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Postmedia Network Canada (TSX:PNC.B) Gross Margin % : 86.49% (As of Feb. 2024)


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What is Postmedia Network Canada Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Postmedia Network Canada's Gross Profit for the three months ended in Feb. 2024 was C$84.2 Mil. Postmedia Network Canada's Revenue for the three months ended in Feb. 2024 was C$97.3 Mil. Therefore, Postmedia Network Canada's Gross Margin % for the quarter that ended in Feb. 2024 was 86.49%.


The historical rank and industry rank for Postmedia Network Canada's Gross Margin % or its related term are showing as below:

TSX:PNC.B' s Gross Margin % Range Over the Past 10 Years
Min: 80.94   Med: 83.25   Max: 89.85
Current: 85.2


During the past 13 years, the highest Gross Margin % of Postmedia Network Canada was 89.85%. The lowest was 80.94%. And the median was 83.25%.

TSX:PNC.B's Gross Margin % is ranked better than
90.65% of 963 companies
in the Media - Diversified industry
Industry Median: 38.52 vs TSX:PNC.B: 85.20

Postmedia Network Canada had a gross margin of 86.49% for the quarter that ended in Feb. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Postmedia Network Canada was 0.20% per year.


Postmedia Network Canada Gross Margin % Historical Data

The historical data trend for Postmedia Network Canada'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.

Postmedia Network Canada Gross Margin % Chart

Postmedia Network Canada Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 81.52 82.94 82.37 80.94 83.55

Postmedia Network Canada Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 83.47 83.93 84.40 86.12 86.49

Competitive Comparison of Postmedia Network Canada's Gross Margin %

For the Publishing subindustry, Postmedia Network Canada'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.


Postmedia Network Canada's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Postmedia Network Canada's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Postmedia Network Canada's Gross Margin % falls into.



Postmedia Network Canada Gross Margin % Calculation

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

Postmedia Network Canada's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )=Gross Profit (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=374.7 / 448.499
=(Revenue - Cost of Goods Sold) / Revenue
=(448.499 - 73.771) / 448.499
=83.55 %

Postmedia Network Canada's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=84.2 / 97.338
=(Revenue - Cost of Goods Sold) / Revenue
=(97.338 - 13.152) / 97.338
=86.49 %

* 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.


Postmedia Network Canada  (TSX:PNC.B) 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

Postmedia Network Canada had a gross margin of 86.49% for the quarter that ended in Feb. 2024 => Durable 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.


Postmedia Network Canada Gross Margin % Related Terms

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Postmedia Network Canada (TSX:PNC.B) Business Description

Traded in Other Exchanges
Address
365 Bloor Street East, Legal Department, 12th Floor, Toronto, ON, CAN, M4W 3L4
Postmedia Network Canada Corp is a holding company. It operates through the Newsmedia segment. The company's business consists of news and information gathering and dissemination operations, with products offered in local, regional and metropolitan markets in Canada through multiple print, online and mobile platforms. Postmedia's operations include an extensive distribution network, which also offers distribution services, for advertising flyers and parcels. The combination of these distribution platforms provides audiences with a variety of media through which to access and interact with Postmedia's content. The breadth of the company's reach and the diversity of its content enable advertisers to reach target audiences on a local, regional or national scale.

Postmedia Network Canada (TSX:PNC.B) Headlines

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