Gross Margin % is calculated as gross profit divided by its revenue. Avangrid's Gross Profit for the
three
months ended in Mar. 2024 was $901 Mil. Avangrid's Revenue for the
three
months ended in Mar. 2024 was $2,417 Mil. Therefore, Avangrid's Gross Margin % for the quarter that ended in Mar. 2024 was 37.28%.
Warning Sign:
Avangrid Inc gross margin has been in long-term decline. The average rate of decline per year is -4.2%.
The historical rank and industry rank for Avangrid's Gross Margin % or its related term are showing as below:
AGR'
s Gross Margin % Range Over the Past 10 Years
Min: 32.75 Med: 39.39 Max: 42.5
Current: 35.64
During the past 13 years, the highestGross Margin % of Avangrid was 42.50%. The lowest was 32.75%. And the median was 39.39%.
AGR's Gross Margin % is ranked better than 63.02% of 503
companies
in the Utilities - Regulated industry
Industry Median: 28.6
vs AGR: 35.64
Avangrid had a gross margin of 37.28% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Avangrid was -4.20% per year.
Avangrid Gross Margin % Historical Data
The historical data trend for Avangrid'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 Avangrid's Gross Margin %
For the Utilities - Regulated Electric subindustry, Avangrid'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.
Avangrid's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Avangrid's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avangrid'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.
Avangrid (NYSE:AGR) 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
Avangrid had a gross margin of 37.28% 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.
Avangrid Gross Margin % Related Terms
Thank you for viewing the detailed overview of Avangrid's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Avangrid operates two business units, Networks and Renewables. Networks operates eight regulated electric and natural gas utilities across New York, Maine, Connecticut, and Massachusetts, serving over 3 million customers. Renewables has historically focused on developing onshore wind projects but is looking to make developments in solar and offshore wind over the next five years. It operates more than 8.6 gigawatts of renewable energy across the U.S. Spanish utility Iberdrola spun off Avangrid's predecessor, Iberdrola USA, in 2015. Iberdrola owns 81.5% of Avangrid.
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