Freehold RoyaltiesFRA:1FH -1.36%77 Gross Margin % is 64.62% as of Mar. 2026, which is 45% above its 10-year median of 44.58. GuruFocus rates FRA:1FH with a GF Score™ of 77/100 and a GF Value™ of €7.79 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 870 Oil & Gas companies, Freehold Royalties ranks better than 88.05% 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
Freehold Royalties had a gross margin of 64.62% 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.
Freehold Royalties Gross Margin % Related Terms
Freehold Royalties Gross Margin % Historical Data
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The historical data trend for Freehold Royalties'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.
FRA:1FH vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Freehold Royalties'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.
Freehold Royalties Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Freehold Royalties's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Freehold Royalties'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.
Freehold Royalties (FRA:1FH) has a Gross Margin % of 64.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Freehold Royalties and its competitors. This is 45% above median its historical median of 44.58. Over the past decade, Freehold Royalties' Gross Margin % has ranged from 11.74 to 71.68. According to the industry distribution chart, Freehold Royalties ranks #104 out of 870 companies in the Oil & Gas industry, placing it in the top 12%.
Is Freehold Royalties' Gross Margin % too high?
Freehold Royalties' current Gross Margin % of 64.62% is 45% above median its 10-year median of 44.58. Over the past 10 years, this metric has ranged from a low of 11.74 to a high of 71.68. The Oil & Gas industry median Gross Margin % is 25.62. Freehold Royalties' value of 64.62% is 152.2% above this industry median. Based on the distribution chart, Freehold Royalties ranks #104 out of 870 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Freehold Royalties has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Freehold Royalties' Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Freehold Royalties ranks #104 out of 870 companies for Gross Margin %. This places Freehold Royalties in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.62. Freehold Royalties' value of 64.62% is 152.2% above this benchmark. Historically, Freehold Royalties' own Gross Margin % has ranged from 11.74 to 71.68 over the past decade. While the company's 10-year median is 44.58 vs. the industry median of 25.62, Freehold Royalties 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 25.62, based on 870 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. Freehold Royalties's current Gross Margin % of 64.62% is 152.2% 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 Freehold Royalties and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freehold Royalties's current Gross Margin % is 64.62%, which is 45% above median its own 10-year median of 44.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freehold Royalties stock overvalued right now?
Based on GuruFocus' analysis, Freehold Royalties (FRA:1FH) is currently considered Modestly Overvalued. The stock's GF Value™ is €7.79, compared to a current price of €9.85 — trading 26.4% above its estimated fair value. The current Gross Margin % is 64.62%, which is 45% above median its 10-year median of 44.58 and 152.2% above the Oil & Gas industry median of 25.62. Freehold Royalties' overall GF Score™ is 77/100 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 Freehold Royalties (FRA:1FH), the current Gross Margin % is 64.62% 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 Freehold Royalties (FRA:1FH) Overvalued in 2026?
Based on GuruFocus' analysis, Freehold Royalties stock appears to be overvalued.
The current stock price of €9.85 is trading 26.4% above its estimated GF Value™ of €7.79.
GuruFocus considers Freehold Royalties to be Modestly Overvalued.
Key valuation signals for FRA:1FH:
Gross Margin %: 64.62% (45% above median its 10-year median of 44.58)
GF Value™: €7.79 vs. price of €9.85 (26.4% above fair value)
Industry Position: 152.2% above the Oil & Gas median (#104 of 870)
No single metric tells the full story. See the FRA:1FH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Freehold Royalties Ltd is in acquiring and managing Oil and Gas royalties. It operates in two segments: Canada, which includes exploration and evaluation assets and the petroleum and natural gas interests in Western Canada; and the United States, which includes petroleum and natural gas interests held in the Permian (Midland and Delaware), Eagle Ford, Haynesville, and Bakken basins located in the states of Texas, New Mexico, and North Dakota. The maximum revenue is generated from the Canada Segment.
77GF Score
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