Algoma Steel Group (TSX:ASTL) Gross Margin % : -1.36% (As of Dec. 2023)

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What is Algoma Steel Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Algoma Steel Group's Gross Profit for the three months ended in Dec. 2023 was C$-8 Mil. Algoma Steel Group's Revenue for the three months ended in Dec. 2023 was C$615 Mil. Therefore, Algoma Steel Group's Gross Margin % for the quarter that ended in Dec. 2023 was -1.36%.

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

TSX:ASTL' s Gross Margin % Range Over the Past 10 Years
Min: -4.09 Med: 11.4 Max: 39.78
Current: 10.3

During the past 4 years, the highest Gross Margin % of Algoma Steel Group was 39.78%. The lowest was -4.09%. And the median was 11.40%.

TSX:ASTL's Gross Margin % is ranked worse than
59.56% of 586 companies
in the Steel industry
Industry Median: 13.005 vs TSX:ASTL: 10.30

Algoma Steel Group had a gross margin of -1.36% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Algoma Steel Group was 0.00% per year.

Algoma Steel Group Gross Margin % Historical Data

The historical data trend for Algoma Steel Group'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.

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Algoma Steel Group Gross Margin % Chart

Algoma Steel Group Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Gross Margin %

-4.09

8.76

39.78

14.03

Algoma Steel Group Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial											-7.75	6.89	22.69	9.25	-1.36

Competitive Comparison of Algoma Steel Group's Gross Margin %

For the Steel subindustry, Algoma Steel Group'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.

Algoma Steel Group's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Algoma Steel Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Algoma Steel Group's Gross Margin % falls into.

Algoma Steel Group Gross Margin % Calculation

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

Algoma Steel Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	389.8	/	2778.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2778.5 - 2388.7)	/	2778.5
	=	14.03 %

Algoma Steel Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	-8.4	/	615.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(615.4 - 623.8)	/	615.4
	=	-1.36 %

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.

Algoma Steel Group (TSX:ASTL) 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

Algoma Steel Group had a gross margin of -1.36% 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.

Algoma Steel Group Gross Margin % Related Terms

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Algoma Steel Group (TSX:ASTL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Algoma Steel Group Inc (TSX:ASTL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ASTL:USA 9ZY:Germany

Address

105 West Street, Sault Ste., Marie, ON, CAN, P6A 7B4

Website

https://www.algoma.com

Algoma Steel Group Inc is a Canadian company engaged in the production of clean and consistent light gauge steel. The company offers a range of hot and cold rolled steel sheet and plate products. The firm operates in a single segment of basic steel production including sheets, plates, slabs, and freights. The Company's revenue is generated from contracts to produce, ship, and deliver steel products Geographically it serves Canada, the United States, and the rest of the world, whilst driving key revenue from domestic sales. The company generates the majority of its revenue from the sale of Steel sheets and strips.