Petroleo Brasileiro Petrobras (BSP:PETR3) 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
Petroleo Brasileiro Petrobras had a gross margin of 48.19% for the quarter that ended in Mar. 2026 => 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.
Petroleo Brasileiro Petrobras Gross Margin % Related Terms
Petroleo Brasileiro Petrobras Gross Margin % Historical Data
* 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.
Petroleo Brasileiro Petrobras Gross Margin % Chart
For the Oil & Gas Integrated subindustry, Petroleo Brasileiro Petrobras'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.
Petroleo Brasileiro Petrobras Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Petroleo Brasileiro Petrobras's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Petroleo Brasileiro Petrobras'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.
Petroleo Brasileiro Petrobras (BSP:PETR3) has a Gross Margin % of 48.19% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Petroleo Brasileiro Petrobras and its competitors. This is near median its historical median of 46.61. Over the past decade, Petroleo Brasileiro Petrobras' Gross Margin % has ranged from 31.92 to 52.70. According to the industry distribution chart, Petroleo Brasileiro Petrobras ranks #209 out of 872 companies in the Oil & Gas industry, placing it in the top 24%.
Is Petroleo Brasileiro Petrobras' Gross Margin % too high?
Petroleo Brasileiro Petrobras' current Gross Margin % of 48.19% is near median its 10-year median of 46.61. Over the past 10 years, this metric has ranged from a low of 31.92 to a high of 52.70. The Oil & Gas industry median Gross Margin % is 25.54. Petroleo Brasileiro Petrobras' value of 48.19% is 88.7% above this industry median. Based on the distribution chart, Petroleo Brasileiro Petrobras ranks #209 out of 872 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Petroleo Brasileiro Petrobras has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Petroleo Brasileiro Petrobras' Gross Margin % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Petroleo Brasileiro Petrobras ranks #209 out of 872 companies for Gross Margin %. This places Petroleo Brasileiro Petrobras in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.54. Petroleo Brasileiro Petrobras' value of 48.19% is 88.7% above this benchmark. Historically, Petroleo Brasileiro Petrobras' own Gross Margin % has ranged from 31.92 to 52.70 over the past decade. While the company's 10-year median is 46.61 vs. the industry median of 25.54, Petroleo Brasileiro Petrobras 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. Petroleo Brasileiro Petrobras's current Gross Margin % of 48.19% is 88.7% 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 Petroleo Brasileiro Petrobras 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. Petroleo Brasileiro Petrobras's current Gross Margin % is 48.19%, which is near median its own 10-year median of 46.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petroleo Brasileiro Petrobras stock overvalued right now?
Based on GuruFocus' analysis, Petroleo Brasileiro Petrobras (BSP:PETR3) is currently considered Fairly Valued. The stock's GF Value™ is R$38.61, compared to a current price of R$42.25 — trading 9.4% above its estimated fair value. The current Gross Margin % is 48.19%, which is near median its 10-year median of 46.61 and 88.7% above the Oil & Gas industry median of 25.54. Petroleo Brasileiro Petrobras' overall GF Score™ is 71/100 with 3 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 Petroleo Brasileiro Petrobras (BSP:PETR3), the current Gross Margin % is 48.19% as of Mar. 2026. 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 Petroleo Brasileiro Petrobras (BSP:PETR3) Overvalued in 2026?
Based on GuruFocus' analysis, Petroleo Brasileiro Petrobras stock appears to be overvalued.
The current stock price of R$42.25 is trading 9.4% above its estimated GF Value™ of R$38.61.
GuruFocus considers Petroleo Brasileiro Petrobras to be Fairly Valued.
Key valuation signals for BSP:PETR3:
Gross Margin %: 48.19% (near median its 10-year median of 46.61)
GF Value™: R$38.61 vs. price of R$42.25 (9.4% above fair value)
Industry Position: 88.7% above the Oil & Gas median (#209 of 872)
No single metric tells the full story. See the BSP:PETR3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petroleo Brasileiro Petrobras Business Description
Petrobras is a Brazil-based integrated energy company controlled by the Brazilian government. The company focuses on the exploration and production of oil and gas in Brazilian offshore fields. Production in 2025 was 3.0 million barrels of oil equivalent per day (80% oil), and reserves stood at 12.1 billion boe (84% oil). At the end of 2025, Petrobras operated 10 refineries in Brazil with a capacity of 1.8 million barrels per day and distributed refined products and natural gas throughout the country.
71GF Score
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