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Constellation Energy (FRA:E7S) Gross Margin % : 6.14% (As of Dec. 2023)


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What is Constellation Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Constellation Energy's Gross Profit for the three months ended in Dec. 2023 was €326 Mil. Constellation Energy's Revenue for the three months ended in Dec. 2023 was €5,315 Mil. Therefore, Constellation Energy's Gross Margin % for the quarter that ended in Dec. 2023 was 6.14%.

Warning Sign:

Constellation Energy Corp gross margin has been in long-term decline. The average rate of decline per year is -8.9%.


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

FRA:E7S' s Gross Margin % Range Over the Past 10 Years
Min: 8.74   Med: 15.49   Max: 17.7
Current: 12.98


During the past 6 years, the highest Gross Margin % of Constellation Energy was 17.70%. The lowest was 8.74%. And the median was 15.49%.

FRA:E7S's Gross Margin % is ranked worse than
82.91% of 392 companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.01 vs FRA:E7S: 12.98

Constellation Energy had a gross margin of 6.14% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Constellation Energy was -8.90% per year.


Constellation Energy Gross Margin % Historical Data

The historical data trend for Constellation Energy'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.

Constellation Energy Gross Margin % Chart

Constellation Energy Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 17.70 16.19 14.92 8.74 12.97

Constellation Energy Quarterly Data
Dec18 Dec19 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 3.41 5.34 19.87 22.76 6.14

Competitive Comparison of Constellation Energy's Gross Margin %

For the Utilities - Renewable subindustry, Constellation Energy'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.


Constellation Energy's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Constellation Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Constellation Energy's Gross Margin % falls into.



Constellation Energy Gross Margin % Calculation

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

Constellation Energy'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 )
=2963.7 / 22849.806
=(Revenue - Cost of Goods Sold) / Revenue
=(22849.806 - 19886.062) / 22849.806
=12.97 %

Constellation Energy'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 )
=326.5 / 5314.932
=(Revenue - Cost of Goods Sold) / Revenue
=(5314.932 - 4988.48) / 5314.932
=6.14 %

* 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.


Constellation Energy  (FRA:E7S) 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

Constellation Energy had a gross margin of 6.14% 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.


Constellation Energy Gross Margin % Related Terms

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Constellation Energy (FRA:E7S) Business Description

Traded in Other Exchanges
Address
1310 Point Street, Baltimore, MD, USA, 21231
Constellation Energy Corp offers energy solutions. It provides clean energy and sustainable solutions to homes, businesses, the public sector, community aggregations, and a range of wholesale customers (such as municipalities, cooperatives, and other strategics). The company offers comprehensive energy solutions and a variety of pricing options for electric, natural gas, and renewable energy products for companies of any size.

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