Gross Margin % is calculated as gross profit divided by its revenue. Enerflex's Gross Profit for the
three
months ended in Dec. 2024 was C$199 Mil. Enerflex's Revenue for the
three
months ended in Dec. 2024 was C$799 Mil. Therefore, Enerflex's Gross Margin % for the quarter that ended in Dec. 2024 was 24.96%.
Warning Sign:
Enerflex Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for Enerflex's Gross Margin % or its related term are showing as below:
TSX:EFX'
s Gross Margin % Range Over the Past 10 Years
Min: 18.08 Med: 20.45 Max: 24.5
Current: 20.93
During the past 13 years, the highestGross Margin % of Enerflex was 24.50%. The lowest was 18.08%. And the median was 20.45%.
TSX:EFX's Gross Margin % is ranked worse than 59.44% of 895
companies
in the Oil & Gas industry
Industry Median: 28.51
vs TSX:EFX: 20.93
Enerflex had a gross margin of 24.96% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Enerflex was -2.40% per year.
Enerflex Gross Margin % Historical Data
The historical data trend for Enerflex'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 Enerflex's Gross Margin %
For the Oil & Gas Equipment & Services subindustry, Enerflex'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.
Enerflex's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Enerflex's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Enerflex'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.
Enerflex (TSX:EFX) 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
Enerflex had a gross margin of 24.96% 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.
Enerflex Gross Margin % Related Terms
Thank you for viewing the detailed overview of Enerflex's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Enerflex Ltd engineers, designs, manufactures and provides aftermarket support for equipment, systems, and turnkey facilities to process and move natural gas from the wellhead to the pipeline. The company's focus is gas compression, where it offers a range of applications and gas inlet streams, from low-horsepower/low-pressure applications such as coal seam gas and solution gas vapor recovery units to high-horsepower, centralized field, or processing plant compression. Enerflex operates three business segments: North America, Latin America, and the Eastern Hemisphere. Each regional business segment has three main product lines: Engineered Systems, Aftermarket Services, and Energy Infrastructure. The North American segment earns the majority of the revenue.
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