ZEK (Zekelman Industries) Gross Margin %: 27.04% (As of Jun. 2018)


What is Zekelman Industries Gross Margin %?

Zekelman Industries ZEK Gross Margin % is 27.04% as of Jun. 2018.

Gross Margin % is calculated as gross profit divided by its revenue. Zekelman Industries's Gross Profit for the three months ended in Jun. 2018 was $211.78 Mil. Zekelman Industries's Revenue for the three months ended in Jun. 2018 was $783.13 Mil. Therefore, Zekelman Industries's Gross Margin % for the quarter that ended in Jun. 2018 was 27.04%.


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


ZEK's Gross Margin % is not ranked *
in the Steel industry.
Industry Median: 12.61
* Ranked among companies with meaningful Gross Margin % only.

Zekelman Industries had a gross margin of 27.04% for the quarter that ended in Jun. 2018 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Zekelman Industries was 0.00% per year.

Zekelman Industries  (NYSE:ZEK) 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

Zekelman Industries had a gross margin of 27.04% for the quarter that ended in Jun. 2018 => 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.

Zekelman Industries Gross Margin % Related Terms

Zekelman Industries Gross Margin % Historical Data

* Premium members only.

The historical data trend for Zekelman Industries'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.

Zekelman Industries Gross Margin % Chart

Zekelman Industries Annual Data
Trend Sep15 Sep16 Sep17
Gross Margin %
14.35 22.79 20.88

Zekelman Industries Quarterly Data
Sep15 Sep16 Jun17 Sep17 Jun18
Gross Margin % 0.00 0.00 20.88 18.41 27.04

ZEK vs : Gross Margin % Comparison

For the Steel subindustry, Zekelman Industries'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.

Zekelman Industries Gross Margin % vs Steel Industry

For the Steel industry and Basic Materials sector, Zekelman Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zekelman Industries's Gross Margin % falls into.


Zekelman Industries Gross Margin % Calculation

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

Zekelman Industries's Gross Margin for the fiscal year that ended in Sep. 2017 is calculated as

Gross Margin % (A: Sep. 2017 )=Gross Profit (A: Sep. 2017 ) / Revenue (A: Sep. 2017 )
=437.6 / 2095.255
=(Revenue - Cost of Goods Sold) / Revenue
=(2095.255 - 1657.7) / 2095.255
=20.88 %

Zekelman Industries's Gross Margin for the quarter that ended in Jun. 2018 is calculated as


Gross Margin % (Q: Jun. 2018 )=Gross Profit (Q: Jun. 2018 ) / Revenue (Q: Jun. 2018 )
=211.8 / 783.134
=(Revenue - Cost of Goods Sold) / Revenue
=(783.134 - 571.359) / 783.134
=27.04 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 27.04% mean?
Zekelman Industries (ZEK) has a Gross Margin % of 27.04% as of Jun. 2018. Gross margin is the ratio of total gross profit to net sales. View historical data on Zekelman Industries and its competitors.
Is Zekelman Industries' Gross Margin % too high?
Zekelman Industries' current Gross Margin % is 27.04%. The Steel industry median Gross Margin % is 12.61. Zekelman Industries' value of 27.04% is 114.4% above this industry median.
How does Zekelman Industries' Gross Margin % compare to ?
Zekelman Industries' Gross Margin % of 27.04% can be compared against companies in the Steel industry. The industry median Gross Margin % is 12.61. Zekelman Industries' value of 27.04% is 114.4% above 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 Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 594 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. Zekelman Industries's current Gross Margin % of 27.04% is 114.4% above 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 Zekelman Industries and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zekelman Industries's current Gross Margin % is 27.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zekelman Industries stock overvalued right now?
Zekelman Industries (ZEK) has a current Gross Margin % of 27.04%. The current Gross Margin % is 27.04% and 114.4% above the Steel industry median of 12.61. 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 Zekelman Industries (ZEK), the current Gross Margin % is 27.04% as of Jun. 2018. 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.

Zekelman Industries Business Description

Comparable Companies
Address 227 West Monroe Street, Suite 2600, Chicago, IL, USA, 60606