The historical rank and industry rank for SM Energy Co's Gross Margin % or its related term are showing as below:
SM'
s Gross Margin % Range Over the Past 10 Years
Min: -17.62 Med: 23.1 Max: 63.4
Current: 45.86
During the past 13 years, the highestGross Margin % of SM Energy Co was 63.40%. The lowest was -17.62%. And the median was 23.10%.
SM's Gross Margin % is ranked better than 72.88% of 885
companies
in the Oil & Gas industry
Industry Median: 28.51
vs SM: 45.86
SM Energy Co had a gross margin of 43.16% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SM Energy Co was 0.00% per year.
SM Energy Co Gross Margin % Historical Data
The historical data trend for SM Energy Co'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 SM Energy Co's Gross Margin %
For the Oil & Gas E&P subindustry, SM Energy Co'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.
SM Energy Co's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, SM Energy Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SM Energy Co'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.
SM Energy Co (NYSE:SM) 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
SM Energy Co had a gross margin of 43.16% for the quarter that ended in Dec. 2024 => 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.
SM Energy Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of SM Energy Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas, and NGLs in Texas and Utah. Its portfolio is comprised of assets in the Midland Basin of West Texas, the Maverick Basin of South Texas, and the Uinta Basin of northeastern Utah.
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