Keltech Energies Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.6%.
The historical rank and industry rank for Keltech Energies's Gross Margin % or its related term are showing as below:
BOM:506528'
s Gross Margin % Range Over the Past 10 Years
Min: 17.75 Med: 31.71 Max: 35.38
Current: 23.54
During the past 13 years, the highestGross Margin % of Keltech Energies was 35.38%. The lowest was 17.75%. And the median was 31.71%.
BOM:506528's Gross Margin % is ranked better than 54.27% of 1511
companies
in the Chemicals industry
Industry Median: 22.24
vs BOM:506528: 23.54
Keltech Energies had a gross margin of 34.24% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Keltech Energies was -12.60% per year.
Keltech Energies Gross Margin % Historical Data
The historical data trend for Keltech Energies'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 Keltech Energies's Gross Margin %
For the Specialty Chemicals subindustry, Keltech Energies'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.
Keltech Energies's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Keltech Energies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Keltech Energies'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.
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
Keltech Energies had a gross margin of 34.24% for the quarter that ended in Mar. 2024 => 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.
Keltech Energies Gross Margin % Related Terms
Thank you for viewing the detailed overview of Keltech Energies's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Keltech Energies (BOM:506528) Business Description
Keltech Energies Ltd is engaged in the manufacture of industrial explosives and the sale of perlite & perlite-based products. The company is a technology provider in the area of low-temperature cryogenic insulation of LNG, Ethylene, Propylene, Butane, Propane, Ethane, LOX, LIN, LAR, Ammonia, Cold boxes and other cryogenic equipment. Key areas of operation include the Manufacture of explosives, cryogenic insulation, perlite filter aid, horticulture products as well as perlite products for the construction, refractory and foundry Industries. The Company has two reportable segments such as Explosives segment which manufactures cartridge explosives, bulk emulsion explosives and Perlite segment which manufactures cryogenic insulation, industrial filter-aid, horticulture products etc.
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