Gran Tierra Gross Profit vs. Operating Margin

GTE Stock  CAD 8.93  0.13  1.48%   
Based on the key profitability measurements obtained from Gran Tierra's financial statements, Gran Tierra's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Gran Tierra's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2005-09-30
Previous Quarter
110.1 M
Current Value
95.8 M
Quarterly Volatility
63.5 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 25th of November 2024, Price To Sales Ratio is likely to drop to 0.28. In addition to that, Days Sales Outstanding is likely to drop to 6.73. At this time, Gran Tierra's Income Before Tax is very stable compared to the past year. As of the 25th of November 2024, Income Tax Expense is likely to grow to about 118.1 M, while Operating Income is likely to drop about 99.5 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.680.3453
Way Up
Very volatile
For Gran Tierra profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gran Tierra to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gran Tierra Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gran Tierra's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gran Tierra Energy over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Gran Tierra's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gran Tierra is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gran Tierra's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Gran Tierra Energy Operating Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Gran Tierra's current stock value. Our valuation model uses many indicators to compare Gran Tierra value to that of its competitors to determine the firm's financial worth.
Gran Tierra Energy is rated # 3 in gross profit category among its peers. It is rated # 4 in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Gran Tierra Energy is about  2,065,973,926 . At this time, Gran Tierra's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Gran Tierra by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Gran Tierra's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Gran Operating Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Gran Tierra

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
538.81 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Gran Tierra

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.26 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Gran Operating Margin Comparison

Gran Tierra is currently under evaluation in operating margin category among its peers.

Gran Tierra Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Gran Tierra, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gran Tierra will eventually generate negative long term returns. The profitability progress is the general direction of Gran Tierra's change in net profit over the period of time. It can combine multiple indicators of Gran Tierra, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income168 M99.5 M
Income Before Tax106.2 M111.5 M
Total Other Income Expense Net-14.1 M-14.8 M
Net Loss-6.3 M-6.6 M
Income Tax Expense112.4 M118.1 M
Net Loss-6.3 M-6.6 M
Net Income Applicable To Common Shares159.9 M167.9 M
Interest IncomeM2.1 M
Net Interest Income-53.8 M-56.5 M
Change To Netincome36.5 M34.7 M
Net Loss(0.19)(0.20)
Income Quality(36.26)(34.45)
Net Loss(0.06)(0.06)

Gran Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Gran Tierra. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Gran Tierra position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Gran Tierra's important profitability drivers and their relationship over time.

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When determining whether Gran Tierra Energy is a strong investment it is important to analyze Gran Tierra's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Gran Tierra's future performance. For an informed investment choice regarding Gran Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Stocks Directory module to find actively traded stocks across global markets.
To fully project Gran Tierra's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Gran Tierra Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Gran Tierra's income statement, its balance sheet, and the statement of cash flows.
Potential Gran Tierra investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Gran Tierra investors may work on each financial statement separately, they are all related. The changes in Gran Tierra's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Gran Tierra's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.