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
Continental Coal had a gross margin of -1.00% for the quarter that ended in Jun. 2014 => 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.
Continental Coal Gross Margin % Related Terms
Continental Coal Gross Margin % Historical Data
* Premium members only.
The historical data trend for Continental Coal'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.
For the Coking Coal subindustry, Continental Coal'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.
Continental Coal Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Continental Coal's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Continental Coal'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.
Continental Coal (ASX:CCC) has a Gross Margin % of -1.00% as of Jun. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on Continental Coal and its competitors. Over the past decade, Continental Coal's Gross Margin % has ranged from 3.36 to 13.59.
Is Continental Coal's Gross Margin % too high?
Continental Coal's current Gross Margin % is -1.00%. Over the past 10 years, this metric has ranged from a low of 3.36 to a high of 13.59.
How does Continental Coal's Gross Margin % compare to competitors?
Continental Coal's Gross Margin % of -1.00% can be compared against companies in the Steel industry. The industry median Gross Margin % is 12.60. Historically, Continental Coal's own Gross Margin % has ranged from 3.36 to 13.59 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 597 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Continental Coal and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Coal's current Gross Margin % is -1.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Coal stock overvalued right now?
Continental Coal (ASX:CCC) has a current Gross Margin % of -1.00%. The current Gross Margin % is -1.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Continental Coal (ASX:CCC), the current Gross Margin % is -1.00% as of Jun. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Continental Coal Ltd is a coal exploration and development company. It is engaged in producing, development and exploration of coal in its projects located in South Africa's coal fields. Its three main operating mines are Vlakvarkfontein, Ferreira and Penumbra mine. Its development projects include De Wittekrans development project; and exploration projects, such as Vaalbank, Leiden and Knapdaar in South Africa, as well as Kweneng and Serowe exploration projects in Botswana.
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