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EAM Solar ASA (OSL:EAM) Gross Margin % : 57.30% (As of Dec. 2023)


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What is EAM Solar ASA Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. EAM Solar ASA's Gross Profit for the three months ended in Dec. 2023 was kr1.36 Mil. EAM Solar ASA's Revenue for the three months ended in Dec. 2023 was kr2.37 Mil. Therefore, EAM Solar ASA's Gross Margin % for the quarter that ended in Dec. 2023 was 57.30%.

Warning Sign:

EAM Solar ASA gross margin has been in long-term decline. The average rate of decline per year is -9.3%.


The historical rank and industry rank for EAM Solar ASA's Gross Margin % or its related term are showing as below:

OSL:EAM' s Gross Margin % Range Over the Past 10 Years
Min: 33.34   Med: 82   Max: 87.08
Current: 75.95


During the past 13 years, the highest Gross Margin % of EAM Solar ASA was 87.08%. The lowest was 33.34%. And the median was 82.00%.

OSL:EAM's Gross Margin % is ranked better than
84.38% of 397 companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.34 vs OSL:EAM: 75.95

EAM Solar ASA had a gross margin of 57.30% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for EAM Solar ASA was -9.30% per year.


EAM Solar ASA Gross Margin % Historical Data

The historical data trend for EAM Solar ASA'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.

EAM Solar ASA Gross Margin % Chart

EAM Solar ASA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 87.08 83.24 82.24 33.34 76.03

EAM Solar ASA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -184.98 74.63 80.81 84.70 57.30

Competitive Comparison of EAM Solar ASA's Gross Margin %

For the Utilities - Renewable subindustry, EAM Solar ASA'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.


EAM Solar ASA's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, EAM Solar ASA's Gross Margin % distribution charts can be found below:

* The bar in red indicates where EAM Solar ASA's Gross Margin % falls into.



EAM Solar ASA Gross Margin % Calculation

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

EAM Solar ASA's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=8.7 / 11.424
=(Revenue - Cost of Goods Sold) / Revenue
=(11.424 - 2.738) / 11.424
=76.03 %

EAM Solar ASA'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 )
=1.4 / 2.37
=(Revenue - Cost of Goods Sold) / Revenue
=(2.37 - 1.012) / 2.37
=57.30 %

* 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.


EAM Solar ASA  (OSL:EAM) 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

EAM Solar ASA had a gross margin of 57.30% for the quarter that ended in Dec. 2023 => 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.


EAM Solar ASA Gross Margin % Related Terms

Thank you for viewing the detailed overview of EAM Solar ASA's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


EAM Solar ASA (OSL:EAM) Business Description

Traded in Other Exchanges
Address
Bryggetorget 7, Oslo, NOR, 0250
EAM Solar ASA is an Investment company that acquires and operates solar power plants for long-term ownership. The company is mainly active in Italy and operates four solar power plants which generate electricity. The solar power plants operated by the company are Lorusso, Brundesini, Scardino, and ENFO 25.

EAM Solar ASA (OSL:EAM) Headlines

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