Gross Margin % is calculated as gross profit divided by its revenue. Vistra's Gross Profit for the
three
months ended in Mar. 2024 was $840 Mil. Vistra's Revenue for the
three
months ended in Mar. 2024 was $3,054 Mil. Therefore, Vistra's Gross Margin % for the quarter that ended in Mar. 2024 was 27.50%.
Warning Sign:
Vistra Corp gross margin has been in long-term decline. The average rate of decline per year is -10.2%.
The historical rank and industry rank for Vistra's Gross Margin % or its related term are showing as below:
VST'
s Gross Margin % Range Over the Past 10 Years
Min: 11.17 Med: 32.54 Max: 40.61
Current: 33.75
During the past 10 years, the highestGross Margin % of Vistra was 40.61%. The lowest was 11.17%. And the median was 32.54%.
Vistra had a gross margin of 27.50% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Vistra was -10.20% per year.
Vistra Gross Margin % Historical Data
The historical data trend for Vistra'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.
For the Utilities - Independent Power Producers subindustry, Vistra'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.
Vistra's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Vistra's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vistra'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.
Vistra (NYSE:VST) 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
Vistra had a gross margin of 27.50% 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.
Vistra Gross Margin % Related Terms
Thank you for viewing the detailed overview of Vistra's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vistra Energy is one of the largest power producers and retail energy providers in the U.S. Excluding the Energy Harbor acquisition, Vistra owns and operates 38 gigawatts of nuclear, coal, natural gas, and solar power generation. Its retail electricity segment serves 4.3 million customers in 20 states. Vistra's retail business serves almost one third of all Texas electricity consumers. Vistra emerged from the Energy Future Holdings bankruptcy as a stand-alone entity in 2016. It acquired Dynegy in 2018 and plans to close the Energy Harbor acquisition in 2023.
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