Otg ExpOTG Gross Margin % is 22.24% as of Dec. 2014.
Gross Margin % is calculated as gross profit divided by its revenue. Otg Exp's Gross Profit for the
six
months ended in Dec. 2014 was $60.86 Mil. Otg Exp's Revenue for the
six
months ended in Dec. 2014 was $273.60 Mil. Therefore, Otg Exp's Gross Margin % for the quarter that ended in Dec. 2014 was 22.24%.
The historical rank and industry rank for Otg Exp's Gross Margin % or its related term are showing as below:
OTG's Gross Margin % is not ranked *
in the Restaurants industry.
Industry Median: 45.71 * Ranked among companies with meaningful Gross Margin % only.
Otg Exp had a gross margin of 22.24% for the quarter that ended in Dec. 2014 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Otg Exp was 0.00% per year.
Otg Exp (NAS:OTG) 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
Otg Exp had a gross margin of 22.24% for the quarter that ended in Dec. 2014 => 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.
Otg Exp Gross Margin % Related Terms
Otg Exp Gross Margin % Historical Data
* Premium members only.
The historical data trend for Otg Exp'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.
Otg Exp Gross Margin % Chart
Otg Exp Annual Data
Trend
Dec13
Dec14
Gross Margin %
20.95
22.24
Otg Exp Semi-Annual Data
Dec13
Dec14
Gross Margin %
20.95
22.24
OTG vs IRGTQ, CDIF, STRZ: Gross Margin % Comparison
For the Restaurants subindustry, Otg Exp'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.
Otg Exp Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Otg Exp's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Otg Exp'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.
Otg Exp (OTG) has a Gross Margin % of 22.24% as of Dec. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on Otg Exp and its competitors.
Is Otg Exp's Gross Margin % too high?
Otg Exp's current Gross Margin % is 22.24%. The Restaurants industry median Gross Margin % is 45.71. Otg Exp's value of 22.24% is 51.3% below this industry median.
How does Otg Exp's Gross Margin % compare to IRGTQ and CDIF?
Otg Exp's Gross Margin % of 22.24% can be compared against companies in the Restaurants industry. The industry median Gross Margin % is 45.71. Otg Exp's value of 22.24% is 51.3% 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 Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 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. Otg Exp's current Gross Margin % of 22.24% is 51.3% 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 Otg Exp and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otg Exp's current Gross Margin % is 22.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otg Exp stock overvalued right now?
Otg Exp (OTG) has a current Gross Margin % of 22.24%. The current Gross Margin % is 22.24% and 51.3% below the Restaurants industry median of 45.71. 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 Otg Exp (OTG), the current Gross Margin % is 22.24% as of Dec. 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.
Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.
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