SPI Energy Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for SPI Energy Co's Gross Margin % or its related term are showing as below:
SPI'
s Gross Margin % Range Over the Past 10 Years
Min: -6.5 Med: 8.23 Max: 13.27
Current: 13.16
During the past 13 years, the highestGross Margin % of SPI Energy Co was 13.27%. The lowest was -6.50%. And the median was 8.23%.
SPI's Gross Margin % is ranked worse than 80.92% of 975
companies
in the Semiconductors industry
Industry Median: 28.41
vs SPI: 13.16
SPI Energy Co had a gross margin of 13.35% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SPI Energy Co was -1.30% per year.
SPI Energy Co Gross Margin % Historical Data
The historical data trend for SPI Energy Co'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 SPI Energy Co's Gross Margin %
For the Solar subindustry, SPI Energy Co'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.
SPI Energy Co's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, SPI Energy Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SPI Energy Co'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.
SPI Energy Co (NAS:SPI) 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
SPI Energy Co had a gross margin of 13.35% for the quarter that ended in Sep. 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.
SPI Energy Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of SPI Energy Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SPI Energy Co (SPI Energy Co) Business Description
SPI Energy Co Ltd offers photovoltaic solutions for business, residential, government, and utility customers and investors. The company provides a range of engineering, procurement, and construction services to third-party project developers. It is also engaged in the development, manufacture, and marketing of various PV modules. It procures PV modules and other equipment for project construction from independent suppliers and contract work to third-party EPC contractors in areas such as logistics, installation, construction, and supervision. The company's geographical segments are the United Kingdom, Australia, United States, Greece, Japan, and Italy, of which the majority of its revenue comes from Australia.
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