BPZ ResourcesFRA:NA4 Gross Margin % is 30.37% as of Mar. 2015, which is 32% below its 10-year median of 44.41. The stock has 2 warning signs investors should review.
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
BPZ Resources had a gross margin of 30.37% for the quarter that ended in Mar. 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.
BPZ Resources Gross Margin % Related Terms
BPZ Resources Gross Margin % Historical Data
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The historical data trend for BPZ Resources'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.
For the Oil & Gas E&P subindustry, BPZ Resources'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.
BPZ Resources Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, BPZ Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BPZ Resources'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.
BPZ Resources (FRA:NA4) has a Gross Margin % of 30.37% as of Mar. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on BPZ Resources and its competitors. This is 32% below median its historical median of 44.41.
Is BPZ Resources' Gross Margin % too high?
BPZ Resources' current Gross Margin % of 30.37% is 32% below median its 10-year median of 44.41. The Oil & Gas industry median Gross Margin % is 25.62. BPZ Resources' value of 30.37% is 18.5% above this industry median.
How does BPZ Resources' Gross Margin % compare to competitors?
BPZ Resources' Gross Margin % of 30.37% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.62. BPZ Resources' value of 30.37% is 18.5% above this benchmark. While the company's 10-year median is 44.41 vs. the industry median of 25.62, BPZ Resources 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 25.62, based on 870 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. BPZ Resources's current Gross Margin % of 30.37% is 18.5% 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 BPZ Resources 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. BPZ Resources's current Gross Margin % is 30.37%, which is 32% below median its own 10-year median of 44.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BPZ Resources stock overvalued right now?
BPZ Resources (FRA:NA4) has a current Gross Margin % of 30.37%. The current Gross Margin % is 30.37%, which is 32% below median its 10-year median of 44.41 and 18.5% above the Oil & Gas industry median of 25.62. 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 BPZ Resources (FRA:NA4), the current Gross Margin % is 30.37% as of Mar. 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.
BPZ Resources Inc is a Texas corporation, incorporated in 1993. The Company is an independent oil and gas company engaged in the exploration, development and production of oil and natural gas in Peru and Ecuador. The Company is in the process of developing its Peruvian oil and gas reserves. It has completed the installation of the new CX-15 platform in the Corvina field to continue the development of the field and continued its drilling campaign there with completion of the CX-15-1D well. The customer of the Company is Peruvian national oil company, Petroleos del Peru - PETROPERU S.A.
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