Esfahans Mobarakeh Steel Co (XTEH:FOLD1) Gross Margin % : 28.36% (As of Mar. 2015)

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What is Esfahans Mobarakeh Steel Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Esfahans Mobarakeh Steel Co's Gross Profit for the six months ended in Mar. 2015 was IRR34,605,044 Mil. Esfahans Mobarakeh Steel Co's Revenue for the six months ended in Mar. 2015 was IRR122,040,518 Mil. Therefore, Esfahans Mobarakeh Steel Co's Gross Margin % for the quarter that ended in Mar. 2015 was 28.36%.

The historical rank and industry rank for Esfahans Mobarakeh Steel Co's Gross Margin % or its related term are showing as below:

XTEH:FOLD1's Gross Margin % is not ranked ^*
in the Steel industry.
Industry Median: 13.01
* Ranked among companies with meaningful Gross Margin % only.

Esfahans Mobarakeh Steel Co had a gross margin of 28.36% for the quarter that ended in Mar. 2015 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Esfahans Mobarakeh Steel Co was 0.00% per year.

Esfahans Mobarakeh Steel Co Gross Margin % Historical Data

The historical data trend for Esfahans Mobarakeh Steel 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.

* Premium members only.

Esfahans Mobarakeh Steel Co Gross Margin % Chart

Esfahans Mobarakeh Steel Co Annual Data

Trend

Mar11

Mar12

Mar13

Mar14

Mar15

Gross Margin %

40.30

33.28

37.08

39.50

28.36

Esfahans Mobarakeh Steel Co Semi-Annual Data
	Mar11	Mar12	Mar13	Mar14	Mar15
Gross Margin %	40.30	33.28	37.08	39.50	28.36

Competitive Comparison of Esfahans Mobarakeh Steel Co's Gross Margin %

For the Steel subindustry, Esfahans Mobarakeh Steel 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.

Esfahans Mobarakeh Steel Co's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Esfahans Mobarakeh Steel Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Esfahans Mobarakeh Steel Co's Gross Margin % falls into.

Esfahans Mobarakeh Steel Co Gross Margin % Calculation

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

Esfahans Mobarakeh Steel Co's Gross Margin for the fiscal year that ended in Mar. 2015 is calculated as

Gross Margin % (A: Mar. 2015 )	=	Gross Profit (A: Mar. 2015 )	/	Revenue (A: Mar. 2015 )
	=	34605044	/	122040518
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(122040518 - 87435474)	/	122040518
	=	28.36 %

Esfahans Mobarakeh Steel Co's Gross Margin for the quarter that ended in Mar. 2015 is calculated as

Gross Margin % (Q: Mar. 2015 )	=	Gross Profit (Q: Mar. 2015 )	/	Revenue (Q: Mar. 2015 )
	=	34605044	/	122040518
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(122040518 - 87435474)	/	122040518
	=	28.36 %

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.

Esfahans Mobarakeh Steel Co (XTEH:FOLD1) 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

Esfahans Mobarakeh Steel Co had a gross margin of 28.36% for the quarter that ended in Mar. 2015 => 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.

Esfahans Mobarakeh Steel Co Gross Margin % Related Terms

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Esfahans Mobarakeh Steel Co (XTEH:FOLD1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Esfahans Mobarakeh Steel Co (XTEH:FOLD1) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

Sa'adat Abad Street, P.O.BOX: 161-84815, Azadi Square, Esfahan, IRN, 11131-84881

Website

http://www.msc.ir

Esfahans Mobarakeh Steel Co is an Iran-based company engaged in producing steel in the Middle East and Northern Africa. Its products include hot rolled products, cold rolled products, coated products including galvanized, tinned and pre-painted products. The company's products are used in various industries, such as automotive, construction, household appliances, and packaging. It also exports its products to Belgium, France, Italy, Spain, Qatar, Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, Oman, Jordan, Armenia, and Georgia.

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