Gross Margin % is calculated as gross profit divided by its revenue. Petrofac's Gross Profit for the
six
months ended in Jun. 2024 was $2 Mil. Petrofac's Revenue for the
six
months ended in Jun. 2024 was $1,240 Mil. Therefore, Petrofac's Gross Margin % for the quarter that ended in Jun. 2024 was 0.16%.
The historical rank and industry rank for Petrofac's Gross Margin % or its related term are showing as below:
POFCF's Gross Margin % is not ranked *
in the Oil & Gas industry.
Industry Median: 25.7 * Ranked among companies with meaningful Gross Margin % only.
Petrofac had a gross margin of 0.16% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Petrofac was 0.00% per year.
Petrofac (OTCPK:POFCF) 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
Petrofac had a gross margin of 0.16% for the quarter that ended in Jun. 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.
Petrofac Gross Margin % Related Terms
Petrofac Gross Margin % Historical Data
* Premium members only.
The historical data trend for Petrofac'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.
For the Oil & Gas Equipment & Services subindustry, Petrofac'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.
Petrofac Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Petrofac's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Petrofac'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.
Petrofac (POFCF) has a Gross Margin % of 0.16% as of Jun. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Petrofac and its competitors.
Is Petrofac's Gross Margin % too high?
Petrofac's current Gross Margin % is 0.16%. The Oil & Gas industry median Gross Margin % is 25.70. Petrofac's value of 0.16% is 99.4% below this industry median. Overall, Petrofac has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Petrofac's Gross Margin % compare to SLB and BKR?
Petrofac's Gross Margin % of 0.16% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.70. Petrofac's value of 0.16% is 99.4% below 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 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. Petrofac's current Gross Margin % of 0.16% is 99.4% below 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 Petrofac and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petrofac's current Gross Margin % is 0.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petrofac stock overvalued right now?
Petrofac (POFCF) has a current Gross Margin % of 0.16%. The current Gross Margin % is 0.16% and 99.4% below the Oil & Gas industry median of 25.70. Petrofac's overall GF Score™ is 12/100. 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 Petrofac (POFCF), the current Gross Margin % is 0.16% as of Jun. 2024. 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.
Petrofac Ltd provides engineering and construction services to the oil and gas production and processing industry. It designs, builds, operates, and maintains oil and gas facilities. The operating segments of the company include Engineering and Construction, Asset solutions, and Integrated Energy Services. It derives the majority of its revenue from the Asset Solutions segment which mainly includes reimbursable engineering and production services activities to the oil and gas industry. Geographically, the company derives maximum revenue from the United Kingdom and the rest from Algeria, Lithuania, Malaysia, the United States of America, Oman, and various other countries.
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