Gross Margin % is calculated as gross profit divided by its revenue. ONE Gas's Gross Profit for the
three
months ended in Dec. 2023 was $197 Mil. ONE Gas's Revenue for the
three
months ended in Dec. 2023 was $606 Mil. Therefore, ONE Gas's Gross Margin % for the quarter that ended in Dec. 2023 was 32.49%.
Warning Sign:
ONE Gas Inc gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for ONE Gas's Gross Margin % or its related term are showing as below:
OGS'
s Gross Margin % Range Over the Past 10 Years
Min: 22.34 Med: 31.68 Max: 36.71
Current: 30.74
During the past 13 years, the highestGross Margin % of ONE Gas was 36.71%. The lowest was 22.34%. And the median was 31.68%.
OGS's Gross Margin % is ranked better than 52.88% of 503
companies
in the Utilities - Regulated industry
Industry Median: 28.6
vs OGS: 30.74
ONE Gas had a gross margin of 32.49% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for ONE Gas was -2.70% per year.
ONE Gas Gross Margin % Historical Data
The historical data trend for ONE Gas'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 ONE Gas's Gross Margin %
For the Utilities - Regulated Gas subindustry, ONE Gas'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.
ONE Gas's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ONE Gas's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ONE Gas'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.
ONE Gas (NYSE:OGS) 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
ONE Gas had a gross margin of 32.49% 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.
ONE Gas Gross Margin % Related Terms
Thank you for viewing the detailed overview of ONE Gas's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ONE Gas Inc is a regulated natural gas utility company. It is involved in the distribution and sale of natural gas to residential, commercial, industrial, and transportation consumers through its network of pipelines and service lines. Almost all of the company's revenue is derived from natural gas sales in the states of Oklahoma, Kansas, and Texas. The company controls considerable market shares in Oklahoma and Kansas and is one of the largest natural gas utilities in the U.S.
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