PetroreconcavoBSP:RECV3 +2.10%78 Gross Margin % is 31.65% as of Mar. 2026, which is 11% below its 10-year median of 35.51. GuruFocus rates BSP:RECV3 with a GF Score™ of 78/100 and a GF Value™ of R$16.25 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 869 Oil & Gas companies, Petroreconcavo ranks better than 57.19% on this metric.
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
Petroreconcavo had a gross margin of 31.65% for the quarter that ended in Mar. 2026 => 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.
Petroreconcavo Gross Margin % Related Terms
Petroreconcavo Gross Margin % Historical Data
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The historical data trend for Petroreconcavo'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.
BSP:RECV3 vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Petroreconcavo'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.
Petroreconcavo Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Petroreconcavo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Petroreconcavo'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.
Petroreconcavo (BSP:RECV3) has a Gross Margin % of 31.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Petroreconcavo and its competitors. This is 11% below median its historical median of 35.51. Over the past decade, Petroreconcavo's Gross Margin % has ranged from 25.46 to 48.44. According to the industry distribution chart, Petroreconcavo ranks #372 out of 869 companies in the Oil & Gas industry, placing it in the top 42.8%.
Is Petroreconcavo's Gross Margin % too high?
Petroreconcavo's current Gross Margin % of 31.65% is 11% below median its 10-year median of 35.51. Over the past 10 years, this metric has ranged from a low of 25.46 to a high of 48.44. The Oil & Gas industry median Gross Margin % is 25.78. Petroreconcavo's value of 31.65% is 22.8% above this industry median. Based on the distribution chart, Petroreconcavo ranks #372 out of 869 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Petroreconcavo has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Petroreconcavo's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Petroreconcavo ranks #372 out of 869 companies for Gross Margin %. This puts Petroreconcavo in the upper half of its industry. The industry median Gross Margin % is 25.78. Petroreconcavo's value of 31.65% is 22.8% above this benchmark. Historically, Petroreconcavo's own Gross Margin % has ranged from 25.46 to 48.44 over the past decade. While the company's 10-year median is 35.51 vs. the industry median of 25.78, Petroreconcavo 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 25.78, based on 869 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. Petroreconcavo's current Gross Margin % of 31.65% is 22.8% 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 Petroreconcavo and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petroreconcavo's current Gross Margin % is 31.65%, which is 11% below median its own 10-year median of 35.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petroreconcavo stock overvalued right now?
Based on GuruFocus' analysis, Petroreconcavo (BSP:RECV3) is currently considered Possible Value Trap. The stock's GF Value™ is R$16.25, compared to a current price of R$10.22 — trading 37.1% below its estimated fair value. The current Gross Margin % is 31.65%, which is 11% below median its 10-year median of 35.51 and 22.8% above the Oil & Gas industry median of 25.78. Petroreconcavo's overall GF Score™ is 78/100 with 7 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 Petroreconcavo (BSP:RECV3), the current Gross Margin % is 31.65% 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 Petroreconcavo (BSP:RECV3) Overvalued in 2026?
Based on GuruFocus' analysis, Petroreconcavo stock appears to be undervalued.
The current stock price of R$10.22 is trading 37.1% below its estimated GF Value™ of R$16.25.
GuruFocus considers Petroreconcavo to be Possible Value Trap.
Key valuation signals for BSP:RECV3:
Gross Margin %: 31.65% (11% below median its 10-year median of 35.51)
GF Value™: R$16.25 vs. price of R$10.22 (37.1% below fair value)
Industry Position: 22.8% above the Oil & Gas median (#372 of 869)
No single metric tells the full story. See the BSP:RECV3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petroreconcavo SA is engaged in the operations and production of mature oil and natural gas, and their by-products in Brazil. It is currently the concessionaire of several fields distributed among the states of Bahia, Sergipe, and Rio Grande do Norte, operating in some of them in the consortium modality. The majority of the company's revenue is generated from the sale of oil, and the rest from the sale of gas and its by-products, and the provision of related services.
78GF Score
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