Summit Midstream Corp gross margin has been in long-term decline. The average rate of decline per year is -8.6%.
The historical rank and industry rank for Summit Midstream's Gross Margin % or its related term are showing as below:
SMC'
s Gross Margin % Range Over the Past 10 Years
Min: 24.23 Med: 37.85 Max: 45.45
Current: 26.3
During the past 13 years, the highestGross Margin % of Summit Midstream was 45.45%. The lowest was 24.23%. And the median was 37.85%.
SMC's Gross Margin % is ranked worse than 52.71% of 884
companies
in the Oil & Gas industry
Industry Median: 28.41
vs SMC: 26.30
Summit Midstream had a gross margin of 24.95% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Summit Midstream was -8.60% per year.
Summit Midstream Gross Margin % Historical Data
The historical data trend for Summit Midstream'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 Summit Midstream's Gross Margin %
For the Oil & Gas Midstream subindustry, Summit Midstream'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.
Summit Midstream's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Summit Midstream's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Summit Midstream'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.
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
Summit Midstream had a gross margin of 24.95% for the quarter that ended in Dec. 2024 => Competition eroding margins
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.
Summit Midstream Gross Margin % Related Terms
Thank you for viewing the detailed overview of Summit Midstream's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Summit Midstream Corp is a value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets strategically located in unconventional resource basins, shale formations, in the continental U.S. It currently operates natural gas, crude oil and produced water gathering systems in four unconventional resource basins: the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which includes the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the liquids-rich Mesaverde formation as well as the emerging Mancos and Niobrara Shale formations.
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