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
Caspian Services had a gross margin of 60.27% for the quarter that ended in Jun. 2016 => Durable 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.
Caspian Services Gross Margin % Related Terms
Caspian Services Gross Margin % Historical Data
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The historical data trend for Caspian Services'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.
CSSV vs GLRI, TIRTZ, GLFH: Gross Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Caspian Services'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.
Caspian Services Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Caspian Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Caspian Services'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.
Caspian Services (CSSV) has a Gross Margin % of 60.27% as of Jun. 2016. Gross margin is the ratio of total gross profit to net sales. View historical data on Caspian Services and its competitors.
Is Caspian Services' Gross Margin % too high?
Caspian Services' current Gross Margin % is 60.27%. The Oil & Gas industry median Gross Margin % is 25.70. Caspian Services' value of 60.27% is 134.5% above this industry median.
How does Caspian Services' Gross Margin % compare to GLRI and TIRTZ?
Caspian Services' Gross Margin % of 60.27% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.70. Caspian Services' value of 60.27% is 134.5% above 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 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. Caspian Services's current Gross Margin % of 60.27% is 134.5% above 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 Caspian Services and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caspian Services's current Gross Margin % is 60.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caspian Services stock overvalued right now?
Caspian Services (CSSV) has a current Gross Margin % of 60.27%. The current Gross Margin % is 60.27% and 134.5% above the Oil & Gas industry median of 25.70. 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 Caspian Services (CSSV), the current Gross Margin % is 60.27% as of Jun. 2016. 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.
Caspian Services Inc provides oilfield services to oil & gas industry in Kazakhstan. The company operates in three reportable segments including Vessel operations, Geophysical services, and Marine base services. Vessel operations consist of chartering a fleet of shallow draft offshore support vessels to customers performing oil and gas exploration activities in the Caspian Sea. Geophysical services consist of providing seismic data acquisition services to oil and gas companies operating onshore in Kazakhstan. Marine base service consists of operating a marine base with a boat repair and drydocking services yard located at the port of Bautino on the North Caspian Sea. It generates the majority of the revenue from Vessel operations segment.
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