Gross Margin % is calculated as gross profit divided by its revenue. Orion's Gross Profit for the
three
months ended in Dec. 2023 was $87 Mil. Orion's Revenue for the
three
months ended in Dec. 2023 was $468 Mil. Therefore, Orion's Gross Margin % for the quarter that ended in Dec. 2023 was 18.65%.
Warning Sign:
Orion SA gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Orion's Gross Margin % or its related term are showing as below:
OEC'
s Gross Margin % Range Over the Past 10 Years
Min: 22.1 Med: 26.06 Max: 32.87
Current: 23.81
During the past 12 years, the highestGross Margin % of Orion was 32.87%. The lowest was 22.10%. And the median was 26.06%.
OEC's Gross Margin % is ranked better than 54.44% of 1510
companies
in the Chemicals industry
Industry Median: 22.315
vs OEC: 23.81
Orion had a gross margin of 18.65% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Orion was -3.50% per year.
Orion Gross Margin % Historical Data
The historical data trend for Orion'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.
For the Specialty Chemicals subindustry, Orion'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.
Orion's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Orion's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Orion'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.
Orion (NYSE:OEC) 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
Orion had a gross margin of 18.65% 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.
Orion Gross Margin % Related Terms
Thank you for viewing the detailed overview of Orion's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Orion SA is a supplier of carbon black, a solid form of carbon produced as powder or pellets. The company's operating segments are Specialty Carbon Black and Rubber Carbon Black. It generates maximum revenue from the Rubber Carbon Black segment. Rubber Carbon Black segment is used in the reinforcement of rubber in tires and mechanical rubber goods. The Specialty Carbon Black segment is used as pigments and performance additives in coatings, polymers, printing, and special applications. Geographically, it derives a majority of its revenue from Germany.
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