Kellan Group (The)LSE:KLN Gross Margin % is 29.34% as of Jun. 2018, which is 17% below its 10-year median of 35.18. The stock has 3 warning signs investors should review.
Kellan Group (The) PLC gross margin has been in long term decline. The average rate of decline per year is -3.2%.
The historical rank and industry rank for Kellan Group (The)'s Gross Margin % or its related term are showing as below:
LSE:KLN'
s Gross Margin % Range Over the Past 10 Years
Min: 30.11 Med: 35.18 Max: 48.83
Current: 30.11
During the past 13 years, the highestGross Margin % of Kellan Group (The) was 48.83%. The lowest was 30.11%. And the median was 35.18%.
LSE:KLN's Gross Margin % is not ranked
in the Business Services industry.
Industry Median: 34.48
vs LSE:KLN: 30.11
Kellan Group (The) had a gross margin of 29.34% for the quarter that ended in Jun. 2018 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Kellan Group (The) was -3.20% per year.
Kellan Group (The) (LSE:KLN) 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
Kellan Group (The) had a gross margin of 29.34% for the quarter that ended in Jun. 2018 => 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.
Kellan Group (The) Gross Margin % Related Terms
Kellan Group (The) Gross Margin % Historical Data
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The historical data trend for Kellan Group (The)'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 Staffing & Employment Services subindustry, Kellan Group (The)'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.
Kellan Group (The) Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Kellan Group (The)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kellan Group (The)'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.
Kellan Group (The) (LSE:KLN) has a Gross Margin % of 29.34% as of Jun. 2018. Gross margin is the ratio of total gross profit to net sales. View historical data on Kellan Group (The) and its competitors. This is 17% below median its historical median of 35.18. Over the past decade, Kellan Group (The)'s Gross Margin % has ranged from 30.11 to 48.83.
Is Kellan Group (The)'s Gross Margin % too high?
Kellan Group (The)'s current Gross Margin % of 29.34% is 17% below median its 10-year median of 35.18. Over the past 10 years, this metric has ranged from a low of 30.11 to a high of 48.83. The Business Services industry median Gross Margin % is 34.48. Kellan Group (The)'s value of 29.34% is 14.9% below this industry median.
How does Kellan Group (The)'s Gross Margin % compare to TTNC and STAF?
Kellan Group (The)'s Gross Margin % of 29.34% can be compared against companies in the Business Services industry. The industry median Gross Margin % is 34.48. Kellan Group (The)'s value of 29.34% is 14.9% below this benchmark. Historically, Kellan Group (The)'s own Gross Margin % has ranged from 30.11 to 48.83 over the past decade. While the company's 10-year median is 35.18 vs. the industry median of 34.48, Kellan Group (The) has consistently been below the industry average. 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.48, based on 1,004 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. Kellan Group (The)'s current Gross Margin % of 29.34% is 14.9% 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 Kellan Group (The) and its competitors. For the Business Services industry, the median Gross Margin % is 34.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kellan Group (The)'s current Gross Margin % is 29.34%, which is 17% below median its own 10-year median of 35.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kellan Group (The) stock overvalued right now?
Kellan Group (The) (LSE:KLN) has a current Gross Margin % of 29.34%. The current Gross Margin % is 29.34%, which is 17% below median its 10-year median of 35.18 and 14.9% below the Business Services industry median of 34.48. 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 Kellan Group (The) (LSE:KLN), the current Gross Margin % is 29.34% as of Jun. 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.
Kellan Group (The) PLC is a UK based company engaged in recruitment business. The company operates across a wide range of functional disciplines and industry sectors. Business activity of the group is mentioned through Quantica Group, Berkeley Scott, RK Group and other segments. It offers permanent, contract, temporary and retained search recruitment services focusing the core markets being Hospitality and Leisure; Technology; and Accounting and Finance. Kellan derives the majority of revenue from consultancy and other ancillary services.
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