Snam SpA (MIL:SRG) Gross Margin % : 47.51% (As of Dec. 2023)

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What is Snam SpA Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Snam SpA's Gross Profit for the three months ended in Dec. 2023 was €543 Mil. Snam SpA's Revenue for the three months ended in Dec. 2023 was €1,143 Mil. Therefore, Snam SpA's Gross Margin % for the quarter that ended in Dec. 2023 was 47.51%.

Warning Sign:

Snam SpA gross margin has been in long-term decline. The average rate of decline per year is -3.2%.

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

MIL:SRG' s Gross Margin % Range Over the Past 10 Years
Min: 55.9 Med: 84.19 Max: 90.69
Current: 55.9

During the past 13 years, the highest Gross Margin % of Snam SpA was 90.69%. The lowest was 55.90%. And the median was 84.19%.

MIL:SRG's Gross Margin % is ranked better than
85.86% of 502 companies
in the Utilities - Regulated industry
Industry Median: 29.185 vs MIL:SRG: 55.90

Snam SpA had a gross margin of 47.51% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Snam SpA was -3.20% per year.

Snam SpA Gross Margin % Historical Data

The historical data trend for Snam SpA'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.

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Snam SpA Gross Margin % Chart

Snam SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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90.69

88.45

77.26

74.23

55.90

Snam SpA Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															60.98	68.59	47.30	47.51	78.46

Competitive Comparison of Snam SpA's Gross Margin %

For the Utilities - Regulated Gas subindustry, Snam SpA'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.

Snam SpA's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Snam SpA's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Snam SpA's Gross Margin % falls into.

Snam SpA Gross Margin % Calculation

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

Snam SpA's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	2397	/	4288
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4288 - 1891)	/	4288
	=	55.90 %

Snam SpA's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	543	/	1143
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1143 - 600)	/	1143
	=	47.51 %

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.

Snam SpA (MIL:SRG) 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

Snam SpA had a gross margin of 47.51% for the quarter that ended in Dec. 2023 => 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.

Snam SpA Gross Margin % Related Terms

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Snam SpA (MIL:SRG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Snam SpA (MIL:SRG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SNMRY:USA SRGm:UK 0NQP:UK SNM:Germany SRG:Austria

Address

Piazza Santa Barbara, 7, San Donato Milanese, Milan, ITA, 20097

Website

https://www.snam.it

Snam operates a network of about 38,000 kilometers of natural gas pipelines in Italy and abroad. It also holds 17.1% of European gas storage capacity and 6.5 billion cubic meters of LNG regasification capacity. Snam is investing in hydrogen, biofuels, carbon capture and storage, and energy efficiencies to prepare for the energy transition. Snam became independent from Eni in 2012 after the latter sold its stake to Cassa Depositi e Prestiti, a financial institution controlled by the Ministry of Economy and Finance.