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 highestGross 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 %
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 %
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.
* 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.
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 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.
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