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MP Materials (MEX:MP) Gross Margin % : -21.74% (As of Sep. 2024)


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What is MP Materials Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. MP Materials's Gross Profit for the three months ended in Sep. 2024 was MXN-269 Mil. MP Materials's Revenue for the three months ended in Sep. 2024 was MXN1,239 Mil. Therefore, MP Materials's Gross Margin % for the quarter that ended in Sep. 2024 was -21.74%.


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

MEX:MP' s Gross Margin % Range Over the Past 10 Years
Min: -26.29   Med: 47.34   Max: 79.04
Current: -26.29


During the past 5 years, the highest Gross Margin % of MP Materials was 79.04%. The lowest was -26.29%. And the median was 47.34%.

MEX:MP's Gross Margin % is ranked worse than
93.62% of 690 companies
in the Metals & Mining industry
Industry Median: 20.41 vs MEX:MP: -26.29

MP Materials had a gross margin of -21.74% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

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


MP Materials Gross Margin % Historical Data

The historical data trend for MP Materials'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.

* Premium members only.

MP Materials Gross Margin % Chart

MP Materials Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
7.60 47.34 69.68 79.04 41.44

MP Materials Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.80 -2.44 -10.88 -90.90 -21.74

Competitive Comparison of MP Materials's Gross Margin %

For the Other Industrial Metals & Mining subindustry, MP Materials'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.


MP Materials's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, MP Materials's Gross Margin % distribution charts can be found below:

* The bar in red indicates where MP Materials's Gross Margin % falls into.



MP Materials Gross Margin % Calculation

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

MP Materials's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1782.7 / 4302.038
=(Revenue - Cost of Goods Sold) / Revenue
=(4302.038 - 2519.369) / 4302.038
=41.44 %

MP Materials's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=-269.4 / 1239.052
=(Revenue - Cost of Goods Sold) / Revenue
=(1239.052 - 1508.474) / 1239.052
=-21.74 %

* 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.


MP Materials  (MEX:MP) 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

MP Materials had a gross margin of -21.74% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage


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.


MP Materials Gross Margin % Related Terms

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MP Materials Business Description

Traded in Other Exchanges
Address
1700 S. Pavilion Center Drive, 8th Floor, Las Vegas, NV, USA, 89135
MP Materials Corp is the producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility, the only rare earth mining and processing site of scale in North America.