Karoon EnergyASX:KAR -2.70%59 Gross Margin % is 48.94% as of Dec. 2025, which is 20% below its 10-year median of 61.00. GuruFocus rates ASX:KAR with a GF Score™ of 59/100 and a GF Value™ of A$1.64 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 872 Oil & Gas companies, Karoon Energy ranks better than 72.25% on this metric.
The historical rank and industry rank for Karoon Energy's Gross Margin % or its related term are showing as below:
ASX:KAR'
s Gross Margin % Range Over the Past 10 Years
Min: 42.79 Med: 61 Max: 87.03
Current: 42.79
During the past 13 years, the highestGross Margin % of Karoon Energy was 87.03%. The lowest was 42.79%. And the median was 61.00%.
ASX:KAR's Gross Margin % is ranked better than 72.25% of 872
companies
in the Oil & Gas industry
Industry Median: 25.535
vs ASX:KAR: 42.79
Karoon Energy had a gross margin of 48.94% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Karoon Energy was 0.00% per year.
Karoon Energy (ASX:KAR) 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
Karoon Energy had a gross margin of 48.94% for the quarter that ended in Dec. 2025 => Durable 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.
Karoon Energy Gross Margin % Related Terms
Karoon Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Karoon Energy'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.
ASX:KAR vs COP, EOG, OXY: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Karoon Energy'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.
Karoon Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Karoon Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Karoon Energy'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.
Karoon Energy (ASX:KAR) has a Gross Margin % of 48.94% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Karoon Energy and its competitors. This is 20% below median its historical median of 61.00. Over the past decade, Karoon Energy's Gross Margin % has ranged from 42.79 to 87.03. According to the industry distribution chart, Karoon Energy ranks #242 out of 872 companies in the Oil & Gas industry, placing it in the top 27.8%.
Is Karoon Energy's Gross Margin % too high?
Karoon Energy's current Gross Margin % of 48.94% is 20% below median its 10-year median of 61.00. Over the past 10 years, this metric has ranged from a low of 42.79 to a high of 87.03. The Oil & Gas industry median Gross Margin % is 25.54. Karoon Energy's value of 48.94% is 91.7% above this industry median. Based on the distribution chart, Karoon Energy ranks #242 out of 872 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Karoon Energy has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Karoon Energy's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Karoon Energy ranks #242 out of 872 companies for Gross Margin %. This puts Karoon Energy in the upper half of its industry. The industry median Gross Margin % is 25.54. Karoon Energy's value of 48.94% is 91.7% above this benchmark. Historically, Karoon Energy's own Gross Margin % has ranged from 42.79 to 87.03 over the past decade. While the company's 10-year median is 61.00 vs. the industry median of 25.54, Karoon Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.54, based on 872 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karoon Energy's current Gross Margin % of 48.94% is 91.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Karoon Energy and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karoon Energy's current Gross Margin % is 48.94%, which is 20% below median its own 10-year median of 61.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karoon Energy stock overvalued right now?
Based on GuruFocus' analysis, Karoon Energy (ASX:KAR) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.64, compared to a current price of A$1.26 — trading 23.2% below its estimated fair value. The current Gross Margin % is 48.94%, which is 20% below median its 10-year median of 61.00 and 91.7% above the Oil & Gas industry median of 25.54. Karoon Energy's overall GF Score™ is 59/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Karoon Energy (ASX:KAR), the current Gross Margin % is 48.94% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Karoon Energy (ASX:KAR) Overvalued in 2026?
Based on GuruFocus' analysis, Karoon Energy stock appears to be undervalued.
The current stock price of A$1.26 is trading 23.2% below its estimated GF Value™ of A$1.64.
GuruFocus considers Karoon Energy to be Modestly Undervalued.
Key valuation signals for ASX:KAR:
Gross Margin %: 48.94% (20% below median its 10-year median of 61.00)
GF Value™: A$1.64 vs. price of A$1.26 (23.2% below fair value)
Industry Position: 91.7% above the Oil & Gas median (#242 of 872)
No single metric tells the full story. See the ASX:KAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karoon produces around 8 million barrels of oil equivalent annually from its wholly owned Baúna field in Brazil's offshore Santos Basin and around 3.5 mmboe from 30% owned Who Dat in the US Gulf. The company acquired Baúna from Petrobras in 2020 and steadily increased production via well interventions and new developments. Field life is approaching six years based on proven and probable reserves of 46 million barrels at the end of December 2025, though this excludes a further 140 million barrels in 2C contingent resources that have the potential to increase life further. We credit a life of more than 10 years, assuming conversion of some 2C contingent resources into the reserve category with drilling. There are also prospective untested targets within Karoon's permits.
59GF Score
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