Max PetroleumLSE:MXP Gross Margin % is 30.58% as of Sep. 2014, which is 0% above its 10-year median of 30.53. The stock has 6 warning signs investors should review.
Max Petroleum PLC gross margin has been in long term decline. The average rate of decline per year is -9.3%.
The historical rank and industry rank for Max Petroleum's Gross Margin % or its related term are showing as below:
LSE:MXP'
s Gross Margin % Range Over the Past 10 Years
Min: 21.46 Med: 30.53 Max: 48.98
Current: 27.22
During the past 9 years, the highestGross Margin % of Max Petroleum was 48.98%. The lowest was 21.46%. And the median was 30.53%.
LSE:MXP's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 25.62
vs LSE:MXP: 27.22
Max Petroleum had a gross margin of 30.58% for the quarter that ended in Sep. 2014 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Max Petroleum was -9.30% per year.
Max Petroleum (LSE:MXP) 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
Max Petroleum had a gross margin of 30.58% for the quarter that ended in Sep. 2014 => 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.
Max Petroleum Gross Margin % Related Terms
Max Petroleum Gross Margin % Historical Data
* Premium members only.
The historical data trend for Max Petroleum'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.
Max Petroleum Gross Margin % Competitor Comparison
For the Oil & Gas E&P subindustry, Max Petroleum'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.
Max Petroleum Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Max Petroleum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Max Petroleum'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.
Max Petroleum (LSE:MXP) has a Gross Margin % of 30.58% as of Sep. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on Max Petroleum and its competitors. This is near median its historical median of 30.53. Over the past decade, Max Petroleum's Gross Margin % has ranged from 21.46 to 48.98.
Is Max Petroleum's Gross Margin % too high?
Max Petroleum's current Gross Margin % of 30.58% is near median its 10-year median of 30.53. Over the past 10 years, this metric has ranged from a low of 21.46 to a high of 48.98. The Oil & Gas industry median Gross Margin % is 25.62. Max Petroleum's value of 30.58% is 19.4% above this industry median.
How does Max Petroleum's Gross Margin % compare to competitors?
Max Petroleum's Gross Margin % of 30.58% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.62. Max Petroleum's value of 30.58% is 19.4% above this benchmark. Historically, Max Petroleum's own Gross Margin % has ranged from 21.46 to 48.98 over the past decade. While the company's 10-year median is 30.53 vs. the industry median of 25.62, Max Petroleum 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 872 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. Max Petroleum's current Gross Margin % of 30.58% is 19.4% 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 Max Petroleum 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. Max Petroleum's current Gross Margin % is 30.58%, which is near median its own 10-year median of 30.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Max Petroleum stock overvalued right now?
Max Petroleum (LSE:MXP) has a current Gross Margin % of 30.58%. The current Gross Margin % is 30.58%, which is near median its 10-year median of 30.53 and 19.4% 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 Max Petroleum (LSE:MXP), the current Gross Margin % is 30.58% as of Sep. 2014. 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.
Max Petroleum Plc is an independent oil and gas exploration and production company. The company is engaged in the business of exploration, development, and production of oil and gas assets within the Republic of Kazakhstan. The group owns the exploration and production rights to the Blocks A&E License, which comprises two onshore blocks extending over 12,455 km2 in the Pre-Caspian Basin in Western Kazakhstan.
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