Gross Margin % is calculated as gross profit divided by its revenue. REI Agro's Gross Profit for the
three
months ended in Mar. 2014 was $30 Mil. REI Agro's Revenue for the
three
months ended in Mar. 2014 was $174 Mil. Therefore, REI Agro's Gross Margin % for the quarter that ended in Mar. 2014 was 17.33%.
The historical rank and industry rank for REI Agro's Gross Margin % or its related term are showing as below:
LSE:REA's Gross Margin % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 26.37 * Ranked among companies with meaningful Gross Margin % only.
REI Agro had a gross margin of 17.33% for the quarter that ended in Mar. 2014 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for REI Agro was 0.00% per year.
REI Agro (LSE:REA) 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
REI Agro had a gross margin of 17.33% for the quarter that ended in Mar. 2014 => 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.
REI Agro Gross Margin % Related Terms
REI Agro Gross Margin % Historical Data
* Premium members only.
The historical data trend for REI Agro'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 Packaged Foods subindustry, REI Agro'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.
REI Agro Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, REI Agro's Gross Margin % distribution charts can be found below:
* The bar in red indicates where REI Agro'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.
REI Agro (LSE:REA) has a Gross Margin % of 17.33% as of Mar. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on REI Agro and its competitors.
Is REI Agro's Gross Margin % too high?
REI Agro's current Gross Margin % is 17.33%. The Consumer Packaged Goods industry median Gross Margin % is 26.37. REI Agro's value of 17.33% is 34.3% below this industry median.
How does REI Agro's Gross Margin % compare to competitors?
REI Agro's Gross Margin % of 17.33% can be compared against companies in the Consumer Packaged Goods industry. The industry median Gross Margin % is 26.37. REI Agro's value of 17.33% is 34.3% 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,899 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. REI Agro's current Gross Margin % of 17.33% is 34.3% 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 REI Agro and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REI Agro's current Gross Margin % is 17.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REI Agro stock overvalued right now?
REI Agro (LSE:REA) has a current Gross Margin % of 17.33%. The current Gross Margin % is 17.33% and 34.3% below the Consumer Packaged Goods industry median of 26.37. 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 REI Agro (LSE:REA), the current Gross Margin % is 17.33% as of Mar. 2014. 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.
REI Agro Ltd is engaged in processing basmati rice and market its products under the brand name Raindrops. The company operates in two business segments - the business of processing, trading, and marketing of agro products and generation of power through Wind farm generators. The products of the company are sold both in domestic and international markets.
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