Perennial Energy Holdings (FRA:PEZ) 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
Perennial Energy Holdings had a gross margin of 31.26% for the quarter that ended in Dec. 2025 => 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.
Perennial Energy Holdings Gross Margin % Related Terms
Perennial Energy Holdings 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.
FRA:PEZ vs HCC, AMR, METC: Gross Margin % Comparison
For the Coking Coal subindustry, Perennial Energy Holdings'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.
Perennial Energy Holdings Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Perennial Energy Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Perennial Energy Holdings'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.
Perennial Energy Holdings (FRA:PEZ) has a Gross Margin % of 31.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Perennial Energy Holdings and its competitors. This is 40% below median its historical median of 51.97. Over the past decade, Perennial Energy Holdings' Gross Margin % has ranged from 29.84 to 62.65. According to the industry distribution chart, Perennial Energy Holdings ranks #94 out of 593 companies in the Steel industry, placing it in the top 15.9%.
Is Perennial Energy Holdings' Gross Margin % too high?
Perennial Energy Holdings' current Gross Margin % of 31.26% is 40% below median its 10-year median of 51.97. Over the past 10 years, this metric has ranged from a low of 29.84 to a high of 62.65. The Steel industry median Gross Margin % is 12.60. Perennial Energy Holdings' value of 31.26% is 148.1% above this industry median. Based on the distribution chart, Perennial Energy Holdings ranks #94 out of 593 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Perennial Energy Holdings has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Perennial Energy Holdings' Gross Margin % compare to HCC and AMR?
According to the Steel industry distribution chart, Perennial Energy Holdings ranks #94 out of 593 companies for Gross Margin %. This places Perennial Energy Holdings in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.60. Perennial Energy Holdings' value of 31.26% is 148.1% above this benchmark. Historically, Perennial Energy Holdings' own Gross Margin % has ranged from 29.84 to 62.65 over the past decade. While the company's 10-year median is 51.97 vs. the industry median of 12.60, Perennial Energy Holdings 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 a Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Perennial Energy Holdings's current Gross Margin % of 31.26% is 148.1% 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 Perennial Energy Holdings and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perennial Energy Holdings's current Gross Margin % is 31.26%, which is 40% below median its own 10-year median of 51.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perennial Energy Holdings stock overvalued right now?
Perennial Energy Holdings (FRA:PEZ) has a current Gross Margin % of 31.26%. The stock's GF Value™ is €0.07, compared to a current price of €0.07 — trading 2.9% above its estimated fair value. The current Gross Margin % is 31.26%, which is 40% below median its 10-year median of 51.97 and 148.1% above the Steel industry median of 12.60. Perennial Energy Holdings' overall GF Score™ is 56/100 with 7 warning signs to review. 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 Perennial Energy Holdings (FRA:PEZ), the current Gross Margin % is 31.26% as of Dec. 2025. 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.
Is Perennial Energy Holdings (FRA:PEZ) Overvalued in 2026?
Based on GuruFocus' analysis, Perennial Energy Holdings stock appears to be overvalued.
The current stock price of €0.07 is trading 2.9% above its estimated GF Value™ of €0.07.
Key valuation signals for FRA:PEZ:
Gross Margin %: 31.26% (40% below median its 10-year median of 51.97)
GF Value™: €0.07 vs. price of €0.07 (2.9% above fair value)
Industry Position: 148.1% above the Steel median (#94 of 593)
No single metric tells the full story. See the FRA:PEZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perennial Energy Holdings Ltd is a coal mining company. Along with its subsidiaries, it is principally engaged in the exploration and mining of coking coal and coal refinery in the People's Republic of China. It operates three underground coal mines, namely, Hongguo Coal Mine, Baogushan Coal Mine, and Xiejiahegou Coal Mine. The company earns revenue from the sale of Clean coking coal, which accounts for the majority of the revenue, Raw coal, Middling coal, Sludge coal, and sales of coalbed methane gas.
56GF Score
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