Montrose Environmental Group (Montrose Environmental Group) Gross Margin % : 38.51% (As of Dec. 2023)

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What is Montrose Environmental Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Montrose Environmental Group's Gross Profit for the three months ended in Dec. 2023 was $63.8 Mil. Montrose Environmental Group's Revenue for the three months ended in Dec. 2023 was $165.7 Mil. Therefore, Montrose Environmental Group's Gross Margin % for the quarter that ended in Dec. 2023 was 38.51%.

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

MEG' s Gross Margin % Range Over the Past 10 Years
Min: 28.64 Med: 33.41 Max: 38.5
Current: 38.5

During the past 6 years, the highest Gross Margin % of Montrose Environmental Group was 38.50%. The lowest was 28.64%. And the median was 33.41%.

MEG's Gross Margin % is ranked better than
69.33% of 225 companies
in the Waste Management industry
Industry Median: 28.57 vs MEG: 38.50

Montrose Environmental Group had a gross margin of 38.51% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Montrose Environmental Group was 5.70% per year.

Montrose Environmental Group Gross Margin % Historical Data

The historical data trend for Montrose Environmental Group'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.

Montrose Environmental Group Gross Margin % Chart

Montrose Environmental Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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29.88

34.35

32.46

35.37

38.50

Montrose Environmental Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															34.89	37.89	38.28	39.17	38.51

Competitive Comparison of Montrose Environmental Group's Gross Margin %

For the Waste Management subindustry, Montrose Environmental Group'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.

Montrose Environmental Group's Gross Margin % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Montrose Environmental Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Montrose Environmental Group's Gross Margin % falls into.

Montrose Environmental Group Gross Margin % Calculation

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

Montrose Environmental Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	240.3	/	624.208
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(624.208 - 383.903)	/	624.208
	=	38.50 %

Montrose Environmental Group'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 )
	=	63.8	/	165.742
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(165.742 - 101.919)	/	165.742
	=	38.51 %

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.

Montrose Environmental Group (NYSE:MEG) 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

Montrose Environmental Group had a gross margin of 38.51% for the quarter that ended in Dec. 2023 => 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.

Montrose Environmental Group Gross Margin % Related Terms

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Montrose Environmental Group (Montrose Environmental Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Montrose Environmental Group Inc (NYSE:MEG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

5MO:Germany

Address

5120 Northshore Drive, North Little Rock, AR, USA, 72118

Website

https://www.montrose-env.com

Montrose Environmental Group Inc is an environmental services company. The firm's operating segments are Assessment, Permitting and Response, Measurement and Analysis, and Remediation and Reuse. Through its Assessment, Permitting, and Response segment, the company provides scientific advisory and consulting services to support environmental assessments, environmental emergency response, and environmental audits. Measurement and Analysis include test and analysis of air, water, and soil to determine concentrations of contaminants whereas, the Remediation and Reuse segment provide clients with engineering, design, implementation, operations and maintenance services, to treat contaminated water, remove contaminants from soil or create biogas from food or agricultural waste.

Executives

Allan Dicks	officer: Chief Financial Officer	1 PARK PLAZA, SUITE 1000, IRVINE CA 92614
Janet Risi Field	director	9200 SOUTH DADELAND BOULEVARD, SUITE 800, MIAMI FL 33156
Fernandez De Castro Jose Miguel	director	TURBOCHEF TECHNOLOGIES, INC., SIX CONCOURSE PARKWAY, SUITE 1900, ATLANTA GA 30328
James K Price	director, 10 percent owner	C/O TURBOCHEF TECHNOLOGIES, INC., SUITE 1900, SIX CONCOURSE PARKWAY, ATLANTA GA 30328
J Thomas Presby	director	198 KEELER ROAD, BRIDGEWATER CT 06752
Richard E Perlman	director, 10 percent owner	C/O TURBOCHEF TECHNOLOGIES, INC., SUITE 1900, SIX CONCOURSE PARKWAY, ATLANTA GA 30328
Nasym Afsari	officer: General Counsel and Secretary	1 PARK PLAZA, SUITE 1000, IRVINE CA 92614
Vijay Manthripragada	director, officer: See Remarks	1 PARK PLAZA, SUITE 1000, IRVINE CA 92614
Joshua W. Lemaire	officer: Chief Operating Officer	1 PARK PLAZA, SUITE 1000, IRVINE CA 92614
Partners Ltd	10 percent owner	181 BAY STREET, BROOKFIELD PLACE, SUITE 300, TORONTO A6 M5J2T3
Oaktree Holdings, Ltd.	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital Group, Llc	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Ocm Montrose Holdings, L.p.	10 percent owner	333 S. GRAND AVE., 28TH FLOOR, LOS ANGELES CA 90071
Ocm Montrose Ii Holdings, L.p.	10 percent owner	333 S. GRAND AVE., 28TH FLOOR, LOS ANGELES CA 90071
Jose Revuelta	officer: Chief Strategy Officer	1 PARK PLAZA, SUITE 1000, IRVINE CA 92614