LIM:BACKUBC1's Gross Margin % is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 42.29 * Ranked among companies with meaningful Gross Margin % only.
Union de Cervecerias Peruanas Backus & Johnston had a gross margin of 74.15% for the quarter that ended in Dec. 2018 => Durable competitive advantage
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUBC1) 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
Union de Cervecerias Peruanas Backus & Johnston had a gross margin of 74.15% for the quarter that ended in Dec. 2018 => 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.
Union de Cervecerias Peruanas Backus & Johnston Gross Margin % Related Terms
Union de Cervecerias Peruanas Backus & Johnston 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.
Union de Cervecerias Peruanas Backus & Johnston Gross Margin % Chart
Union de Cervecerias Peruanas Backus & Johnston Annual Data
Union de Cervecerias Peruanas Backus & Johnston Gross Margin % Competitor Comparison
For the Beverages - Brewers subindustry, Union de Cervecerias Peruanas Backus & Johnston'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.
Union de Cervecerias Peruanas Backus & Johnston Gross Margin % vs Beverages - Alcoholic Industry
* 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.
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUBC1) has a Gross Margin % of 74.15% as of Dec. 2018. Gross margin is the ratio of total gross profit to net sales. View historical data on Union de Cervecerias Peruanas Backus & Johnston and its competitors.
Is Union de Cervecerias Peruanas Backus & Johnston's Gross Margin % too high?
Union de Cervecerias Peruanas Backus & Johnston's current Gross Margin % is 74.15%. The Beverages - Alcoholic industry median Gross Margin % is 42.29. Union de Cervecerias Peruanas Backus & Johnston's value of 74.15% is 75.3% above this industry median. Overall, Union de Cervecerias Peruanas Backus & Johnston has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Union de Cervecerias Peruanas Backus & Johnston's Gross Margin % compare to competitors?
Union de Cervecerias Peruanas Backus & Johnston's Gross Margin % of 74.15% can be compared against companies in the Beverages - Alcoholic industry. The industry median Gross Margin % is 42.29. Union de Cervecerias Peruanas Backus & Johnston's value of 74.15% is 75.3% above 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 Beverages - Alcoholic company?
The median Gross Margin % among Beverages - Alcoholic companies is 42.29, based on 205 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. Union de Cervecerias Peruanas Backus & Johnston's current Gross Margin % of 74.15% is 75.3% 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 Union de Cervecerias Peruanas Backus & Johnston and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union de Cervecerias Peruanas Backus & Johnston's current Gross Margin % is 74.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union de Cervecerias Peruanas Backus & Johnston stock overvalued right now?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUBC1) has a current Gross Margin % of 74.15%. The current Gross Margin % is 74.15% and 75.3% above the Beverages - Alcoholic industry median of 42.29. Union de Cervecerias Peruanas Backus & Johnston's overall GF Score™ is 23/100. 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 Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUBC1), the current Gross Margin % is 74.15% 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.
Union de Cervecerias Peruanas Backus & Johnston Business Description
Union de Cervecerias Peruanas Backus & Johnston SA is engaged in the business of production, packaging, sale, distribution, and all other types of business related to malted and malt beverages, non-alcoholic beverages, and carbonated waters. The company's main business also includes investment in securities of domestic and foreign companies; the exploitation of rural properties; the sale, processing, conservation, marketing, and export of agricultural products; and the provision of advisory services related to these products.
23GF Score
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