Evolution Petroleum Corp gross margin has been in long-term decline. The average rate of decline per year is -9.2%.
The historical rank and industry rank for Evolution Petroleum's Gross Margin % or its related term are showing as below:
EPM'
s Gross Margin % Range Over the Past 10 Years
Min: 19.56 Med: 47.08 Max: 56.37
Current: 19.56
During the past 13 years, the highestGross Margin % of Evolution Petroleum was 56.37%. The lowest was 19.56%. And the median was 47.08%.
EPM's Gross Margin % is ranked worse than 61.07% of 894
companies
in the Oil & Gas industry
Industry Median: 28.53
vs EPM: 19.56
Evolution Petroleum had a gross margin of 10.11% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Evolution Petroleum was -9.20% per year.
Evolution Petroleum Gross Margin % Historical Data
The historical data trend for Evolution Petroleum'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.
Competitive Comparison of Evolution Petroleum's Gross Margin %
For the Oil & Gas E&P subindustry, Evolution Petroleum'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.
Evolution Petroleum's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Evolution Petroleum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Evolution Petroleum'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.
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
Evolution Petroleum had a gross margin of 10.11% for the quarter that ended in Dec. 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.
Evolution Petroleum Gross Margin % Related Terms
Thank you for viewing the detailed overview of Evolution Petroleum's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Evolution Petroleum Corp is an independent oil and gas company operating in the United States. It is engaged predominantly in the acquisition, exploitation, and development of properties for the production of crude oil and natural gas, onshore in the United States. The company's revenues are generated from its crude oil, natural gas, and NGL production from the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field in Wyoming; and the Delhi Field in Northeast Louisiana.
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