Gross Margin % is calculated as gross profit divided by its revenue. ENGlobal's Gross Profit for the
three
months ended in Sep. 2024 was $0.48 Mil. ENGlobal's Revenue for the
three
months ended in Sep. 2024 was $5.68 Mil. Therefore, ENGlobal's Gross Margin % for the quarter that ended in Sep. 2024 was 8.36%.
The historical rank and industry rank for ENGlobal's Gross Margin % or its related term are showing as below:
ENGC's Gross Margin % is not ranked *
in the Construction industry.
Industry Median: 20.705 * Ranked among companies with meaningful Gross Margin % only.
ENGlobal had a gross margin of 8.36% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ENGlobal was 0.00% per year.
ENGlobal (OTCPK:ENGC) 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
ENGlobal had a gross margin of 8.36% for the quarter that ended in Sep. 2024 => 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.
ENGlobal Gross Margin % Related Terms
ENGlobal Gross Margin % Historical Data
* Premium members only.
The historical data trend for ENGlobal'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.
ENGC vs KAST, CCAJ, SODE: Gross Margin % Comparison
For the Engineering & Construction subindustry, ENGlobal'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.
ENGlobal Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, ENGlobal's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ENGlobal'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.
ENGlobal (ENGC) has a Gross Margin % of 8.36% as of Sep. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on ENGlobal and its competitors.
Is ENGlobal's Gross Margin % too high?
ENGlobal's current Gross Margin % is 8.36%. The Construction industry median Gross Margin % is 20.71. ENGlobal's value of 8.36% is 59.6% below this industry median. Overall, ENGlobal has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does ENGlobal's Gross Margin % compare to KAST and CCAJ?
ENGlobal's Gross Margin % of 8.36% can be compared against companies in the Construction industry. The industry median Gross Margin % is 20.71. ENGlobal's value of 8.36% is 59.6% 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 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. ENGlobal's current Gross Margin % of 8.36% is 59.6% 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 ENGlobal and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ENGlobal's current Gross Margin % is 8.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ENGlobal stock overvalued right now?
ENGlobal (ENGC) has a current Gross Margin % of 8.36%. The current Gross Margin % is 8.36% and 59.6% below the Construction industry median of 20.71. ENGlobal's overall GF Score™ is 16/100. 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 ENGlobal (ENGC), the current Gross Margin % is 8.36% as of Sep. 2024. 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.
ENGlobal Corp engages in providing engineering and professional services to the energy industry. The company operates through two segments Commercial and Government Services. The Commercial segment derives revenue on contracts from time-and-material fees charged for professional and technical services. The Government segment provides services related to the design, integration and implementation of process distributed control and analyzer systems, advanced automated data gathering systems, information technology and the maintenance of these systems to the U.S. Government globally.
16GF Score
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