Caza Oil & GasFRA:COJ Gross Margin % is 32.76% as of Dec. 2015, which is 55% below its 10-year median of 72.61. The stock has 3 warning signs investors should review.
Caza Oil & Gas Inc gross margin has been in long term decline. The average rate of decline per year is -3.7%.
The historical rank and industry rank for Caza Oil & Gas's Gross Margin % or its related term are showing as below:
FRA:COJ'
s Gross Margin % Range Over the Past 10 Years
Min: 57.65 Med: 72.61 Max: 78.88
Current: 57.65
During the past 10 years, the highestGross Margin % of Caza Oil & Gas was 78.88%. The lowest was 57.65%. And the median was 72.61%.
FRA:COJ's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 25.7
vs FRA:COJ: 57.65
Caza Oil & Gas had a gross margin of 32.76% for the quarter that ended in Dec. 2015 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Caza Oil & Gas was -3.70% per year.
Caza Oil & Gas (FRA:COJ) 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
Caza Oil & Gas had a gross margin of 32.76% for the quarter that ended in Dec. 2015 => 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.
Caza Oil & Gas Gross Margin % Related Terms
Caza Oil & Gas Gross Margin % Historical Data
* Premium members only.
The historical data trend for Caza Oil & Gas'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.
FRA:COJ vs EXCE, UPLC, PVL: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Caza Oil & Gas'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.
Caza Oil & Gas Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Caza Oil & Gas's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Caza Oil & Gas'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.
Caza Oil & Gas (FRA:COJ) has a Gross Margin % of 32.76% as of Dec. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on Caza Oil & Gas and its competitors. This is 55% below median its historical median of 72.61. Over the past decade, Caza Oil & Gas' Gross Margin % has ranged from 57.65 to 78.88.
Is Caza Oil & Gas' Gross Margin % too high?
Caza Oil & Gas' current Gross Margin % of 32.76% is 55% below median its 10-year median of 72.61. Over the past 10 years, this metric has ranged from a low of 57.65 to a high of 78.88. The Oil & Gas industry median Gross Margin % is 25.70. Caza Oil & Gas' value of 32.76% is 27.5% above this industry median.
How does Caza Oil & Gas' Gross Margin % compare to EXCE and UPLC?
Caza Oil & Gas' Gross Margin % of 32.76% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.70. Caza Oil & Gas' value of 32.76% is 27.5% above this benchmark. Historically, Caza Oil & Gas' own Gross Margin % has ranged from 57.65 to 78.88 over the past decade. While the company's 10-year median is 72.61 vs. the industry median of 25.70, Caza Oil & Gas 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 Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 869 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. Caza Oil & Gas's current Gross Margin % of 32.76% is 27.5% 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 Caza Oil & Gas and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caza Oil & Gas's current Gross Margin % is 32.76%, which is 55% below median its own 10-year median of 72.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caza Oil & Gas stock overvalued right now?
Caza Oil & Gas (FRA:COJ) has a current Gross Margin % of 32.76%. The current Gross Margin % is 32.76%, which is 55% below median its 10-year median of 72.61 and 27.5% above the Oil & Gas industry median of 25.70. 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 Caza Oil & Gas (FRA:COJ), the current Gross Margin % is 32.76% as of Dec. 2015. 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.
Caza Oil & Gas Inc is engaged in the exploration for and the development, production, and acquisition of, petroleum and natural gas reserves. The company primarily focuses on the Permian Basin of Southeast New Mexico and West Texas. Its exploration properties include Gramma Ridge, Gateway, Marathon Road, East Marathon Road, Lennox, Forehand Ranch, Forehand Ranch South, Jazzmaster, and others.
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