Meiji Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.4%.
The historical rank and industry rank for Meiji Holdings Co's Gross Margin % or its related term are showing as below:
MEJHY'
s Gross Margin % Range Over the Past 10 Years
Min: 28.88 Med: 36.41 Max: 37.73
Current: 29.4
During the past 13 years, the highestGross Margin % of Meiji Holdings Co was 37.73%. The lowest was 28.88%. And the median was 36.41%.
MEJHY's Gross Margin % is ranked better than 57.62% of 1843
companies
in the Consumer Packaged Goods industry
Industry Median: 25.81
vs MEJHY: 29.40
Meiji Holdings Co had a gross margin of 28.21% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Meiji Holdings Co was -5.40% per year.
Meiji Holdings Co Gross Margin % Historical Data
The historical data trend for Meiji Holdings Co'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.
Competitive Comparison of Meiji Holdings Co's Gross Margin %
For the Packaged Foods subindustry, Meiji Holdings Co'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.
Meiji Holdings Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Meiji Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Meiji Holdings Co'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.
Meiji Holdings Co (OTCPK:MEJHY) 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
Meiji Holdings Co had a gross margin of 28.21% for the quarter that ended in Dec. 2024 => 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.
Meiji Holdings Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Meiji Holdings Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Meiji Holdings was established in April 2009 as a merged entity of Meiji Dairies, Japan's largest dairy company, and Meiji Seika, the country's number-two confectionery maker. The amalgamation was propelled by a surge in commodity prices, Japan's aging and shrinking population, and fierce competition. The food business, comprising dairy and confectionery operations, represents more than 80% of the group's sales and 70% of profits. The rest mainly comes from the pharmaceutical business, specializing in antibacterial and generic drugs, as well as vaccines. Overseas food operations, mainly in China, the US, and Southeast Asia, comprise merely 6.5% of the group sales are in red due to a surge in investment in China's new factories and fierce price competition initiated by Chinese dairy makers.
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