GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Showa Paxxs Corp (TSE:3954) » Definitions » Gross Margin %

Showa Paxxs (TSE:3954) Gross Margin % : 18.34% (As of Dec. 2023)


View and export this data going back to 1999. Start your Free Trial

What is Showa Paxxs Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Showa Paxxs's Gross Profit for the three months ended in Dec. 2023 was 円967 Mil. Showa Paxxs's Revenue for the three months ended in Dec. 2023 was 円5,271 Mil. Therefore, Showa Paxxs's Gross Margin % for the quarter that ended in Dec. 2023 was 18.34%.

Warning Sign:

Showa Paxxs Corp gross margin has been in long-term decline. The average rate of decline per year is -2%.


The historical rank and industry rank for Showa Paxxs's Gross Margin % or its related term are showing as below:

TSE:3954' s Gross Margin % Range Over the Past 10 Years
Min: 16.78   Med: 18.38   Max: 19.27
Current: 17.63


During the past 13 years, the highest Gross Margin % of Showa Paxxs was 19.27%. The lowest was 16.78%. And the median was 18.38%.

TSE:3954's Gross Margin % is ranked worse than
68.94% of 367 companies
in the Packaging & Containers industry
Industry Median: 21.6 vs TSE:3954: 17.63

Showa Paxxs had a gross margin of 18.34% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Showa Paxxs was -2.00% per year.


Showa Paxxs Gross Margin % Historical Data

The historical data trend for Showa Paxxs'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.

* Premium members only.

Showa Paxxs Gross Margin % Chart

Showa Paxxs Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.63 18.31 18.44 16.78 17.63

Showa Paxxs Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.29 17.83 15.97 18.34 18.56

Competitive Comparison of Showa Paxxs's Gross Margin %

For the Packaging & Containers subindustry, Showa Paxxs'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.


Showa Paxxs's Gross Margin % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Showa Paxxs's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Showa Paxxs's Gross Margin % falls into.



Showa Paxxs Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Showa Paxxs's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=3817.7 / 21651.665
=(Revenue - Cost of Goods Sold) / Revenue
=(21651.665 - 17833.989) / 21651.665
=17.63 %

Showa Paxxs's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=966.7 / 5270.536
=(Revenue - Cost of Goods Sold) / Revenue
=(5270.536 - 4303.81) / 5270.536
=18.34 %

* 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.


Showa Paxxs  (TSE:3954) 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

Showa Paxxs had a gross margin of 18.34% for the quarter that ended in Dec. 2023 => 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.


Showa Paxxs Gross Margin % Related Terms

Thank you for viewing the detailed overview of Showa Paxxs's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Showa Paxxs (TSE:3954) Business Description

Traded in Other Exchanges
N/A
Address
2-12 Ichigayahonmura-cho, Shinjuku-ku, Tokyo, JPN, 162-0845
Showa Paxxs Corporation is an industrial packaging container manufacturer. It is engaged in manufacturing and selling packaging materials and containers. The products offered by the company include heavy wrapping paper bags, containers, film, and packaging machine equipment systems.

Showa Paxxs (TSE:3954) Headlines

No Headlines