POOSF (Poseidon Concepts) Gross Margin %: 77.94% (As of Sep. 2012)

What is Poseidon Concepts Gross Margin %?

Poseidon Concepts POOSF -90.00% Gross Margin % is 77.94% as of Sep. 2012.

Gross Margin % is calculated as gross profit divided by its revenue. Poseidon Concepts's Gross Profit for the three months ended in Sep. 2012 was $32.8 Mil. Poseidon Concepts's Revenue for the three months ended in Sep. 2012 was $42.0 Mil. Therefore, Poseidon Concepts's Gross Margin % for the quarter that ended in Sep. 2012 was 77.94%.

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

POOSF's Gross Margin % is not ranked ^*
in the Oil & Gas industry.
Industry Median: 25.7
* Ranked among companies with meaningful Gross Margin % only.

Poseidon Concepts had a gross margin of 77.94% for the quarter that ended in Sep. 2012 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Poseidon Concepts was 0.00% per year.

Poseidon Concepts (OTCPK:POOSF) 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

Poseidon Concepts had a gross margin of 77.94% for the quarter that ended in Sep. 2012 => 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.

Poseidon Concepts Gross Margin % Related Terms

Poseidon Concepts Gross Margin % Historical Data

* Premium members only.

The historical data trend for Poseidon Concepts'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.

Poseidon Concepts Gross Margin % Chart

Poseidon Concepts Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Gross Margin %

Get a 7-Day Free Trial

73.05

68.19

66.09

88.90

87.78

Poseidon Concepts Quarterly Data
	Dec05	Dec06	Dec07	Dec08	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12
Gross Margin %	Get a 7-Day Free Trial											88.91	90.31	90.97	93.93	77.94

POOSF vs FLSS, BRS, GWTI: Gross Margin % Comparison

For the Oil & Gas Equipment & Services subindustry, Poseidon Concepts'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.

Poseidon Concepts Gross Margin % vs Oil & Gas Industry

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

* The bar in red indicates where Poseidon Concepts's Gross Margin % falls into.

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Poseidon Concepts Gross Margin % Calculation

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

Poseidon Concepts's Gross Margin for the fiscal year that ended in Dec. 2011 is calculated as

Gross Margin % (A: Dec. 2011 )	=	Gross Profit (A: Dec. 2011 )	/	Revenue (A: Dec. 2011 )
	=	67.6	/	76.958
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(76.958 - 9.402)	/	76.958
	=	87.78 %

Poseidon Concepts's Gross Margin for the quarter that ended in Sep. 2012 is calculated as

Gross Margin % (Q: Sep. 2012 )	=	Gross Profit (Q: Sep. 2012 )	/	Revenue (Q: Sep. 2012 )
	=	32.8	/	42.028
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(42.028 - 9.27)	/	42.028
	=	77.94 %

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.

Frequently Asked Questions Learn more about Gross Margin % →

What does a Gross Margin % of 77.94% mean?

Poseidon Concepts (POOSF) has a Gross Margin % of 77.94% as of Sep. 2012. Gross margin is the ratio of total gross profit to net sales. View historical data on Poseidon Concepts and its competitors.

Is Poseidon Concepts' Gross Margin % too high?

Poseidon Concepts' current Gross Margin % is 77.94%. The Oil & Gas industry median Gross Margin % is 25.70. Poseidon Concepts' value of 77.94% is 203.3% above this industry median.

How does Poseidon Concepts' Gross Margin % compare to FLSS and BRS?

Poseidon Concepts' Gross Margin % of 77.94% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.70. Poseidon Concepts' value of 77.94% is 203.3% 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 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. Poseidon Concepts's current Gross Margin % of 77.94% is 203.3% 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 Poseidon Concepts 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. Poseidon Concepts's current Gross Margin % is 77.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Poseidon Concepts stock overvalued right now?

Poseidon Concepts (POOSF) has a current Gross Margin % of 77.94%. The current Gross Margin % is 77.94% and 203.3% above the Oil & Gas industry median of 25.70. 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 Poseidon Concepts (POOSF), the current Gross Margin % is 77.94% as of Sep. 2012. 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.

Poseidon Concepts Business Description

Industry Energy Oil & Gas

Comparable Companies XKLS:7206 FLSS XKLS:7253 HSTC:PVC TSX:MCB TSXV:MXX XKLS:5078 LSE:GTC BRS GWTI LSE:THAL ISX:MIRA SAEX WAR:PBG ISX:RUIS XKLS:7251 KUW:SENERGY RCON ASX:VMX PROP

Address 645 - 7th Avenue SW, Suite 1200, Calgary, AB, CAN, T2P 4G8

Website http://www.poseidonconcepts.com

Poseidon Concepts Corp is a customer-focused provider of safe fluid handling solutions to the oil and natural gas sector across North America.