Nine Energy Service (Nine Energy Service) Gross Margin % : 10.92% (As of Dec. 2023)

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What is Nine Energy Service Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nine Energy Service's Gross Profit for the three months ended in Dec. 2023 was $15.7 Mil. Nine Energy Service's Revenue for the three months ended in Dec. 2023 was $144.1 Mil. Therefore, Nine Energy Service's Gross Margin % for the quarter that ended in Dec. 2023 was 10.92%.

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

NINE' s Gross Margin % Range Over the Past 10 Years
Min: -12.93 Med: 7.9 Max: 16.19
Current: 12.82

During the past 9 years, the highest Gross Margin % of Nine Energy Service was 16.19%. The lowest was -12.93%. And the median was 7.90%.

NINE's Gross Margin % is ranked worse than
71.92% of 926 companies
in the Oil & Gas industry
Industry Median: 27.905 vs NINE: 12.82

Nine Energy Service had a gross margin of 10.92% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nine Energy Service was 0.00% per year.

Nine Energy Service Gross Margin % Historical Data

The historical data trend for Nine Energy Service'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.

Nine Energy Service Gross Margin % Chart

Nine Energy Service Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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11.29

-12.93

-1.03

16.19

12.82

Nine Energy Service Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															17.99	15.90	14.65	9.08	10.92

Competitive Comparison of Nine Energy Service's Gross Margin %

For the Oil & Gas Equipment & Services subindustry, Nine Energy Service'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.

Nine Energy Service's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Nine Energy Service's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Nine Energy Service's Gross Margin % falls into.

Nine Energy Service Gross Margin % Calculation

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

Nine Energy Service'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 )
	=	78.1	/	609.526
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(609.526 - 531.407)	/	609.526
	=	12.82 %

Nine Energy Service's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	15.7	/	144.073
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(144.073 - 128.346)	/	144.073
	=	10.92 %

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.

Nine Energy Service (NYSE:NINE) 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

Nine Energy Service had a gross margin of 10.92% for the quarter that ended in Dec. 2023 => 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.

Nine Energy Service Gross Margin % Related Terms

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Nine Energy Service (Nine Energy Service) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Nine Energy Service Inc (NYSE:NINE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

NEJ:Germany

Address

2001 Kirby Drive, Suite 200, Houston, TX, USA, 77019

Website

https://www.nineenergyservice.com

Nine Energy Service Inc is a North American onshore completion and production services provider. It targets unconventional oil and gas resource development. It operates in one segment, Completion Solutions. The Completion Solutions segment offers cementing services; completion tools, including liner hangers and accessories, frac sleeves, fully composite frac plugs, and specialty open hole float equipment and centralizers and other services. It operates in the US, Canada, and other countries where most of the revenue is generated from the United States.

Executives

David Crombie	officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Theodore R. Moore	officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Ann G Fox	director, officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Guy Sirkes	officer: SVP and CFO	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
S. Brett Luz	officer: Chief Accounting Officer	4400 POST OAK PARKWAY, SUITE 1000, HOUSTON TX 77027
Darryl Keith Willis	director	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Warren Lynn Frazier	10 percent owner	5655 BEAR LANE, SUITE 100, CORPUS CHRISTI TX 78405
Clinton Roeder	officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Scf Gp Llc	10 percent owner	600 TRAVIS STREET, SUITE 6600, HOUSTON TX 77002
Richard S. Woolston	officer: Chief Accounting Officer	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Edward Bruce Morgan	officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Gary L Thomas	director	P O BOX 4362, HOUSTON TX 772104362
Scf-vii(a), G.p., Limited Partnership	10 percent owner	600 TRAVIS, SUITE 6600, HOUSTON TX 77002
Scf-vii(a), L.p.	10 percent owner	600 TRAVIS ST., STE. 6600, HOUSTON TX 77002
Curtis F. Harrell	director	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019