NACCO Industries Inc gross margin has been in long-term decline. The average rate of decline per year is -12.4%.
The historical rank and industry rank for NACCO Industries's Gross Margin % or its related term are showing as below:
NC'
s Gross Margin % Range Over the Past 10 Years
Min: -7.59 Med: 18.4 Max: 28.07
Current: 12.62
During the past 13 years, the highestGross Margin % of NACCO Industries was 28.07%. The lowest was -7.59%. And the median was 18.40%.
NC's Gross Margin % is ranked worse than 72.13% of 122
companies
in the Other Energy Sources industry
Industry Median: 26.365
vs NC: 12.62
NACCO Industries had a gross margin of 11.75% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NACCO Industries was -12.40% per year.
NACCO Industries Gross Margin % Historical Data
The historical data trend for NACCO Industries'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.
Competitive Comparison of NACCO Industries's Gross Margin %
For the Thermal Coal subindustry, NACCO Industries'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.
NACCO Industries's Gross Margin % Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, NACCO Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NACCO Industries'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.
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
NACCO Industries had a gross margin of 11.75% 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.
NACCO Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of NACCO Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NACCO Industries Inc is a holding company that operates in the mining and natural resource industries. It has three operating segments that are coal mining, North American mining (NA mining), and minerals management. The majority of its revenue is from the coal mining segment. This segment operates surface coal mines under long-term contracts with power generation companies and an activated carbon producer pursuant to a service-based business model. The NA mining segment provides value-add contract mining and services for producers. Minerals management generates income from royalty-based leases by acquiring and promoting oil, gas, and coal mineral interests. The company is diversifying beyond coal mining due to political and economic pressures associated with carbon emissions.
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