Gross Margin % is calculated as gross profit divided by its revenue. FX Energy's Gross Profit for the
three
months ended in Sep. 2015 was $4.16 Mil. FX Energy's Revenue for the
three
months ended in Sep. 2015 was $5.10 Mil. Therefore, FX Energy's Gross Margin % for the quarter that ended in Sep. 2015 was 81.45%.
Warning Sign:
FX Energy Inc gross margin has been in long term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for FX Energy's Gross Margin % or its related term are showing as below:
FXENP.PFD'
s Gross Margin % Range Over the Past 10 Years
Min: -75.16 Med: 85.26 Max: 95.6
Current: 85.11
During the past 13 years, the highestGross Margin % of FX Energy was 95.60%. The lowest was -75.16%. And the median was 85.26%.
FXENP.PFD's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 27.87
vs FXENP.PFD: 85.11
FX Energy had a gross margin of 81.45% for the quarter that ended in Sep. 2015 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for FX Energy was -2.00% per year.
FX Energy Gross Margin % Historical Data
The historical data trend for FX Energy'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 FX Energy's Gross Margin %
For the Oil & Gas E&P subindustry, FX Energy'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.
FX Energy's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, FX Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FX Energy'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.
FX Energy (NAS:FXENP.PFD) 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
FX Energy had a gross margin of 81.45% for the quarter that ended in Sep. 2015 => Durable 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.
FX Energy Gross Margin % Related Terms
Thank you for viewing the detailed overview of FX Energy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
FX Energy Inc was founded in 1989. The Company is an independent oil and gas exploration and production company with principal production, reserves, and exploration in Poland and oil production, oilfield service, and exploration activities in the United States. Company concentrates its exploration efforts in Poland on the Rotliegend sandstones of the Permian Basin. As of December 31, 2013, Company held oil and gas exploration rights in Poland in a number of separately designated project areas encompassing approximately 2.7 million gross acres. In Poland, it has projects involving the exploration and exploitation of oil and gas prospects in partnership with Polskie Górnictwo Naftowe i Gazownictwo or PGNiG, the Polish national oil and gas company, other industry partners, and for its own account. In the United States, it explores for and produces oil from fields in Montana and Nevada, and it have an oilfield services company in northern Montana that performs contract drilling and well-servicing operations. Company operates within two segments of the oil and gas industry: the exploration and production, or E&P, segment in Poland and the United States, and the oilfield services segment in the United States. The Company faces competition from larger oil and gas companies. The Companys oil and gas exploration, development, and production activities in Poland are subject to Polands laws and regulations and its United States operations are subject to governmental risks that may impact its operations.
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