KGHM Polska Miedz SA gross margin has been in long-term decline. The average rate of decline per year is -29%.
The historical rank and industry rank for KGHM Polska Miedz's Gross Margin % or its related term are showing as below:
WAR:KGH'
s Gross Margin % Range Over the Past 10 Years
Min: 1.67 Med: 19.52 Max: 25.32
Current: 1.67
During the past 13 years, the highestGross Margin % of KGHM Polska Miedz was 25.32%. The lowest was 1.67%. And the median was 19.52%.
WAR:KGH's Gross Margin % is ranked worse than 85.53% of 705
companies
in the Metals & Mining industry
Industry Median: 19.4
vs WAR:KGH: 1.67
KGHM Polska Miedz had a gross margin of -24.73% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for KGHM Polska Miedz was -29.00% per year.
KGHM Polska Miedz Gross Margin % Historical Data
The historical data trend for KGHM Polska Miedz'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 KGHM Polska Miedz's Gross Margin %
For the Copper subindustry, KGHM Polska Miedz'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.
KGHM Polska Miedz's Gross Margin % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, KGHM Polska Miedz's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KGHM Polska Miedz'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.
KGHM Polska Miedz (WAR:KGH) 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
KGHM Polska Miedz had a gross margin of -24.73% for the quarter that ended in Dec. 2023 => 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.
KGHM Polska Miedz Gross Margin % Related Terms
Thank you for viewing the detailed overview of KGHM Polska Miedz's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
KGHM Polska Miedz SA engages in copper ore mining and copper production primarily in South-Western Poland. The company also produces precious metals such as silver, which is typically used for coins, jewellery, photography products and industrial purposes. The bulk of group revenue is generated through copper sales, and the remainder is primarily through sales of silver, while a minor portion is generated through the production of gold, salt and casting of light metals. The materials are sold domestically, and exported to Germany, China, the U.S., the United Kingdom and the Czech Republic, among many other European nations. KGHM Polska Miedz SA is also involved in construction and engineering, through its wholly owned subsidiary Bipromet SA.
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