Gross Margin % is calculated as gross profit divided by its revenue. Koppers Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $97 Mil. Koppers Holdings's Revenue for the
three
months ended in Dec. 2023 was $513 Mil. Therefore, Koppers Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 18.80%.
Warning Sign:
Koppers Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Koppers Holdings's Gross Margin % or its related term are showing as below:
KOP'
s Gross Margin % Range Over the Past 10 Years
Min: 13.59 Med: 19.81 Max: 21.83
Current: 19.71
During the past 13 years, the highestGross Margin % of Koppers Holdings was 21.83%. The lowest was 13.59%. And the median was 19.81%.
KOP's Gross Margin % is ranked worse than 56.95% of 1510
companies
in the Chemicals industry
Industry Median: 22.32
vs KOP: 19.71
Koppers Holdings had a gross margin of 18.80% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Koppers Holdings was -1.20% per year.
Koppers Holdings Gross Margin % Historical Data
The historical data trend for Koppers Holdings'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.
Competitive Comparison of Koppers Holdings's Gross Margin %
For the Specialty Chemicals subindustry, Koppers Holdings'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.
Koppers Holdings's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Koppers Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Koppers Holdings'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
Koppers Holdings had a gross margin of 18.80% 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.
Koppers Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Koppers Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Koppers Holdings (Koppers Holdings) Business Description
Koppers Holdings, through its subsidiaries, manufactures and sells wood products, wood treatment chemicals, and carbon compounds used in markets such as railroad, aluminum and steel, agriculture, utilities, and residential lumber. The company is organized into three business segments: railroad and utility products and services, performance chemicals, and carbon materials and chemicals. Its product portfolio includes treated and untreated wood products like crossties used in railroads, wood preservation chemicals, and carbon compounds such as creosote used in the treatment of wood crossties, among others. Most revenue comes from the company's railroad and utility products and services segment, and more than half of the company's revenue is earned in the United States.
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