Gross Margin % is calculated as gross profit divided by its revenue. Argan's Gross Profit for the
three
months ended in Jan. 2024 was $23.6 Mil. Argan's Revenue for the
three
months ended in Jan. 2024 was $164.6 Mil. Therefore, Argan's Gross Margin % for the quarter that ended in Jan. 2024 was 14.36%.
The historical rank and industry rank for Argan's Gross Margin % or its related term are showing as below:
AGX'
s Gross Margin % Range Over the Past 10 Years
Min: -2.85 Med: 18.04 Max: 24.07
Current: 14.1
During the past 13 years, the highestGross Margin % of Argan was 24.07%. The lowest was -2.85%. And the median was 18.04%.
AGX's Gross Margin % is ranked worse than 62.65% of 1609
companies
in the Construction industry
Industry Median: 19.08
vs AGX: 14.10
Argan had a gross margin of 14.36% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Argan was 0.00% per year.
Argan Gross Margin % Historical Data
The historical data trend for Argan'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 Engineering & Construction subindustry, Argan'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.
Argan's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Argan's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Argan'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.
Argan (NYSE:AGX) 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
Argan had a gross margin of 14.36% for the quarter that ended in Jan. 2024 => 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.
Argan Gross Margin % Related Terms
Thank you for viewing the detailed overview of Argan's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Argan Inc is a United States-based company that primarily operates in the power industry services segment through its wholly-owned subsidiaries. Gemma Power Systems and affiliates, one of Argan's subsidiaries, contributed almost all Argan's sales. GPS is a contractor that provides a full range of engineering, procurement, and construction services for power-generating projects. GPS' works encompass complete plant design, construction, electrical interconnection, plant testing, and commissioning. Argan also generates a small portion of sales from industrial fabrication and field services, as well as telecommunication infrastructure services. It operates in three segments: Power Services, Industrial Services, and Telecom Services, out of which Power Services derive majority revenue.
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