Archaea Energy (Archaea Energy) Gross Margin % : 18.52% (As of Sep. 2022)

View and export this data going back to 2021. Start your Free Trial

What is Archaea Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Archaea Energy's Gross Profit for the three months ended in Sep. 2022 was $18.9 Mil. Archaea Energy's Revenue for the three months ended in Sep. 2022 was $102.3 Mil. Therefore, Archaea Energy's Gross Margin % for the quarter that ended in Sep. 2022 was 18.52%.

The historical rank and industry rank for Archaea Energy's Gross Margin % or its related term are showing as below:

LFG' s Gross Margin % Range Over the Past 10 Years
Min: 15.17 Med: 20.11 Max: 25.05
Current: 19.01

During the past 4 years, the highest Gross Margin % of Archaea Energy was 25.05%. The lowest was 15.17%. And the median was 20.11%.

LFG's Gross Margin % is not ranked
in the Utilities - Independent Power Producers industry.
Industry Median: 35.285 vs LFG: 19.01

Archaea Energy had a gross margin of 18.52% for the quarter that ended in Sep. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Archaea Energy was 0.00% per year.

Archaea Energy Gross Margin % Historical Data

The historical data trend for Archaea 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.

* Premium members only.

Archaea Energy Gross Margin % Chart

Archaea Energy Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Gross Margin %

25.05

15.17

Archaea Energy Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Gross Margin %	Get a 7-Day Free Trial							-12.34	22.29	21.13	15.72	18.52

Competitive Comparison of Archaea Energy's Gross Margin %

For the Utilities - Renewable subindustry, Archaea 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.

Archaea Energy's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Archaea Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Archaea Energy's Gross Margin % falls into.

Archaea Energy Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Archaea Energy's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )	=	Gross Profit (A: Dec. 2021 )	/	Revenue (A: Dec. 2021 )
	=	11.2	/	73.688
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(73.688 - 62.513)	/	73.688
	=	15.17 %

Archaea Energy's Gross Margin for the quarter that ended in Sep. 2022 is calculated as

Gross Margin % (Q: Sep. 2022 )	=	Gross Profit (Q: Sep. 2022 )	/	Revenue (Q: Sep. 2022 )
	=	18.9	/	102.271
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(102.271 - 83.334)	/	102.271
	=	18.52 %

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.

Archaea Energy (NYSE:LFG) 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

Archaea Energy had a gross margin of 18.52% for the quarter that ended in Sep. 2022 => 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.

Archaea Energy Gross Margin % Related Terms

Thank you for viewing the detailed overview of Archaea Energy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Archaea Energy (Archaea Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Archaea Energy Inc (NYSE:LFG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

4444 Westheimer Road, Suite G450, Houston, TX, USA, 77027

Website

https://www.archaeaenergy.com

Archaea Energy Inc is a renewable natural gas (RNG) producer in the U.S., with an RNG platform developing, constructing, and operating RNG facilities to capture waste emissions and convert them into low-carbon fuel.

Executives

Ares Management Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
United States Power Fund Iii, L.p.	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Edward P. Taibi	officer: GC, EVP Strat Init & Gov Aff	35 EAST 62ND STREET, NEW YORK NY 10065
Brian F Mccarthy	officer: Chief Investment Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Aria Renewable Energy Systems Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Corp	director, 10 percent owner	2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Archaea Energy Llc	10 percent owner	500 TECHNOLOGY DRIVE, SECOND FLOOR, CANONSBURG PA 15317
Shalennial Fund I, L.p.	10 percent owner	102 EAST MAIN STREET, SECOND STORY, CARNEGIE PA 15106
Richard Walton	officer: President	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Nicholas Stork	director, officer: Chief Executive Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Lindsay Ellis	officer: General Counsel and Secretary	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Chad Bellah	officer: Chief Accounting Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Eif Us Power Iv, Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Eif Us Power Iii, Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Scott Parkes	director	C/O ARES MANAGEMENT CORP., 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067