GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Emeren Group Ltd (MEX:SOL N) » Definitions » Gross Margin %

Emeren Group (MEX:SOL N) Gross Margin % : 39.35% (As of Mar. 2025)


View and export this data going back to 2012. Start your Free Trial

What is Emeren Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Emeren Group's Gross Profit for the three months ended in Mar. 2025 was MXN66 Mil. Emeren Group's Revenue for the three months ended in Mar. 2025 was MXN167 Mil. Therefore, Emeren Group's Gross Margin % for the quarter that ended in Mar. 2025 was 39.35%.

Warning Sign:

Emeren Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.2%.


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

MEX:SOL N' s Gross Margin % Range Over the Past 10 Years
Min: 8.98   Med: 24.35   Max: 39.45
Current: 26.87


During the past 13 years, the highest Gross Margin % of Emeren Group was 39.45%. The lowest was 8.98%. And the median was 24.35%.

MEX:SOL N's Gross Margin % is ranked worse than
54.67% of 995 companies
in the Semiconductors industry
Industry Median: 29.02 vs MEX:SOL N: 26.87

Emeren Group had a gross margin of 39.35% for the quarter that ended in Mar. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Emeren Group was -2.20% per year.


Emeren Group Gross Margin % Historical Data

The historical data trend for Emeren Group'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.

Emeren Group Gross Margin % Chart

Emeren Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.70 39.45 25.02 23.68 26.20

Emeren Group Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 29.60 31.21 43.79 13.86 39.35

Competitive Comparison of Emeren Group's Gross Margin %

For the Solar subindustry, Emeren Group'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.


Emeren Group's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Emeren Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Emeren Group's Gross Margin % falls into.


;
;

Emeren Group Gross Margin % Calculation

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

Emeren Group's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=503.1 / 1920.122
=(Revenue - Cost of Goods Sold) / Revenue
=(1920.122 - 1417.041) / 1920.122
=26.20 %

Emeren Group's Gross Margin for the quarter that ended in Mar. 2025 is calculated as


Gross Margin % (Q: Mar. 2025 )=Gross Profit (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=65.7 / 166.816
=(Revenue - Cost of Goods Sold) / Revenue
=(166.816 - 101.166) / 166.816
=39.35 %

* 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.


Emeren Group  (MEX:SOL N) 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

Emeren Group had a gross margin of 39.35% for the quarter that ended in Mar. 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.


Emeren Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Emeren Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Emeren Group Business Description

Traded in Other Exchanges
Address
149 Water Street, Suite 302, Norwalk, CT, USA, 06854
Emeren Group Ltd is a renewable energy producer. Its portfolio consists of solar projects and Independent Power Producer (IPP) assets, and it also has globalised Battery Energy Storage System (BESS) capacity. The group specializes in the solar project lifecycle, development, and from construction to financing. It has three reportable segments; Solar power project development, EPC services, and Electricity generation. Majority of revenue is From Electricity Generation. The company operates in China, USA, Germany, UK, Spain, France, Poland, Italy, Hungary, Luxembourg. Majority of revenue is from Italy.

Emeren Group Headlines

No Headlines