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Empire PetroleumEP +5.66%41 Gross Margin % is 7.93% as of Mar. 2026, which is 78% below its 10-year median of 35.66. GuruFocus rates EP with a GF Score™ of 41/100 and a GF Value™ of $3.19 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 876 Oil & Gas companies, Empire Petroleum ranks worse than 95.55% 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
Empire Petroleum had a gross margin of 7.93% for the quarter that ended in Mar. 2026 => No sustainable 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.
Empire Petroleum Gross Margin % Related Terms
Empire Petroleum Gross Margin % Historical Data
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The historical data trend for Empire Petroleum'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.
For the Oil & Gas E&P subindustry, Empire Petroleum'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.
Empire Petroleum Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Empire Petroleum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Empire Petroleum'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.
Empire Petroleum (EP) has a Gross Margin % of 7.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Empire Petroleum and its competitors. This is 78% below median its historical median of 35.66. According to the industry distribution chart, Empire Petroleum ranks #837 out of 876 companies in the Oil & Gas industry, placing it in the top 95.5%.
Is Empire Petroleum's Gross Margin % too high?
Empire Petroleum's current Gross Margin % of 7.93% is 78% below median its 10-year median of 35.66. The Oil & Gas industry median Gross Margin % is 26.24. Empire Petroleum's value of 7.93% is 69.8% below this industry median. Based on the distribution chart, Empire Petroleum ranks #837 out of 876 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Empire Petroleum has a GF Score™ of 41/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Empire Petroleum's Gross Margin % compare to BRLL and GLND?
According to the Oil & Gas industry distribution chart, Empire Petroleum ranks #837 out of 876 companies for Gross Margin %. This places Empire Petroleum in the lower half of its industry. The industry median Gross Margin % is 26.24. Empire Petroleum's value of 7.93% is 69.8% below this benchmark. While the company's 10-year median is 35.66 vs. the industry median of 26.24, Empire Petroleum has consistently been below 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 26.24, based on 876 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. Empire Petroleum's current Gross Margin % of 7.93% is 69.8% below 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 Empire Petroleum and its competitors. For the Oil & Gas industry, the median Gross Margin % is 26.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empire Petroleum's current Gross Margin % is 7.93%, which is 78% below median its own 10-year median of 35.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empire Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Empire Petroleum (EP) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.19, compared to a current price of $2.80 — trading 12.2% below its estimated fair value. The current Gross Margin % is 7.93%, which is 78% below median its 10-year median of 35.66 and 69.8% below the Oil & Gas industry median of 26.24. Empire Petroleum's overall GF Score™ is 41/100 with 6 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 Empire Petroleum (EP), the current Gross Margin % is 7.93% 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 Empire Petroleum (EP) Overvalued in 2026?
Based on GuruFocus' analysis, Empire Petroleum stock appears to be undervalued.
The current stock price of $2.80 is trading 12.2% below its estimated GF Value™ of $3.19.
GuruFocus considers Empire Petroleum to be Modestly Undervalued.
Key valuation signals for EP:
Gross Margin %: 7.93% (78% below median its 10-year median of 35.66)
GF Value™: $3.19 vs. price of $2.80 (12.2% below fair value)
Industry Position: 69.8% below the Oil & Gas median (#837 of 876)
No single metric tells the full story. See the EP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Empire Petroleum Corp is a conventional oil and natural gas producer with a main focus in the United States onshore. The company possesses long-life, mature, producing assets with slow decline profiles in the Permian Basin, Bakken region and central Gulf Coast region, in the states of New Mexico, North Dakota, Montana, Louisiana and Texas. It has production from operated and non-operated wells in Lea County in New Mexico, Bottineau, Renville, Burke, and McKenzie Counties in North Dakota, Richland County in Montana, St. Landry, Beauregard Parishes in Louisiana and Houston, Leon and Madison Counties in Texas. The Company operates as one operating segment and one reportable segment which is engaged in the exploration, development, and production of oil, gas, and NGLs.
41GF Score
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