Renewable Energy Group (Renewable Energy Group) Gross Margin % : 7.24% (As of Mar. 2022)

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What is Renewable Energy Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Renewable Energy Group's Gross Profit for the three months ended in Mar. 2022 was $68 Mil. Renewable Energy Group's Revenue for the three months ended in Mar. 2022 was $936 Mil. Therefore, Renewable Energy Group's Gross Margin % for the quarter that ended in Mar. 2022 was 7.24%.

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

REGI' s Gross Margin % Range Over the Past 10 Years
Min: 3.91 Med: 11.98 Max: 19.58
Current: 9.99

During the past 13 years, the highest Gross Margin % of Renewable Energy Group was 19.58%. The lowest was 3.91%. And the median was 11.98%.

REGI's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 27.82 vs REGI: 9.99

Renewable Energy Group had a gross margin of 7.24% for the quarter that ended in Mar. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Renewable Energy Group was 15.90% per year.

Renewable Energy Group Gross Margin % Historical Data

The historical data trend for Renewable Energy Group'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.

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Renewable Energy Group Gross Margin % Chart

Renewable Energy Group Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Gross Margin %

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3.91

17.12

19.58

12.56

11.40

Renewable Energy Group Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
Gross Margin %	Get a 7-Day Free Trial															13.67	15.13	8.83	9.49	7.24

Competitive Comparison of Renewable Energy Group's Gross Margin %

For the Oil & Gas Refining & Marketing subindustry, Renewable Energy Group'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.

Renewable Energy Group's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Renewable Energy Group's Gross Margin % distribution charts can be found below:

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

Renewable Energy Group Gross Margin % Calculation

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

Renewable Energy Group's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )	=	Gross Profit (A: Dec. 2021 )	/	Revenue (A: Dec. 2021 )
	=	369.9	/	3244.05
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3244.05 - 2874.157)	/	3244.05
	=	11.40 %

Renewable Energy Group's Gross Margin for the quarter that ended in Mar. 2022 is calculated as

Gross Margin % (Q: Mar. 2022 )	=	Gross Profit (Q: Mar. 2022 )	/	Revenue (Q: Mar. 2022 )
	=	67.8	/	935.989
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(935.989 - 868.239)	/	935.989
	=	7.24 %

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.

Renewable Energy Group (NAS:REGI) 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

Renewable Energy Group had a gross margin of 7.24% for the quarter that ended in Mar. 2022 => 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.

Renewable Energy Group Gross Margin % Related Terms

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Renewable Energy Group (Renewable Energy Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Renewable Energy Group Inc (NAS:REGI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

416 South Bell Avenue, Ames, IA, USA, 50010

Website

https://www.regi.com

Renewable Energy Group Inc is a producer and refiner of biofuels in the oil and gas industry. The company's operations include acquiring feedstock, operating biorefineries, and marketing and distributing renewable fuels. Its operating segments include Biomass-based Diesel, Services, and Corporate and other. The majority of the company's revenue comes from the sale of biomass-based diesel. Geographically, it operates in the United States, Germany and Other Foreign countries of which the United States derived maximum revenue. At its biorefineries, natural fats, oils, and greases are converted into biofuels and renewable chemicals.

Executives

Stacey Orlandi	other: SVP, Manufacturing	C/O RENEWABLE ENERGY GROUP, INC. 416 SOUTH BELL AVENUE AMES IA 50010
Eric Bowen	officer: VP, Corp Bus Dev and Legal	C/O RENEWABLE ENERGY GROUP, INC. 416 SOUTH BELL AVENUE AMES IA 50010
Dylan Glenn	director	535 BROAD HOLLOW ROAD, SUITE B51, MELVILLE NY 11747
Niharika Ramdev	director	C/O XL HYBRIDS, INC., 145 NEWTON STREET, BOSTON MA 02135
Todd Samuels	other: Chief Accounting Officer	C/O RENEWABLE ENERGY GROUP, INC. 416 SOUTH BELL AVENUE AMES IA 50010
Chad Stone	officer: Chief Financial Officer	REG NEWCO, INC. 416 S. BELL AVENUE AMES IA 50010
Cynthia J Warner	director, officer: President and CEO	1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Harding Peter John Martin	director	416 S. BELL AVE. AMES IA 50010
Richard Craig Bealmear	officer: Chief Financial Officer	1114 COLFAX STREET EVANSTON IL 60201
Jeffrey Stroburg	director	REG NEWCO, INC. 416 S. BELL AVENUE AMES IA 50010
Christopher D. Sorrells	director	REG NEWCO, INC., 416 S. BELL AVENUE, AMES IA 50010
Todd Allen Robinson	officer: InterimChief Financial Officer	RENEWABLE ENERGY, INC. 416 SOUTH BELL AVENUE AMES IA 50010
Walter Z Berger	director	416 SOUTH BELL AVENUE, AMES IA 50010
Gary Haer	officer: VP, Sales and Marketing	416 SOUTH BELL AVENUE C/O RENEWABLE ENERGY GROUP, INC. AMES IA 50010
Michael M Scharf	director	12312 OLIVE BOULEVARD SUITE 400 ST. LOUIS MO 63141