Gross Margin % is calculated as gross profit divided by its revenue. JM Smucker Co's Gross Profit for the
three
months ended in Jan. 2024 was $823 Mil. JM Smucker Co's Revenue for the
three
months ended in Jan. 2024 was $2,229 Mil. Therefore, JM Smucker Co's Gross Margin % for the quarter that ended in Jan. 2024 was 36.92%.
Warning Sign:
JM Smucker Co gross margin has been in long-term decline. The average rate of decline per year is -3%.
The historical rank and industry rank for JM Smucker Co's Gross Margin % or its related term are showing as below:
SJM'
s Gross Margin % Range Over the Past 10 Years
Min: 32.85 Med: 37.6 Max: 39.22
Current: 36.48
During the past 13 years, the highestGross Margin % of JM Smucker Co was 39.22%. The lowest was 32.85%. And the median was 37.60%.
SJM's Gross Margin % is ranked better than 72.53% of 1809
companies
in the Consumer Packaged Goods industry
Industry Median: 25.04
vs SJM: 36.48
JM Smucker Co had a gross margin of 36.92% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for JM Smucker Co was -3.00% per year.
JM Smucker Co Gross Margin % Historical Data
The historical data trend for JM Smucker 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 JM Smucker Co's Gross Margin %
For the Packaged Foods subindustry, JM Smucker 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.
JM Smucker Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, JM Smucker Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where JM Smucker 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.
JM Smucker Co (NYSE:SJM) 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
JM Smucker Co had a gross margin of 36.92% for the quarter that ended in Jan. 2024 => 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.
JM Smucker Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of JM Smucker Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
JM Smucker Co (JM Smucker Co) Business Description
J.M. Smucker is a packaged food company that primarily sells through the U.S. retail channel (77% of forecast fiscal 2024 revenue), with the remaining share consisting of Hostess, foodservice, and international (primarily Canada). Following the divestiture of several pet foods brands and private-label products that constituted about $1.5 billion of sales, retail coffee is now its largest category (33% of sales) with brands Folgers and Dunkin'. Pet foods (22% of sales) holds leading brands like Milk-Bone and Meow Mix. Of its remaining, approximately 22% comes from consumer foods, primarily peanut butter and jelly, through brands Jif and Smucker's. The company acquired Hostess Brands in fiscal 2024 to boost its snack and convenience store presence.
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