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Epsilon EnergyEPSN +0.71%68 Gross Margin % is 47.20% as of Jun. 2026, which is 6% above its 10-year median of 44.42. GuruFocus rates EPSN with a GF Score™ of 68/100 and a GF Value™ of $8.09 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 879 Oil & Gas companies, Epsilon Energy ranks better than 76% on this metric.
Epsilon Energy (NAS:EPSN) 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
Epsilon Energy had a gross margin of 47.20% for the quarter that ended in Jun. 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.
Epsilon Energy Gross Margin % Related Terms
Epsilon Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Epsilon 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.
For the Oil & Gas E&P subindustry, Epsilon 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.
Epsilon Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Epsilon Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Epsilon 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.
Epsilon Energy (EPSN) has a Gross Margin % of 47.20% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Epsilon Energy and its competitors. This is near median its historical median of 44.42. Over the past decade, Epsilon Energy's Gross Margin % has ranged from 17.61 to 77.34. According to the industry distribution chart, Epsilon Energy ranks #211 out of 879 companies in the Oil & Gas industry, placing it in the top 24%.
Is Epsilon Energy's Gross Margin % too high?
Epsilon Energy's current Gross Margin % of 47.20% is near median its 10-year median of 44.42. Over the past 10 years, this metric has ranged from a low of 17.61 to a high of 77.34. The Oil & Gas industry median Gross Margin % is 26.75. Epsilon Energy's value of 47.20% is 76.4% above this industry median. Based on the distribution chart, Epsilon Energy ranks #211 out of 879 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Epsilon Energy has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Epsilon Energy's Gross Margin % compare to AMPY and PED?
According to the Oil & Gas industry distribution chart, Epsilon Energy ranks #211 out of 879 companies for Gross Margin %. This places Epsilon Energy in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.75. Epsilon Energy's value of 47.20% is 76.4% above this benchmark. Historically, Epsilon Energy's own Gross Margin % has ranged from 17.61 to 77.34 over the past decade. While the company's 10-year median is 44.42 vs. the industry median of 26.75, Epsilon 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 26.75, based on 879 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. Epsilon Energy's current Gross Margin % of 47.20% is 76.4% 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 Epsilon Energy and its competitors. For the Oil & Gas industry, the median Gross Margin % is 26.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Epsilon Energy's current Gross Margin % is 47.20%, which is near median its own 10-year median of 44.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Epsilon Energy stock overvalued right now?
Based on GuruFocus' analysis, Epsilon Energy (EPSN) is currently considered Possible Value Trap. The stock's GF Value™ is $8.09, compared to a current price of $5.68 — trading 29.8% below its estimated fair value. The current Gross Margin % is 47.20%, which is near median its 10-year median of 44.42 and 76.4% above the Oil & Gas industry median of 26.75. Epsilon Energy's overall GF Score™ is 68/100 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 Epsilon Energy (EPSN), the current Gross Margin % is 47.20% as of Jun. 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 Epsilon Energy (EPSN) Overvalued in 2026?
Based on GuruFocus' analysis, Epsilon Energy stock appears to be undervalued.
The current stock price of $5.68 is trading 29.8% below its estimated GF Value™ of $8.09.
GuruFocus considers Epsilon Energy to be Possible Value Trap.
Key valuation signals for EPSN:
Gross Margin %: 47.20% (near median its 10-year median of 44.42)
GF Value™: $8.09 vs. price of $5.68 (29.8% below fair value)
Industry Position: 76.4% above the Oil & Gas median (#211 of 879)
No single metric tells the full story. See the EPSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Epsilon Energy Ltd is a North American on-shore focused independent natural gas and oil company engaged in the acquisition, development, gathering and production of natural gas and oil reserves. Its properties include Appalachian Basin-Pennsylvania, Permian Basin-Texas and New Mexico, Anadarko Basin-Oklahoma, Powder River Basin-Wyoming, Western Canadian Sedimentary Basin-Alberta, Canada. Its segments include The Upstream segment activities include acquisition, development and production of natural gas and oil reserves on properties within the United States and Canada; and The Gas Gathering segment partners with two other companies to operate a natural gas gathering system. The Upstream segment derives the majority of the revenue.
68GF Score
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