La Francaise de l'Energie (OTCPK:FDENF) 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
La Francaise de l'Energie had a gross margin of 45.87% 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.
La Francaise de l'Energie Gross Margin % Related Terms
La Francaise de l'Energie 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.
For the Oil & Gas E&P subindustry, La Francaise de l'Energie'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.
La Francaise de l'Energie Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, La Francaise de l'Energie's Gross Margin % distribution charts can be found below:
* The bar in red indicates where La Francaise de l'Energie'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.
La Francaise de l'Energie (FDENF) has a Gross Margin % of 45.87% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on La Francaise de l'Energie and its competitors. This is near median its historical median of 46.99. Over the past decade, La Francaise de l'Energie's Gross Margin % has ranged from 9.34 to 78.75. According to the industry distribution chart, La Francaise de l'Energie ranks #216 out of 867 companies in the Oil & Gas industry, placing it in the top 24.9%.
Is La Francaise de l'Energie's Gross Margin % too high?
La Francaise de l'Energie's current Gross Margin % of 45.87% is near median its 10-year median of 46.99. Over the past 10 years, this metric has ranged from a low of 9.34 to a high of 78.75. The Oil & Gas industry median Gross Margin % is 25.70. La Francaise de l'Energie's value of 45.87% is 78.5% above this industry median. Based on the distribution chart, La Francaise de l'Energie ranks #216 out of 867 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, La Francaise de l'Energie has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does La Francaise de l'Energie's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, La Francaise de l'Energie ranks #216 out of 867 companies for Gross Margin %. This places La Francaise de l'Energie in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. La Francaise de l'Energie's value of 45.87% is 78.5% above this benchmark. Historically, La Francaise de l'Energie's own Gross Margin % has ranged from 9.34 to 78.75 over the past decade. While the company's 10-year median is 46.99 vs. the industry median of 25.70, La Francaise de l'Energie 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 25.70, based on 867 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. La Francaise de l'Energie's current Gross Margin % of 45.87% is 78.5% 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 La Francaise de l'Energie and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. La Francaise de l'Energie's current Gross Margin % is 45.87%, which is near median its own 10-year median of 46.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is La Francaise de l'Energie stock overvalued right now?
La Francaise de l'Energie (FDENF) has a current Gross Margin % of 45.87%. The stock's GF Value™ is $38.85, compared to a current price of $44.25 — trading 13.9% above its estimated fair value. The current Gross Margin % is 45.87%, which is near median its 10-year median of 46.99 and 78.5% above the Oil & Gas industry median of 25.70. La Francaise de l'Energie's overall GF Score™ is 85/100 with 8 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 La Francaise de l'Energie (FDENF), the current Gross Margin % is 45.87% 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 La Francaise de l'Energie (FDENF) Overvalued in 2026?
Based on GuruFocus' analysis, La Francaise de l'Energie stock appears to be overvalued.
The current stock price of $44.25 is trading 13.9% above its estimated GF Value™ of $38.85.
Key valuation signals for FDENF:
Gross Margin %: 45.87% (near median its 10-year median of 46.99)
GF Value™: $38.85 vs. price of $44.25 (13.9% above fair value)
Industry Position: 78.5% above the Oil & Gas median (#216 of 867)
No single metric tells the full story. See the FDENF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
La Francaise de l'Energie is a France-based company engaged in the exploration, appraisal, and production of gas resources. The company focuses on coal bed methane gas resources. It operates Lorraine and Nord-Pas de Calais mining areas in France.
85GF Score
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