The historical rank and industry rank for TAAT Global Alternatives's Gross Margin % or its related term are showing as below:
TOBAF's Gross Margin % is not ranked *
in the Tobacco Products industry.
Industry Median: 33.29 * Ranked among companies with meaningful Gross Margin % only.
TAAT Global Alternatives had a gross margin of 5.07% for the quarter that ended in Jul. 2024 => No sustainable competitive advantage
TAAT Global Alternatives (OTCPK:TOBAF) 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
TAAT Global Alternatives had a gross margin of 5.07% for the quarter that ended in Jul. 2024 => 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.
TAAT Global Alternatives Gross Margin % Related Terms
TAAT Global Alternatives Gross Margin % Historical Data
* 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.
TOBAF vs VPRB, XXII, CBDW: Gross Margin % Comparison
For the Tobacco subindustry, TAAT Global Alternatives'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.
TAAT Global Alternatives Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, TAAT Global Alternatives's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TAAT Global Alternatives'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.
TAAT Global Alternatives (TOBAF) has a Gross Margin % of 5.07% as of Jul. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on TAAT Global Alternatives and its competitors.
Is TAAT Global Alternatives' Gross Margin % too high?
TAAT Global Alternatives' current Gross Margin % is 5.07%. The Tobacco Products industry median Gross Margin % is 33.29. TAAT Global Alternatives' value of 5.07% is 84.8% below this industry median. Overall, TAAT Global Alternatives has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does TAAT Global Alternatives' Gross Margin % compare to VPRB and XXII?
TAAT Global Alternatives' Gross Margin % of 5.07% can be compared against companies in the Tobacco Products industry. The industry median Gross Margin % is 33.29. TAAT Global Alternatives' value of 5.07% is 84.8% 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 Tobacco Products company?
The median Gross Margin % among Tobacco Products companies is 33.29, based on 47 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. TAAT Global Alternatives's current Gross Margin % of 5.07% is 84.8% 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 TAAT Global Alternatives and its competitors. For the Tobacco Products industry, the median Gross Margin % is 33.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TAAT Global Alternatives's current Gross Margin % is 5.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TAAT Global Alternatives stock overvalued right now?
TAAT Global Alternatives (TOBAF) has a current Gross Margin % of 5.07%. The current Gross Margin % is 5.07% and 84.8% below the Tobacco Products industry median of 33.29. TAAT Global Alternatives' overall GF Score™ is 10/100. 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 TAAT Global Alternatives (TOBAF), the current Gross Margin % is 5.07% as of Jul. 2024. 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.
TAAT Global Alternatives Inc is a Canada-based company, which develops, manufactures, and distributes alternative product categories such as tobacco, hemp, and other emerging CPG segments. The company has two reportable segments, the sale of non-tobacco and tobacco products. It generates the majority of its revenue from the tobacco products segment.
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