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
Novolipetsk Steel PJSC had a gross margin of 49.22% for the quarter that ended in Dec. 2021 => Durable 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.
Novolipetsk Steel PJSC Gross Margin % Related Terms
Novolipetsk Steel PJSC Gross Margin % Historical Data
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The historical data trend for Novolipetsk Steel PJSC'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.
MIC:NLMK vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Novolipetsk Steel PJSC'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.
Novolipetsk Steel PJSC Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Novolipetsk Steel PJSC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Novolipetsk Steel PJSC'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.
Novolipetsk Steel PJSC (MIC:NLMK) has a Gross Margin % of 49.22% as of Dec. 2021. Gross margin is the ratio of total gross profit to net sales. View historical data on Novolipetsk Steel PJSC and its competitors.
Is Novolipetsk Steel PJSC's Gross Margin % too high?
Novolipetsk Steel PJSC's current Gross Margin % is 49.22%. The Steel industry median Gross Margin % is 12.60. Novolipetsk Steel PJSC's value of 49.22% is 290.6% above this industry median. Overall, Novolipetsk Steel PJSC has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Novolipetsk Steel PJSC's Gross Margin % compare to NUE and STLD?
Novolipetsk Steel PJSC's Gross Margin % of 49.22% can be compared against companies in the Steel industry. The industry median Gross Margin % is 12.60. Novolipetsk Steel PJSC's value of 49.22% is 290.6% above 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 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. Novolipetsk Steel PJSC's current Gross Margin % of 49.22% is 290.6% 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 Novolipetsk Steel PJSC 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. Novolipetsk Steel PJSC's current Gross Margin % is 49.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novolipetsk Steel PJSC stock overvalued right now?
Novolipetsk Steel PJSC (MIC:NLMK) has a current Gross Margin % of 49.22%. The current Gross Margin % is 49.22% and 290.6% above the Steel industry median of 12.60. Novolipetsk Steel PJSC's overall GF Score™ is 17/100. 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 Novolipetsk Steel PJSC (MIC:NLMK), the current Gross Margin % is 49.22% as of Dec. 2021. 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.
Novolipetsk Steel PJSC is a Russia-based steelmaker with production assets located in Russia, Europe, and the United States. The company's metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and off shore wind turbines. The company operates through six segments, namely Mining, Russian flat products, Russian long products, NLMK USA, NLMK DanSteel and Plates Distribution Network, and Investments in NBH. Russian flat products for over half of the company's revenue. Russia, Europe, North America, and the Middle East are the four largest markets for the company.
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