Gross & Net Profit Margin Overview of Major Energy Stocks – XOM, CVX, BP, COP, OXY

  on Nov 26,2012 Posted in Finance ,Investment Ideas
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Investors can understand gross profit margin as a difference between sales and the cost of goods sold divided by revenue. Gross profit margin shows the percentage of each dollar of a firm’s revenue available after accounting for cost of goods sold. Lowering costs result in higher gross profit margins

Operating margin gauges the proportion of revenue left over after paying operating outlays. Operating profit margin is a key instrument used for efficiency and profitability.

High operating margins shows management’s effectiveness, whereas lowering operating margins can indicate weaknesses in company expansion. Low operating margins may also show where potential cost controls could be applied.

In this article we will discuss gross and operating profit margin of major integrated oil & gas giants. Earlier we discussed high dividend yield paying services sector S&P components.

Exxon Mobil Corporation (NYSE:XOM), U.S. biggest oil and gas company by market capitalization, has market capitalization of 406.19 billion.  The company’s institutional ownership was 50% while its price to earnings ratio was 9.41. PEG ratio, which measures growth also, was 1.48. The oil giant’s net profit margin was 9.64% while operating profit margin was 15.97%. Beta factor for Oil Company was 0.51.

Chevron Corporation (NYSE:CVX) offered 18.96% return on equity while has 11.23% value in Return on Assets. CVX has the market capitalization of 206.42 billion while its P/E ratio of 8.65. Institutional ownership of the oil giant was 65% while its 1.96 billion shares were outstanding. Net profit margin of the corporation was 10.02% while operating profit margin was 18.36%.

BP plc (ADR) (NYSE:BP) has market capitalization of $133.45 billion while its EPS was 5.51. Net profit margin of oil Exploration Company was 4.70 % while its operating profit margin was 7.18%. The company has return on equity ratio of 15.56% while its return on investment ratio was 8.45%. BP offered 6.04% as return on assets.

ConocoPhillips (NYSE:COP) has market capitalization of 68.79 billion while its Price to earnings ratio was 10.20. The company offered EPS of 5.56 while its 1.21 billion shares were outstanding. The 67% stake of company was owned by institutional investors. Operating profit margin was 24.81% while net profit margin was 11.31%.

Occidental Petroleum Corporation (NYSE:OXY) has market capitalization of 61.71 billion while offered P/E ratio of 10.47. The Beta factor, which is used as a measure of a company’s volatility in relation to the market, was 1.18 while the PEG ratio of the company was 1.07. Net profit margin of the company was 22.96% while operating profit margin was 51.33%.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.




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