Capital Power Corp gross margin has been in long-term decline. The average rate of decline per year is -9.6%.
The historical rank and industry rank for Capital Power's Gross Margin % or its related term are showing as below:
FRA:2CP'
s Gross Margin % Range Over the Past 10 Years
Min: 43.62 Med: 64.6 Max: 76.42
Current: 49.64
During the past 13 years, the highestGross Margin % of Capital Power was 76.42%. The lowest was 43.62%. And the median was 64.60%.
FRA:2CP's Gross Margin % is ranked better than 66.33% of 392
companies
in the Utilities - Independent Power Producers industry
Industry Median: 34.885
vs FRA:2CP: 49.64
Capital Power had a gross margin of 55.73% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Capital Power was -9.60% per year.
Capital Power Gross Margin % Historical Data
The historical data trend for Capital Power'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 Capital Power's Gross Margin %
For the Utilities - Independent Power Producers subindustry, Capital Power'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.
Capital Power's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Capital Power's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Capital Power'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.
Capital Power (FRA:2CP) 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
Capital Power had a gross margin of 55.73% for the quarter that ended in Sep. 2024 => 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.
Capital Power Gross Margin % Related Terms
Thank you for viewing the detailed overview of Capital Power's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Capital Power Corp is a North American power producer whose principal activities are developing, acquiring, and operating power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities. These are located throughout Western and Central Canada and the U.S. Capital Power's natural gas and coal facilities, specifically its Genesee and Shepard sites, account for most of its electric capacity and cash flow production. The company generates the vast majority of its revenue from sales of electricity and natural gas. The company's customers include a variety of industrial and commercial consumers, independent transmission system operators, and government-owned entities.
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