The historical rank and industry rank for Constellation Brands's Gross Margin % or its related term are showing as below:
MIL:1STZ'
s Gross Margin % Range Over the Past 10 Years
Min: 42.78 Med: 50.28 Max: 53.37
Current: 51.28
During the past 13 years, the highestGross Margin % of Constellation Brands was 53.37%. The lowest was 42.78%. And the median was 50.28%.
MIL:1STZ's Gross Margin % is ranked better than 73.43% of 207
companies
in the Beverages - Alcoholic industry
Industry Median: 39.6
vs MIL:1STZ: 51.28
Constellation Brands had a gross margin of 51.79% for the quarter that ended in Aug. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Constellation Brands was 0.20% per year.
Constellation Brands Gross Margin % Historical Data
The historical data trend for Constellation Brands'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 Constellation Brands's Gross Margin %
For the Beverages - Brewers subindustry, Constellation Brands'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.
Constellation Brands's Gross Margin % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Constellation Brands'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.
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
Constellation Brands had a gross margin of 51.79% for the quarter that ended in Aug. 2024 => 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.
Constellation Brands Gross Margin % Related Terms
Thank you for viewing the detailed overview of Constellation Brands's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the us, generating 82% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company continue to prune assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the us, the firm has little revenue exposure to international markets. Constellation owns a 26% stake in no-moat Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.
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