BGEM (Blue Gem Enterprise) Gross Margin %: 2.50% (As of Aug. 2010)


What is Blue Gem Enterprise Gross Margin %?

Blue Gem Enterprise BGEM -98.75% Gross Margin % is 2.50% as of Aug. 2010.

Gross Margin % is calculated as gross profit divided by its revenue. Blue Gem Enterprise's Gross Profit for the three months ended in Aug. 2010 was $0.02 Mil. Blue Gem Enterprise's Revenue for the three months ended in Aug. 2010 was $0.72 Mil. Therefore, Blue Gem Enterprise's Gross Margin % for the quarter that ended in Aug. 2010 was 2.50%.


The historical rank and industry rank for Blue Gem Enterprise's Gross Margin % or its related term are showing as below:


BGEM's Gross Margin % is not ranked *
in the Beverages - Non-Alcoholic industry.
Industry Median: 38.43
* Ranked among companies with meaningful Gross Margin % only.

Blue Gem Enterprise had a gross margin of 2.50% for the quarter that ended in Aug. 2010 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Blue Gem Enterprise was 0.00% per year.

Blue Gem Enterprise  (OTCPK:BGEM) 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

Blue Gem Enterprise had a gross margin of 2.50% for the quarter that ended in Aug. 2010 => 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.

Blue Gem Enterprise Gross Margin % Related Terms

Blue Gem Enterprise Gross Margin % Historical Data

* Premium members only.

The historical data trend for Blue Gem Enterprise'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.

Blue Gem Enterprise Gross Margin % Chart

Blue Gem Enterprise Annual Data
Trend May08 May09 May10
Gross Margin %
0.00 0.00 0.75

Blue Gem Enterprise Quarterly Data
Aug07 Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.75 2.50

BGEM vs BEVS, MOJO, LBIX: Gross Margin % Comparison

For the Beverages - Non-Alcoholic subindustry, Blue Gem Enterprise'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.

Blue Gem Enterprise Gross Margin % vs Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Blue Gem Enterprise's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Blue Gem Enterprise's Gross Margin % falls into.


Blue Gem Enterprise Gross Margin % Calculation

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

Blue Gem Enterprise's Gross Margin for the fiscal year that ended in May. 2010 is calculated as

Gross Margin % (A: May. 2010 )=Gross Profit (A: May. 2010 ) / Revenue (A: May. 2010 )
=0 / 0.133
=(Revenue - Cost of Goods Sold) / Revenue
=(0.133 - 0.132) / 0.133
=0.75 %

Blue Gem Enterprise's Gross Margin for the quarter that ended in Aug. 2010 is calculated as


Gross Margin % (Q: Aug. 2010 )=Gross Profit (Q: Aug. 2010 ) / Revenue (Q: Aug. 2010 )
=0 / 0.719
=(Revenue - Cost of Goods Sold) / Revenue
=(0.719 - 0.701) / 0.719
=2.50 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 2.50% mean?
Blue Gem Enterprise (BGEM) has a Gross Margin % of 2.50% as of Aug. 2010. Gross margin is the ratio of total gross profit to net sales. View historical data on Blue Gem Enterprise and its competitors.
Is Blue Gem Enterprise's Gross Margin % too high?
Blue Gem Enterprise's current Gross Margin % is 2.50%. The Beverages - Non-Alcoholic industry median Gross Margin % is 38.43. Blue Gem Enterprise's value of 2.50% is 93.5% below this industry median.
How does Blue Gem Enterprise's Gross Margin % compare to BEVS and MOJO?
Blue Gem Enterprise's Gross Margin % of 2.50% can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median Gross Margin % is 38.43. Blue Gem Enterprise's value of 2.50% is 93.5% below this benchmark. 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 Beverages - Non-Alcoholic company?
The median Gross Margin % among Beverages - Non-Alcoholic companies is 38.43, based on 115 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. Blue Gem Enterprise's current Gross Margin % of 2.50% is 93.5% below the industry median. 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 Blue Gem Enterprise and its competitors. For the Beverages - Non-Alcoholic industry, the median Gross Margin % is 38.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blue Gem Enterprise's current Gross Margin % is 2.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Blue Gem Enterprise stock overvalued right now?
Blue Gem Enterprise (BGEM) has a current Gross Margin % of 2.50%. The current Gross Margin % is 2.50% and 93.5% below the Beverages - Non-Alcoholic industry median of 38.43. 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 Blue Gem Enterprise (BGEM), the current Gross Margin % is 2.50% as of Aug. 2010. 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.

Blue Gem Enterprise Business Description

Address 12805 N. W. 42 Avenue, Opa-locka, FL, USA, 33054
Blue Gem Enterprise focuses on operating as a full-service direct store beverage distribution company. The company expects to manage and distribute select allied brands with beverage manufacturers. It is competing in all areas of the non-alcoholic beverage industry including; ice teas, juices, waters, shots, carbonated soft drinks, and more.