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Sanderson Farms Gross Margin %

: 31.69% (As of Apr. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Sanderson Farms's Gross Profit for the three months ended in Apr. 2022 was $488 Mil. Sanderson Farms's Revenue for the three months ended in Apr. 2022 was $1,540 Mil. Therefore, Sanderson Farms's Gross Margin % for the quarter that ended in Apr. 2022 was 31.69%.

Warning Sign:

Sanderson Farms Inc gross margin has been in long-term decline. The average rate of decline per year is -8.2%.


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

SAFM' s Gross Margin % Range Over the Past 10 Years
Min: 5.45   Med: 13.76   Max: 25.61
Current: 25.61


During the past 13 years, the highest Gross Margin % of Sanderson Farms was 25.61%. The lowest was 5.45%. And the median was 13.76%.

SAFM's Gross Margin % is ranked worse than
50.17% of 1738 companies
in the Consumer Packaged Goods industry
Industry Median: 25.69 vs SAFM: 25.61

Sanderson Farms had a gross margin of 31.69% for the quarter that ended in Apr. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Sanderson Farms was -8.20% per year.


Sanderson Farms Gross Margin % Historical Data

The historical data trend for Sanderson Farms'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.

Sanderson Farms Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.20 7.78 8.11 5.45 18.64

Sanderson Farms Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 16.93 22.39 23.49 24.06 31.69

Competitive Comparison

For the Packaged Foods subindustry, Sanderson Farms'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.

   

Sanderson Farms Gross Margin % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Sanderson Farms's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sanderson Farms's Gross Margin % falls into.



Sanderson Farms Gross Margin % Calculation

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

Sanderson Farms's Gross Margin for the fiscal year that ended in Oct. 2021 is calculated as

Gross Margin % (A: Oct. 2021 )=Gross Profit (A: Oct. 2021 ) / Revenue (A: Oct. 2021 )
=894.7 / 4799.653
=(Revenue - Cost of Goods Sold) / Revenue
=(4799.653 - 3904.995) / 4799.653
=18.64 %

Sanderson Farms's Gross Margin for the quarter that ended in Apr. 2022 is calculated as


Gross Margin % (Q: Apr. 2022 )=Gross Profit (Q: Apr. 2022 ) / Revenue (Q: Apr. 2022 )
=487.9 / 1539.714
=(Revenue - Cost of Goods Sold) / Revenue
=(1539.714 - 1051.845) / 1539.714
=31.69 %

* 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.


Sanderson Farms  (NAS:SAFM) 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

Sanderson Farms had a gross margin of 31.69% for the quarter that ended in Apr. 2022 => 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.


Sanderson Farms Gross Margin % Related Terms

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


Sanderson Farms Business Description

Sanderson Farms logo
Traded in Other Exchanges
Address
127 Flynt Road, Laurel, MS, USA, 39443
Sanderson Farms Inc is a dressed-chicken processor in the United States, producing and selling a variety of fresh, frozen, and value-added chicken products to grocers, food-service operators, and distributors. Most revenue is generated in the Southeastern, Southwestern, Northeastern, and Western United States. The company's product portfolio consists of tray packs and large birds, catering to grocery and food-service customers. It sells chill-packed, ice-packed, bulk-packed, and frozen chicken in whole, cut-up, and boneless form under the brand name Sanderson Farms to retailers, distributors, and casual dining operators in the United States.
Executives
Perez Sonia director 127 FLYNT ROAD LAUREL MS 39443
Kelly Green Edith director 3131 DEMOCRAT ROAD BLDG B206 MEMPHIS TN 38118
Barksdale John David director 127 FLYNT ROAD LAUREL MS 39443
Mestayer Suzanne T director 1100 POYDRAS STREET NEW ORLEANS LA 70163
Rigney Tim officer: Controller/Secretary 127 FLYNT ROAD, P.O. BOX 988 LAUREL MS 39441
Mooney Dianne director 7449 ASHLAND LANE BIRMINGHAM AL 35242
Khayat Robert C director PO BOX 1848 UNIVERSITY MS 38677
Banks Fred L Jr director 111 EAST CAPITOL STREET SUITE 600 JACKSON MS 39201-2122
Cooley Toni D director 253 OLD JACKSON ROAD MADISON MS 39110
Bierbusse John director 3500 NORTH LAKE SHORE DRIVE #14A CHICAGO IL 60657
Zacharias Donald W director
Taylor Rowan director
Ritter Charles W Jr director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998
Pittman Jones Gail director C/O SANDERSON FARMS INC PO BOX 988 225 N 13TH AVE LAUREL MS 39441-0988
Livingston Phil K director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998

Sanderson Farms Headlines

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