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Montauk Renewables (Montauk Renewables) Gross Margin % : 45.69% (As of Dec. 2023)


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What is Montauk Renewables Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Montauk Renewables's Gross Profit for the three months ended in Dec. 2023 was $21.4 Mil. Montauk Renewables's Revenue for the three months ended in Dec. 2023 was $46.8 Mil. Therefore, Montauk Renewables's Gross Margin % for the quarter that ended in Dec. 2023 was 45.69%.

Warning Sign:

Montauk Renewables Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.


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

MNTK' s Gross Margin % Range Over the Past 10 Years
Min: 38.49   Med: 46.57   Max: 56.48
Current: 45.9


During the past 6 years, the highest Gross Margin % of Montauk Renewables was 56.48%. The lowest was 38.49%. And the median was 46.57%.

MNTK's Gross Margin % is ranked better than
78.09% of 502 companies
in the Utilities - Regulated industry
Industry Median: 29.235 vs MNTK: 45.90

Montauk Renewables had a gross margin of 45.69% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Montauk Renewables was -1.30% per year.


Montauk Renewables Gross Margin % Historical Data

The historical data trend for Montauk Renewables'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.

Montauk Renewables Gross Margin % Chart

Montauk Renewables Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 44.50 38.49 47.23 50.66 45.90

Montauk Renewables Quarterly Data
Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross 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 50.16 5.42 52.26 53.92 45.69

Competitive Comparison of Montauk Renewables's Gross Margin %

For the Utilities - Diversified subindustry, Montauk Renewables'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.


Montauk Renewables's Gross Margin % Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where Montauk Renewables's Gross Margin % falls into.



Montauk Renewables Gross Margin % Calculation

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

Montauk Renewables'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 )
=80.3 / 174.904
=(Revenue - Cost of Goods Sold) / Revenue
=(174.904 - 94.623) / 174.904
=45.90 %

Montauk Renewables'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 )
=21.4 / 46.807
=(Revenue - Cost of Goods Sold) / Revenue
=(46.807 - 25.421) / 46.807
=45.69 %

* 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.


Montauk Renewables  (NAS:MNTK) 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

Montauk Renewables had a gross margin of 45.69% 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.


Montauk Renewables Gross Margin % Related Terms

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


Montauk Renewables (Montauk Renewables) Business Description

Traded in Other Exchanges
Address
5313 Campbells Run Road, Suite 200, Pittsburgh, PA, USA, 15205
Montauk Renewables Inc is a United States-based renewable energy company. It specializes in the recovery and processing of biogas from landfills and other non-fossil fuel sources for beneficial use as a replacement for fossil fuels. The firm develops, owns, and operates RNG projects that supply renewable fuel into the transportation and electrical power sectors. Montauk operates in three segments: Renewable Natural Gas, Renewable Electricity Generation and Corporate. It generates a majority of its revenue from the Renewable Natural Gas segment.
Executives
Michael Barsch officer: See Remarks 5313 CAMPBELLS RUN ROAD, SUITE 200, PITTSBURGH PA 15205
Sean F Mcclain director, officer: President and CEO C/O MONTAUK RENEWABLES, INC., 5313 CAMPBELLS RUN ROAD, SUITE 200, PITTSBURGH PA 15205
Scott E Hill officer: VP of Business Development C/O MONTAUK RENEWABLES, INC., 680 ANDERSEN DR. FOSTER PL 10 FL 5, PITTSBURGH PA 15220
Jennifer E Cunningham director C/O MONTAUK RENEWABLES, INC., 680 ANDERSEN PL 10, FL 5, PITTSBURGH PA 15220
Sharon R Frank officer: VP Environ. Health & Safety C/O MONTAUK RENEWABLES, INC., 5313 CAMPBELLS RUN ROAD, SUITE 200, PITTSBURGH PA 15205
Yunis Shaik director C/O MONTAUK RENEWABLES, INC., 680 ANDERSEN PL 10, FL 5, PITTSBURGH PA 15220
John Ciroli officer: VP, GC and Secretary C/O MONTAUK RENEWABLES, INC., 5313 CAMPBELLS RUN ROAD, SUITE 200, PITTSBURGH PA 15205
John A Copelyn director C/O MONTAUK RENEWABLES, INC., 680 ANDERSEN DR., FOSTER PL 10, FL 5, PITTSBURGH PA 15220
Van Asdalan Kevin A officer: CFO and Treasurer C/O MONTAUK RENEWABLES, INC., 5313 CAMPBELLS RUN ROAD, SUITE 200, PITTSBURGH PA 15205
James A Shaw officer: Vice President of Operations C/O MONTAUK RENEWABLES, INC., 5313 CAMPBELLS RUN ROAD, SUITE 200, PITTSBURGH PA 15205
Bruce S Raynor director C/O MONTAUK RENEWABLES, INC., 680 ANDERSEN DR., FOSTER PL 10 FL 5, PITTSBURGH PA 15220
Mohamed H Ahmed director C/O MONTAUK RENEWABLES, INC., 680 ANDERSEN DR., FOSTER PL 10, FL 5, PITTSBURGH PA 15220
Michael Alon Jacobson director C/O MONTAUK RENEWABLES, INC., 680 ANDERSEN DR., FOSTER PL 10, FL 5, PITTSBURGH PA 15220
Montauk Holdings Ltd 10 percent owner 5TH FLOOR STERLING STREET, ZONNEBLOEM, CAPE TOWN T3 7925
Govender Theventheran (kevin) G director C/O MONTAUK RENEWABLES, INC., 680 ANDERSEN DR. FOSTER PL 10 FL 5, PITTSBURGH PA 15220

Montauk Renewables (Montauk Renewables) Headlines