PT Berau Coal Energy Tbk (FRA:9BC) 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
PT Berau Coal Energy Tbk had a gross margin of 20.74% for the quarter that ended in Dec. 2022 => Competition eroding margins
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.
PT Berau Coal Energy Tbk Gross Margin % Related Terms
PT Berau Coal Energy Tbk Gross Margin % Historical Data
* 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.
For the Thermal Coal subindustry, PT Berau Coal Energy Tbk'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.
PT Berau Coal Energy Tbk Gross Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, PT Berau Coal Energy Tbk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PT Berau Coal Energy Tbk'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.
PT Berau Coal Energy Tbk (FRA:9BC) has a Gross Margin % of 20.74% as of Dec. 2022. Gross margin is the ratio of total gross profit to net sales. View historical data on PT Berau Coal Energy Tbk and its competitors. This is near median its historical median of 19.92.
Is PT Berau Coal Energy Tbk's Gross Margin % too high?
PT Berau Coal Energy Tbk's current Gross Margin % of 20.74% is near median its 10-year median of 19.92. The Other Energy Sources industry median Gross Margin % is 18.78. PT Berau Coal Energy Tbk's value of 20.74% is 10.5% above this industry median.
How does PT Berau Coal Energy Tbk's Gross Margin % compare to METC and HNRG?
PT Berau Coal Energy Tbk's Gross Margin % of 20.74% can be compared against companies in the Other Energy Sources industry. The industry median Gross Margin % is 18.78. PT Berau Coal Energy Tbk's value of 20.74% is 10.5% above this benchmark. While the company's 10-year median is 19.92 vs. the industry median of 18.78, PT Berau Coal Energy Tbk has consistently been above the industry average. 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 Other Energy Sources company?
The median Gross Margin % among Other Energy Sources companies is 18.78, based on 124 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. PT Berau Coal Energy Tbk's current Gross Margin % of 20.74% is 10.5% 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 PT Berau Coal Energy Tbk and its competitors. For the Other Energy Sources industry, the median Gross Margin % is 18.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Berau Coal Energy Tbk's current Gross Margin % is 20.74%, which is near median its own 10-year median of 19.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Berau Coal Energy Tbk stock overvalued right now?
PT Berau Coal Energy Tbk (FRA:9BC) has a current Gross Margin % of 20.74%. The current Gross Margin % is 20.74%, which is near median its 10-year median of 19.92 and 10.5% above the Other Energy Sources industry median of 18.78. 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 PT Berau Coal Energy Tbk (FRA:9BC), the current Gross Margin % is 20.74% as of Dec. 2022. 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.
PT Berau Coal Energy Tbk functions as a holding company. It is mainly involved in trading, mining, plantation, construction, real estate, agriculture, printing, industry, transportation, and services. The company, through its subsidiary, engaged in coal mining. It has an interest in three open cut mining operations; Lati, Binungan, and Sambarata. The firm supplies coal to customers in Indonesia, China, Hong Kong, India, Japan, South Korea, Taiwan, the Philippines, and Thailand. Its customers are mainly utility companies and coal trading companies.
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