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Evolution Petroleum (AMEX:EPM) Gross Margin %

: 19.35% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Evolution Petroleum's Gross Profit for the three months ended in Dec. 2023 was $4.07 Mil. Evolution Petroleum's Revenue for the three months ended in Dec. 2023 was $21.02 Mil. Therefore, Evolution Petroleum's Gross Margin % for the quarter that ended in Dec. 2023 was 19.35%.

Warning Sign:

Evolution Petroleum Corp gross margin has been in long-term decline. The average rate of decline per year is -4.5%.


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

EPM' s Gross Margin % Range Over the Past 10 Years
Min: 33.2   Med: 50.21   Max: 86.29
Current: 33.2


During the past 13 years, the highest Gross Margin % of Evolution Petroleum was 86.29%. The lowest was 33.20%. And the median was 50.21%.

EPM's Gross Margin % is ranked better than
55.2% of 933 companies
in the Oil & Gas industry
Industry Median: 28.83 vs EPM: 33.20

Evolution Petroleum had a gross margin of 19.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Evolution Petroleum was -4.50% per year.


Evolution Petroleum Gross Margin % Historical Data

The historical data trend for Evolution Petroleum'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.

* Premium members only.

Evolution Petroleum Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.77 35.40 34.12 48.42 43.44

Evolution Petroleum Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.07 54.02 20.10 21.63 19.35

Competitive Comparison

For the Oil & Gas E&P subindustry, Evolution Petroleum'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.


Evolution Petroleum Gross Margin % Distribution

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

* The bar in red indicates where Evolution Petroleum's Gross Margin % falls into.



Evolution Petroleum Gross Margin % Calculation

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

Evolution Petroleum's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=55.8 / 128.514
=(Revenue - Cost of Goods Sold) / Revenue
=(128.514 - 72.687) / 128.514
=43.44 %

Evolution Petroleum's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=4.1 / 21.024
=(Revenue - Cost of Goods Sold) / Revenue
=(21.024 - 16.956) / 21.024
=19.35 %

* 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.


Evolution Petroleum  (AMEX:EPM) 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

Evolution Petroleum had a gross margin of 19.35% for the quarter that ended in Dec. 2023 => 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.


Evolution Petroleum Gross Margin % Related Terms

Thank you for viewing the detailed overview of Evolution Petroleum's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Evolution Petroleum (AMEX:EPM) Business Description

Traded in Other Exchanges
N/A
Address
1155 Dairy Ashford Road, Suite 425, Houston, TX, USA, 77079
Evolution Petroleum Corp is an independent oil and gas company operating in the US. It is engaged primarily in the acquisition, exploitation, and development of properties for the production of crude oil and natural gas, onshore in the United States. The company's revenues are primarily generated from its crude oil, natural gas and NGL production from the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field in Wyoming; and the Delhi Field in Northeast Louisiana. The revenue generated by the company includes royalty, mineral and working interests.
Executives
John Mark Bunch officer: COO 1155 DAIRY ASHFORD RD., SUITE 425, HOUSTON TX 77079
Kelly Beatty officer: Principal Accounting Officer 1155 DAIRY ASHFORD RD., SUITE 425, HOUSTON TX 77079
Myra C Bierria director 1155 DAIRY ASHFORD, SUITE 425, HOUSTON TX 77079
Ryan Stash officer: SVP & CFO 1155 DAIRY ASHFORD ROAD, SUITE 425, HOUSTON TX 77079
Roderick A. Schultz officer: Chief Accounting Officer 4621 PINERIDGE STREET, HOUSTON TX 77009
Marjorie Anne Hargrave director 999 18TH STREET, SUITE 1925N, DENVER CO 80202
Jason E. Brown officer: President & CEO 1000 LOUISIANA, SUITE 6700, HOUSTON TX 77002
Marran H. Ogilvie director 599 LEXINGTON AVENUE, NEW YORK NY 10022
David Joe officer: VP, Chief Admin. Officer 2500 CITYWEST BLVD., SUITE 1300, HOUSTON TX 77042
Jvl Advisors, L.l.c. 10 percent owner 10,000 MEMORIAL DRIVE, SUITE 550, HOUSTON TX 77024
Randall D Keys officer: President, CFO & Treasurer 3 HICKORY SHADOWS DR, HOUSTON TX 77055
Peninsula Capital Management Inc director 235 PINE STREET, SUITE 1600, SAN FRANCISCO CA 94104
Kelly William Loyd director 10000 MEMORIAL DRIVE, SUITE 550, HOUSTON TX 77024
William Dozier director 3000 SAGE #1312, HOUSTON TX 77056
Gene G Stoever director 5415 GRAYSTONE LANE, HOUSTON TX 77069