The historical rank and industry rank for SMG Industries's Gross Margin % or its related term are showing as below:
SMGI'
s Gross Margin % Range Over the Past 10 Years
Min: -90.18 Med: 21.93 Max: 41.42
Current: 10.41
During the past 13 years, the highestGross Margin % of SMG Industries was 41.42%. The lowest was -90.18%. And the median was 21.93%.
SMGI's Gross Margin % is ranked worse than 76.97% of 925
companies
in the Oil & Gas industry
Industry Median: 27.82
vs SMGI: 10.41
SMG Industries had a gross margin of 6.86% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SMG Industries was 0.00% per year.
SMG Industries Gross Margin % Historical Data
The historical data trend for SMG Industries'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 SMG Industries's Gross Margin %
For the Oil & Gas Equipment & Services subindustry, SMG Industries'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.
SMG Industries's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, SMG Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SMG Industries'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.
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
SMG Industries had a gross margin of 6.86% for the quarter that ended in Sep. 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.
SMG Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of SMG Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SMG Industries (SMG Industries) Business Description
SMG Industries Inc is an oilfield service company that is a growth-oriented midstream, logistics, and oilfield services company that operates throughout the domestic Southwest United States. It offers an expanding suite of products and services across the oilfield market segments of drilling, completion, and production.
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