Gross Margin % is calculated as gross profit divided by its revenue. US Energy's Gross Profit for the
three
months ended in Dec. 2023 was $0.57 Mil. US Energy's Revenue for the
three
months ended in Dec. 2023 was $7.32 Mil. Therefore, US Energy's Gross Margin % for the quarter that ended in Dec. 2023 was 7.81%.
Warning Sign:
US Energy Corp gross margin has been in long-term decline. The average rate of decline per year is -20.9%.
The historical rank and industry rank for US Energy's Gross Margin % or its related term are showing as below:
USEG'
s Gross Margin % Range Over the Past 10 Years
Min: -53.11 Med: 27.39 Max: 54.82
Current: 9.79
During the past 13 years, the highestGross Margin % of US Energy was 54.82%. The lowest was -53.11%. And the median was 27.39%.
USEG's Gross Margin % is ranked worse than 78.79% of 924
companies
in the Oil & Gas industry
Industry Median: 27.905
vs USEG: 9.79
US Energy had a gross margin of 7.81% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for US Energy was -20.90% per year.
US Energy Gross Margin % Historical Data
The historical data trend for US Energy'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.
US Energy Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
54.82
9.44
48.06
32.98
9.79
US Energy Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
24.38
9.82
8.36
12.71
7.81
Competitive Comparison
For the Oil & Gas E&P subindustry, US Energy'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.
US Energy Gross Margin % Distribution
For the Oil & Gas industry and Energy sector, US Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where US Energy'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.
US Energy (NAS:USEG) 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
US Energy had a gross margin of 7.81% for the quarter that ended in Dec. 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.
US Energy Gross Margin % Related Terms
Thank you for viewing the detailed overview of US Energy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
US Energy Corp is an independent energy company. It is focused on the acquisition and development of oil and natural gas-producing properties in the continental United States. It has business activities in South Texas and the Williston Basin in North Dakota. The company generates revenue from its interest in the sales of oil and natural gas production.
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