Enviva (FRA:XV6) Gross Margin %

: 16.35% (As of Sep. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Enviva's Gross Profit for the three months ended in Sep. 2023 was €49 Mil. Enviva's Revenue for the three months ended in Sep. 2023 was €300 Mil. Therefore, Enviva's Gross Margin % for the quarter that ended in Sep. 2023 was 16.35%.

Warning Sign:

Enviva Inc gross margin has been in long-term decline. The average rate of decline per year is -13.1%.

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

FRA:XV6' s Gross Margin % Range Over the Past 10 Years
Min: -3.28 Med: 8.71 Max: 16.54
Current: -3.28

During the past 11 years, the highest Gross Margin % of Enviva was 16.54%. The lowest was -3.28%. And the median was 8.71%.

FRA:XV6's Gross Margin % is ranked worse than
94.7% of 283 companies
in the Forest Products industry
Industry Median: 19.84 vs FRA:XV6: -3.28

Enviva had a gross margin of 16.35% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Enviva was -13.10% per year.

Enviva Gross Margin % Historical Data

The historical data trend for Enviva'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.

Enviva Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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12.10

1.84

8.89

8.45

4.90

Enviva Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															20.92	-34.46	-6.99	3.91	16.35

Competitive Comparison

For the Lumber & Wood Production subindustry, Enviva'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.

Enviva Gross Margin % Distribution

For the Forest Products industry and Basic Materials sector, Enviva's Gross Margin % distribution charts can be found below:

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

Enviva Gross Margin % Calculation

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

Enviva's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	50.6	/	1032.997
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1032.997 - 982.355)	/	1032.997
	=	4.90 %

Enviva's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	49.1	/	300.437
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(300.437 - 251.323)	/	300.437
	=	16.35 %

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.

Enviva (FRA:XV6) 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

Enviva had a gross margin of 16.35% for the quarter that ended in Sep. 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.

Enviva Gross Margin % Related Terms

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Enviva (FRA:XV6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Enviva Inc (FRA:XV6) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

EVA:USA XV6:Germany

Address

7272 Wisconsin Avenue, Suite 1800, Bethesda, MD, USA, 20814

Website

https://www.envivabiomass.com

Enviva Inc develop, construct, acquire, and own and operate, fully contracted wood pellet production plants where the company aggregate a natural resource, wood fiber, and process it into dry, densified, uniform pellets that can be effectively stored and transported around the world. The company sells term, take-or-pay off-take contracts with creditworthy customers in the United Kingdom, the European Union, and Japan, who use pellets to displace coal and other fossil fuels to generate power and heat as part of their efforts to accelerate the energy transition away from conventional energy sources. The company derive a majority of revenues from customers in Europe.

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