The historical rank and industry rank for Eon Electric's Gross Margin % or its related term are showing as below:
NSE:EON's Gross Margin % is not ranked *
in the Industrial Products industry.
Industry Median: 26.83 * Ranked among companies with meaningful Gross Margin % only.
Eon Electric had a gross margin of -353.07% for the quarter that ended in Dec. 2019 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Eon Electric was 0.00% per year.
Eon Electric (NSE:EON) 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
Eon Electric had a gross margin of -353.07% for the quarter that ended in Dec. 2019 => 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.
Eon Electric Gross Margin % Related Terms
Eon Electric Gross Margin % Historical Data
* Premium members only.
The historical data trend for Eon Electric'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.
NSE:EON vs HON, MMM, GE: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Eon Electric'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.
Eon Electric Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eon Electric's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Eon Electric'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.
Eon Electric (NSE:EON) has a Gross Margin % of -353.07% as of Dec. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on Eon Electric and its competitors.
Is Eon Electric's Gross Margin % too high?
Eon Electric's current Gross Margin % is -353.07%. Overall, Eon Electric has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Eon Electric's Gross Margin % compare to HON and MMM?
Eon Electric's Gross Margin % of -353.07% can be compared against companies in the Industrial Products industry. The industry median Gross Margin % is 26.83. 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.83, based on 2,993 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. 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 Eon Electric and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eon Electric's current Gross Margin % is -353.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eon Electric stock overvalued right now?
Eon Electric (NSE:EON) has a current Gross Margin % of -353.07%. The current Gross Margin % is -353.07%. Eon Electric's overall GF Score™ is 4/100. 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 Eon Electric (NSE:EON), the current Gross Margin % is -353.07% as of Dec. 2019. 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.
Eon Electric Ltd manufactures electrical switchgear, lighting equipment, and cables. It engages in the manufacturing and marketing of wires and cables, lighting products and LED Lights. It operates its business through the following segments: Cable and Wires, Lighting, Electrical Consumer Durables, and Others. The Cable and Wires segment includes wires and cables. The Lighting segment includes compact fluorescent lamps, fluorescent tube lights, and luminaires etc. The Electrical Consumer Durables segment includes Fans, Water Heaters etc. The Others segment includes modular switches, wiring accessories, home automation, fans, lithium-ion batteries, mobile phone accessories. Its Lighting segment acts as a core revenue driver for the firm.
4GF Score
Get the complete analysis for NSE:EON
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:EON has been successfully added to your 
