Egyptian Chemical Industries (CAI:EGCH) Gross Margin %: 6.24% (As of Jun. 2015)


What is Egyptian Chemical Industries Gross Margin %?

Egyptian Chemical Industries CAI:EGCH -0.23% Gross Margin % is 6.24% as of Jun. 2015.

Gross Margin % is calculated as gross profit divided by its revenue. Egyptian Chemical Industries's Gross Profit for the six months ended in Jun. 2015 was E£18.3 Mil. Egyptian Chemical Industries's Revenue for the six months ended in Jun. 2015 was E£293.6 Mil. Therefore, Egyptian Chemical Industries's Gross Margin % for the quarter that ended in Jun. 2015 was 6.24%.


The historical rank and industry rank for Egyptian Chemical Industries's Gross Margin % or its related term are showing as below:


CAI:EGCH's Gross Margin % is not ranked *
in the Chemicals industry.
Industry Median: 23.465
* Ranked among companies with meaningful Gross Margin % only.

Egyptian Chemical Industries had a gross margin of 6.24% for the quarter that ended in Jun. 2015 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Egyptian Chemical Industries was 0.00% per year.

Egyptian Chemical Industries  (CAI:EGCH) 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

Egyptian Chemical Industries had a gross margin of 6.24% for the quarter that ended in Jun. 2015 => 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.

Egyptian Chemical Industries Gross Margin % Related Terms

Egyptian Chemical Industries Gross Margin % Historical Data

* Premium members only.

The historical data trend for Egyptian Chemical 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.

Egyptian Chemical Industries Gross Margin % Chart

Egyptian Chemical Industries Annual Data
Trend Dec11 Dec12
Gross Margin %
0.00 0.00

Egyptian Chemical Industries Semi-Annual Data
Dec12 Jun14 Jun15
Gross Margin % 0.00 6.46 6.24

Egyptian Chemical Industries Gross Margin % Competitor Comparison

For the Chemicals subindustry, Egyptian Chemical 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.

Egyptian Chemical Industries Gross Margin % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Egyptian Chemical Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Egyptian Chemical Industries's Gross Margin % falls into.


Egyptian Chemical Industries Gross Margin % Calculation

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

Egyptian Chemical Industries's Gross Margin for the fiscal year that ended in Dec. 2012 is calculated as

Gross Margin % (A: Dec. 2012 )=Gross Profit (A: Dec. 2012 ) / Revenue (A: Dec. 2012 )
=0 / 0
=(Revenue - Cost of Goods Sold) / Revenue
=(0 - 0) / 0
=N/A %

Egyptian Chemical Industries's Gross Margin for the quarter that ended in Jun. 2015 is calculated as


Gross Margin % (Q: Jun. 2015 )=Gross Profit (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=18.3 / 293.605
=(Revenue - Cost of Goods Sold) / Revenue
=(293.605 - 275.28) / 293.605
=6.24 %

* 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 6.24% mean?
Egyptian Chemical Industries (CAI:EGCH) has a Gross Margin % of 6.24% as of Jun. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on Egyptian Chemical Industries and its competitors.
Is Egyptian Chemical Industries' Gross Margin % too high?
Egyptian Chemical Industries' current Gross Margin % is 6.24%. The Chemicals industry median Gross Margin % is 23.47. Egyptian Chemical Industries' value of 6.24% is 73.4% below this industry median.
How does Egyptian Chemical Industries' Gross Margin % compare to competitors?
Egyptian Chemical Industries' Gross Margin % of 6.24% can be compared against companies in the Chemicals industry. The industry median Gross Margin % is 23.47. Egyptian Chemical Industries' value of 6.24% is 73.4% 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.47, based on 1,556 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. Egyptian Chemical Industries's current Gross Margin % of 6.24% is 73.4% 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 Egyptian Chemical Industries and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Egyptian Chemical Industries's current Gross Margin % is 6.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Egyptian Chemical Industries stock overvalued right now?
Egyptian Chemical Industries (CAI:EGCH) has a current Gross Margin % of 6.24%. The current Gross Margin % is 6.24% and 73.4% below the Chemicals industry median of 23.47. 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 Egyptian Chemical Industries (CAI:EGCH), the current Gross Margin % is 6.24% as of Jun. 2015. 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.

Egyptian Chemical Industries Business Description

Address Aswan-Elsaad ELaaly Road, Aswan, EGY
Egyptian Chemical Industries manufactures various chemicals. The company's product portfolio comprises of Ammonium nitrate, Ferro-Silicon alloy, liquid Ammonium Nitrate, oxygen gas, Nitric Acid, Hydrochloric Acid, Silica fume, and Aqua- Ammonia.