Royal Dutch Airlines' Gross Margin % of 8.62% can be compared against companies in the Transportation industry. The industry median Gross Margin % is 20.42. KLM Royal Dutch Airlines' value of 8.62% is 57.8% below this benchmark. 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. KLM Royal Dutch Airlines's current Gross Margin % of 8.62% is 57.8% below 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 KLM Royal Dutch Airlines 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. KLM Royal Dutch Airlines's current Gross Margin % is 8.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLM Royal Dutch Airlines stock overvalued right now?
KLM Royal Dutch Airlines (KLMR) has a current Gross Margin % of 8.62%. The current Gross Margin % is 8.62% and 57.8% below 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 KLM Royal Dutch Airlines (KLMR), the current Gross Margin % is 8.62% as of Dec. 2018. 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.
KLM Royal Dutch Airlines is engaged in network activities, which include air transport of passengers and cargo activities, aircraft maintenance, leisure, and other activities linked to air transport. Its segments are: Network, which generates maximum revenue and includes transportation of passengers on scheduled flights, ancillary passenger revenues, SkyTeam alliance partnership arrangements, block-seat sales, transportation of freight, and sale of cargo capacity to third parties; Maintenance, which provides engine services, component services, and airframe maintenance to airlines and clients internationally; Leisure, which covers charter flights and low-cost scheduled flights operated by transavia.com; and Other segment. It generates maximum revenue from Europe and North Africa.
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