The historical rank and industry rank for Rose Rock Midstream LP's Gross Margin % or its related term are showing as below:
RRMS's Gross Margin % is not ranked *
in the Oil & Gas industry.
Industry Median: 27.82 * Ranked among companies with meaningful Gross Margin % only.
Rose Rock Midstream LP had a gross margin of 12.21% for the quarter that ended in Jun. 2016 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Rose Rock Midstream LP was 0.00% per year.
Rose Rock Midstream LP Gross Margin % Historical Data
The historical data trend for Rose Rock Midstream LP'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 Rose Rock Midstream LP's Gross Margin %
For the Oil & Gas Integrated subindustry, Rose Rock Midstream LP'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.
Rose Rock Midstream LP's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Rose Rock Midstream LP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rose Rock Midstream LP'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.
Rose Rock Midstream LP (NYSE:RRMS) 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
Rose Rock Midstream LP had a gross margin of 12.21% for the quarter that ended in Jun. 2016 => 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.
Rose Rock Midstream LP Gross Margin % Related Terms
Thank you for viewing the detailed overview of Rose Rock Midstream LP's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rose Rock Midstream LP (Rose Rock Midstream LP) Business Description
Rose Rock Midstream LP is a Delaware limited partnership formed in 2011. The Company is engaged in the business of crude oil gathering, transportation, storage, distribution and marketing in Colorado, Kansas, Minnesota, Montana, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. We operate in the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin ("DJ Basin") and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and Mississippi Lime Play in the Mid-Continent region. The Company's operating business segments are Transportation, Facilities, and Supply & Logistics. The Transportation segment operates crude oil pipelines and truck transportation businesses. The Facilities segment operates crude oil storage and terminal businesses. The Supply and Logistics segment operates a crude oil marketing business which utilizes our Transportation and Facilities assets for marketing purposes. Its competitors include Cushing include Blueknight Energy Partners, L.P., Enbridge Energy Partners, L.P., Enterprise Products Partners L.P., Magellan Midstream Partners, L.P. and Plains All American Pipeline, L.P. The Company' operations are subject to extensive regulation.
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