Gemfields (LSE:GEMA) Net Margin %: -27.47% (As of Dec. 2016)


What is Gemfields Net Margin %?

Gemfields LSE:GEMA Net Margin % is -27.47% as of Dec. 2016. The stock has 4 warning signs investors should review.

Net margin is calculated as Net Income divided by its Revenue. Gemfields's Net Income for the six months ended in Dec. 2016 was £-11.23 Mil. Gemfields's Revenue for the six months ended in Dec. 2016 was £40.89 Mil. Therefore, Gemfields's net margin for the quarter that ended in Dec. 2016 was -27.47%.

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

LSE:GEMA' s Net Margin % Range Over the Past 10 Years
Min: -20215.71   Med: 5.5   Max: 143.62
Current: -4.76

LSE:GEMA's Net Margin % is not ranked
in the Metals & Mining industry.
Industry Median: 3.41 vs LSE:GEMA: -4.76

Gemfields  (LSE:GEMA) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.

Gemfields Net Margin % Related Terms

Gemfields Net Margin % Historical Data

* Premium members only.

The historical data trend for Gemfields's Net 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.

Gemfields Net Margin % Chart

Gemfields Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 143.62 -47.09 5.50 2.16 6.16

Gemfields Semi-Annual Data
Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
Net Margin % Get a 7-Day Free Trial 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 15.73 -18.46 3.64 8.55 -27.47

Gemfields Net Margin % Competitor Comparison

For the Other Precious Metals & Mining subindustry, Gemfields's Net Margin %, along with its competitors' market caps and Net 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.

Gemfields Net Margin % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Gemfields's Net Margin % distribution charts can be found below:

* The bar in red indicates where Gemfields's Net Margin % falls into.


Gemfields Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Gemfields's Net Margin for the fiscal year that ended in Jun. 2016 is calculated as

Net Margin=Net Income (A: Jun. 2016 )/Revenue (A: Jun. 2016 )
=8.377/135.971
=6.16 %

Gemfields's Net Margin for the quarter that ended in Dec. 2016 is calculated as

Net Margin=Net Income (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )
=-11.233/40.888
=-27.47 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of -27.47% mean?
Gemfields (LSE:GEMA) has a Net Margin % of -27.47% as of Dec. 2016. Net margin is the ratio of total net income to net sales. View historical data on Gemfields and its competitors.
Is Gemfields' Net Margin % too high?
Gemfields' current Net Margin % is -27.47%.
How does Gemfields' Net Margin % compare to competitors?
Gemfields' Net Margin % of -27.47% can be compared against companies in the Metals & Mining industry. The industry median Net Margin % is 3.41. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Metals & Mining company?
The median Net Margin % among Metals & Mining companies is 3.41, based on 843 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Gemfields and its competitors. For the Metals & Mining industry, the median Net Margin % is 3.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gemfields's current Net Margin % is -27.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemfields stock overvalued right now?
Gemfields (LSE:GEMA) has a current Net Margin % of -27.47%. The current Net Margin % is -27.47%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Gemfields (LSE:GEMA), the current Net Margin % is -27.47% as of Dec. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Gemfields Business Description

Address St Julian’s Avenue, Royal Chambers, PO Box 186, Saint Peter Port, GGY, W1S 2HR
Gemfields PLC is a supplier of colored gemstones specializing in emeralds and amethysts from Zambia and rubies from Mozambique. The company's assets include Kagem emerald mine, Montepuez ruby mine, Kariba amethyst mine, Faberge, and it also has emerald, sapphire and ruby exploration projects at Colombia, Ethiopia, Sri Lanka, and Madagascar. Its segments consist of Zambia, Mozambique, United Kingdom, Faberge, and others. The company earns the majority of the revenue from the sale of rough and cut and polished gemstones as well as wholesale and retail sales of the gemstones and jewelry in the Faberge business.