The historical rank and industry rank for Plum Creek Timber Co's Gross Margin % or its related term are showing as below:
PCL's Gross Margin % is not ranked *
in the Forest Products industry.
Industry Median: 19.84 * Ranked among companies with meaningful Gross Margin % only.
Plum Creek Timber Co had a gross margin of 28.79% for the quarter that ended in Dec. 2015 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Plum Creek Timber Co was 0.00% per year.
Plum Creek Timber Co Gross Margin % Historical Data
The historical data trend for Plum Creek Timber Co'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 Plum Creek Timber Co's Gross Margin %
For the Lumber & Wood Production subindustry, Plum Creek Timber Co'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.
Plum Creek Timber Co's Gross Margin % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Plum Creek Timber Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Plum Creek Timber Co'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.
Plum Creek Timber Co (NYSE:PCL) 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
Plum Creek Timber Co had a gross margin of 28.79% for the quarter that ended in Dec. 2015 => 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.
Plum Creek Timber Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Plum Creek Timber Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Plum Creek Timber Co (Plum Creek Timber Co) Business Description
Plum Creek Timber Co Inc was incorporated in Delaware. It is a real estate investment trust. The Company owned approximately 6.6 million acres of timberlands located in 19 states. It manages its timberlands in two business segments: the Northern Resources Segment, consisting of timberlands in Maine, Michigan, Montana, New Hampshire, Oregon, Vermont, Washington, West Virginia and Wisconsin; and the Southern Resources Segment, consisting of timberlands in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia. In addition, its Energy and Natural Resources Segment includes its natural resource businesses that focus on opportunities for oil and natural gas production, construction aggregates and mineral extraction, wind power and communication and transportation rights of way. The Company's real estate segment includes development of certain properties, internally and through joint venture arrangements. The Company's manufacturing segment, also conducted through its wholly-owned taxable REIT subsidiaries, includes two lumber mills, two plywood mills and two medium density fiberboard ("MDF") production lines in Montana and one lumber remanufacturing facility in Idaho. Some of its real estate activities, including its real estate development business, are conducted through its wholly-owned taxable REIT subsidiaries. As of December 31, 2014, the Northern Resources Segment encompassed approximately 3.1 million acres of timberlands and the Southern Resources Segment consisted of approximately 3.6 million acres of timberlands. In its Real Estate Segment, the Company competes with numerous sellers of entitled and unentitled land in hundreds of local markets. The Company's operations are subject to federal, state and local environmental laws and regulations, including laws relating to water, air, solid waste and hazardous substances and the requirements of the Federal Occupational Safety and Health Act and comparable state statutes relating to the health and safety of its employees.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PCL has been successfully added to your 