Gross Margin % is calculated as gross profit divided by its revenue. New Hope's Gross Profit for the
six
months ended in Jan. 2024 was $291 Mil. New Hope's Revenue for the
six
months ended in Jan. 2024 was $568 Mil. Therefore, New Hope's Gross Margin % for the quarter that ended in Jan. 2024 was 51.15%.
The historical rank and industry rank for New Hope's Gross Margin % or its related term are showing as below:
NHPEF'
s Gross Margin % Range Over the Past 10 Years
Min: 29.05 Med: 43.6 Max: 68.4
Current: 57.41
During the past 13 years, the highestGross Margin % of New Hope was 68.40%. The lowest was 29.05%. And the median was 43.60%.
NHPEF's Gross Margin % is ranked better than 89.43% of 123
companies
in the Other Energy Sources industry
Industry Median: 28.85
vs NHPEF: 57.41
New Hope had a gross margin of 51.15% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for New Hope was 8.10% per year.
New Hope Gross Margin % Historical Data
The historical data trend for New Hope'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 New Hope's Gross Margin %
For the Thermal Coal subindustry, New Hope'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.
New Hope's Gross Margin % Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, New Hope's Gross Margin % distribution charts can be found below:
* The bar in red indicates where New Hope'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.
New Hope (OTCPK:NHPEF) 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
New Hope had a gross margin of 51.15% for the quarter that ended in Jan. 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.
New Hope Gross Margin % Related Terms
Thank you for viewing the detailed overview of New Hope's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
New Hope Corporation is an Australian thermal coal miner. It has two operating mines: the 100%-owned New Acland coal mine in Queensland and its 80%-owned Bengalla coal mine in New South Wales. The company should produce around 13 million metric tons of equity salable thermal coal annually from fiscal 2027, up from around 8 million in fiscal 2023, driven by the construction and ramp up of New Acland Stage 3. The vast majority of New Hope's production is sold into seaborne thermal coal export markets. Reserves at New Acland and Bengalla are sufficient to support multidecade mine lives. New Hope also has significant undeveloped coal resources in Queensland, as well as a 15% holding in the Malabar-Maxwell metallurgical coal mine, which began production in 2023.
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