ICP (IC Power) Gross Margin %: 20.47% (As of Sep. 2016)


What is IC Power Gross Margin %?

IC Power ICP Gross Margin % is 20.47% as of Sep. 2016.

Gross Margin % is calculated as gross profit divided by its revenue. IC Power's Gross Profit for the three months ended in Sep. 2016 was $102.77 Mil. IC Power's Revenue for the three months ended in Sep. 2016 was $502.08 Mil. Therefore, IC Power's Gross Margin % for the quarter that ended in Sep. 2016 was 20.47%.


The historical rank and industry rank for IC Power's Gross Margin % or its related term are showing as below:


ICP's Gross Margin % is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 31.35
* Ranked among companies with meaningful Gross Margin % only.

IC Power had a gross margin of 20.47% for the quarter that ended in Sep. 2016 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for IC Power was 0.00% per year.

IC Power  (NYSE:ICP) 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

IC Power had a gross margin of 20.47% for the quarter that ended in Sep. 2016 => 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.

IC Power Gross Margin % Related Terms

IC Power Gross Margin % Historical Data

* Premium members only.

The historical data trend for IC 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.

IC Power Gross Margin % Chart

IC Power Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Gross Margin %
22.44 23.81 24.38 20.86

IC Power Quarterly Data
Dec12 Dec13 Mar14 Jun14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.79 20.13 20.70 16.93 20.47

ICP vs CETY, QPWR, PSPW: Gross Margin % Comparison

For the Utilities - Independent Power Producers subindustry, IC 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.

IC Power Gross Margin % vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, IC Power's Gross Margin % distribution charts can be found below:

* The bar in red indicates where IC Power's Gross Margin % falls into.


IC Power Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

IC Power's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=268.8 / 1288.739
=(Revenue - Cost of Goods Sold) / Revenue
=(1288.739 - 1019.899) / 1288.739
=20.86 %

IC Power's Gross Margin for the quarter that ended in Sep. 2016 is calculated as


Gross Margin % (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=102.8 / 502.08
=(Revenue - Cost of Goods Sold) / Revenue
=(502.08 - 399.313) / 502.08
=20.47 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 20.47% mean?
IC Power (ICP) has a Gross Margin % of 20.47% as of Sep. 2016. Gross margin is the ratio of total gross profit to net sales. View historical data on IC Power and its competitors.
Is IC Power's Gross Margin % too high?
IC Power's current Gross Margin % is 20.47%. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. IC Power's value of 20.47% is 34.7% below this industry median.
How does IC Power's Gross Margin % compare to CETY and QPWR?
IC Power's Gross Margin % of 20.47% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Gross Margin % is 31.35. IC Power's value of 20.47% is 34.7% below this benchmark. 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 Utilities - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 403 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. IC Power's current Gross Margin % of 20.47% is 34.7% below 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 IC Power and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IC Power's current Gross Margin % is 20.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IC Power stock overvalued right now?
IC Power (ICP) has a current Gross Margin % of 20.47%. The current Gross Margin % is 20.47% and 34.7% below the Utilities - Independent Power Producers industry median of 31.35. 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 IC Power (ICP), the current Gross Margin % is 20.47% as of Sep. 2016. 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.

IC Power Business Description

IC Power Pte Ltd is a holding company incorporated under the laws of Singapore in May 2015. The Company through its subsidiaries owns, develops and operates power facilities located in power generation markets in Latin America, the Caribbean and Israel, utilizing a range of fuels, including natural gas, hydroelectric, HFO, diesel and wind. The Company has installed capacity of approximately 2,642 MW. The Company operates in geographical areas including Peru; Israel; Central America including Nicaragua, Guatemala, El Salvador & Panama; and other including Bolivia, Chile, Jamaica, Colombia & Dominican Republic. The Company owns, operates and develops power plants to generate and sell electricity to distribution companies and unregulated consumers under long-term PPAs and to the spot market. The Company Peru segment includes Kallpa I, Kallpa II, Kallpa III, Kallpa IV and Las Flores turbines. The Israel segment includes OPC plant. The Central America segment includes Corinto, Tipitapa Power, Amayo I, and Amayo II in Nicaragua; Puerto Quetzal plant in Guatemala; Nejapa plant in El Salvador, and Kanan plant in Panama. The Other segment includes Zongo Valley plants including Zongo, Tiquimani, Botijlaca, Cutichucho, Santa Rosa, Sainani, Chururaqui, Harca, Cahua, & Huaji; and Miguillas Valley plants including Miguillas, Angostura, Choquetanga, Carabuco, and El Alto-Kenko all in Bolivia; Central Cardones plant in Chile; Colmito plant in Colmito; CEPP I & CEPP II in Dominican Republic; JPPC plant in Jamaica; La Hocha, Purificación, and Entrerios plants in Colombia; Pedregal in Panama. The Company offers services to governments, local distribution companies, and/or non-regulated consumers, depending upon the operating company and the particular country of operation. Its customers include Edelnor S.A.A., Luz del Sur S.A.A., Hidrandina S.A., Edecañete S.A., Electro Sur Este S.A.A., Sociedad Eléctrica del Sur Oeste, S.A., Distribuidora de Electricidad del Norte S.A., Distribuidora de Electricidad del Sur S.A., Southern Perú Copper Corporation, Empresa de Distribución Eléctrica Chiriqui, S.A., Peruvian Investment Promotion Agency, Empresa de Distribución Eléctrica Metro Oeste S.A., and others. The Company's competitors include IEC, Dorad Energy Ltd., and other IPPs. The Company's business is subject to significant and diverse government regulation.