ERINQ (Erin Energy) Gross Margin %: -245.19% (As of Dec. 2017)

What is Erin Energy Gross Margin %?

Erin Energy ERINQ -99.00% Gross Margin % is -245.19% as of Dec. 2017.

Gross Margin % is calculated as gross profit divided by its revenue. Erin Energy's Gross Profit for the three months ended in Dec. 2017 was $-53.1 Mil. Erin Energy's Revenue for the three months ended in Dec. 2017 was $21.7 Mil. Therefore, Erin Energy's Gross Margin % for the quarter that ended in Dec. 2017 was -245.19%.

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

ERINQ's Gross Margin % is not ranked ^*
in the Oil & Gas industry.
Industry Median: 25.62
* Ranked among companies with meaningful Gross Margin % only.

Erin Energy had a gross margin of -245.19% for the quarter that ended in Dec. 2017 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Erin Energy was 0.00% per year.

Erin Energy (OTCPK:ERINQ) 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

Erin Energy had a gross margin of -245.19% for the quarter that ended in Dec. 2017 => 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.

Erin Energy Gross Margin % Related Terms

Erin Energy Gross Margin % Historical Data

* Premium members only.

The historical data trend for Erin Energy'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.

Erin Energy Gross Margin % Chart

Erin Energy Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Gross Margin %

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-10.50

-76.08

-171.42

-104.39

-36.04

Erin Energy Quarterly Data
	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17
Gross Margin %	Get a 7-Day Free Trial															-284.11	18.46	25.34	21.36	-245.19

ERINQ vs FPPP, UNGS, GBEYF: Gross Margin % Comparison

For the Oil & Gas E&P subindustry, Erin Energy'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.

Erin Energy Gross Margin % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Erin Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Erin Energy's Gross Margin % falls into.

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Erin Energy Gross Margin % Calculation

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

Erin Energy's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )	=	Gross Profit (A: Dec. 2017 )	/	Revenue (A: Dec. 2017 )
	=	-36.5	/	101.173
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(101.173 - 137.634)	/	101.173
	=	-36.04 %

Erin Energy's Gross Margin for the quarter that ended in Dec. 2017 is calculated as

Gross Margin % (Q: Dec. 2017 )	=	Gross Profit (Q: Dec. 2017 )	/	Revenue (Q: Dec. 2017 )
	=	-53.1	/	21.664
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(21.664 - 74.782)	/	21.664
	=	-245.19 %

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 -245.19% mean?

Erin Energy (ERINQ) has a Gross Margin % of -245.19% as of Dec. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Erin Energy and its competitors.

Is Erin Energy's Gross Margin % too high?

Erin Energy's current Gross Margin % is -245.19%.

How does Erin Energy's Gross Margin % compare to FPPP and UNGS?

Erin Energy's Gross Margin % of -245.19% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.62. 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 25.62, based on 872 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. 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 Erin Energy and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Erin Energy's current Gross Margin % is -245.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Erin Energy stock overvalued right now?

Erin Energy (ERINQ) has a current Gross Margin % of -245.19%. The current Gross Margin % is -245.19%. 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 Erin Energy (ERINQ), the current Gross Margin % is -245.19% as of Dec. 2017. 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.

Erin Energy Business Description

Industry Energy Oil & Gas

Comparable Companies TSXV:PTP.H XCNQ:EI TSXV:CEN TSXV:TPC FPPP TSXV:WTR TSXV:STMP UNGS TSXV:PPE.H TSXV:CA.H TSXV:MMO.H TSXV:ROC.H TSXV:GX GBEYF SPOWF TSXV:CE.H TSXV:KLE.H TSXV:TZR TSXV:TIP.H TSXV:CTI.H

Address 1330 Post Oak Boulevard, Suite 2250, Houston, TX, USA, 77056

Website http://www.erinenergy.com

Erin Energy Corp is an independent oil and gas exploration and production company with a focus on finding and producing oil in sub-Saharan Africa.