Walcom GroupLSE:WALG Gross Margin % is 46.81% as of Jun. 2019, which is 23% below its 10-year median of 60.77. The stock has 6 warning signs investors should review.
Walcom Group Ltd gross margin has been in long term decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for Walcom Group's Gross Margin % or its related term are showing as below:
LSE:WALG'
s Gross Margin % Range Over the Past 10 Years
Min: 53.57 Med: 60.77 Max: 63.54
Current: 53.57
During the past 13 years, the highestGross Margin % of Walcom Group was 63.54%. The lowest was 53.57%. And the median was 60.77%.
LSE:WALG's Gross Margin % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 26.37
vs LSE:WALG: 53.57
Walcom Group had a gross margin of 46.81% for the quarter that ended in Jun. 2019 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Walcom Group was -2.90% per year.
Walcom Group (LSE:WALG) 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
Walcom Group had a gross margin of 46.81% for the quarter that ended in Jun. 2019 => 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.
Walcom Group Gross Margin % Related Terms
Walcom Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Walcom Group'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, Walcom Group'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.
Walcom Group Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Walcom Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Walcom Group'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.
Walcom Group (LSE:WALG) has a Gross Margin % of 46.81% as of Jun. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on Walcom Group and its competitors. This is 23% below median its historical median of 60.77. Over the past decade, Walcom Group's Gross Margin % has ranged from 53.57 to 63.54.
Is Walcom Group's Gross Margin % too high?
Walcom Group's current Gross Margin % of 46.81% is 23% below median its 10-year median of 60.77. Over the past 10 years, this metric has ranged from a low of 53.57 to a high of 63.54. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Walcom Group's value of 46.81% is 77.5% above this industry median.
How does Walcom Group's Gross Margin % compare to competitors?
Walcom Group's Gross Margin % of 46.81% can be compared against companies in the Consumer Packaged Goods industry. The industry median Gross Margin % is 26.37. Walcom Group's value of 46.81% is 77.5% above this benchmark. Historically, Walcom Group's own Gross Margin % has ranged from 53.57 to 63.54 over the past decade. While the company's 10-year median is 60.77 vs. the industry median of 26.37, Walcom Group has consistently been above 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 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. Walcom Group's current Gross Margin % of 46.81% is 77.5% 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 Walcom Group 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. Walcom Group's current Gross Margin % is 46.81%, which is 23% below median its own 10-year median of 60.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walcom Group stock overvalued right now?
Walcom Group (LSE:WALG) has a current Gross Margin % of 46.81%. The current Gross Margin % is 46.81%, which is 23% below median its 10-year median of 60.77 and 77.5% above 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 Walcom Group (LSE:WALG), the current Gross Margin % is 46.81% as of Jun. 2019. 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.
Walcom Group Ltd is an investment holding company engaged in the manufacturing, distribution, and sale of chemical feed and additive products. The company offers products for pigs, poultries, aquatic, cows, and beef cattle and sheeps. Its pig's product includes porcinin plus, and porcimax; poultries include eggronin plus, and avianin plus, and aquatic include aquanin plus. Walcom's operations are located in China, Taiwan, Thailand, Korea and others.
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