PHX Energy ServicesFRA:7PX +0.82%65 Gross Margin % is 16.51% as of Mar. 2026, which is 7% above its 10-year median of 15.38. GuruFocus rates FRA:7PX with a GF Score™ of 65/100 and a GF Value™ of €5.84 (Fairly Valued). The stock has 5 warning signs investors should review. Among 870 Oil & Gas companies, PHX Energy Services ranks worse than 68.97% on this metric.
The historical rank and industry rank for PHX Energy Services's Gross Margin % or its related term are showing as below:
FRA:7PX'
s Gross Margin % Range Over the Past 10 Years
Min: -16.24 Med: 15.38 Max: 22.87
Current: 14.44
During the past 13 years, the highestGross Margin % of PHX Energy Services was 22.87%. The lowest was -16.24%. And the median was 15.38%.
FRA:7PX's Gross Margin % is ranked worse than 68.97% of 870
companies
in the Oil & Gas industry
Industry Median: 25.62
vs FRA:7PX: 14.44
PHX Energy Services had a gross margin of 16.51% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PHX Energy Services was 1.70% per year.
PHX Energy Services (FRA:7PX) 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
PHX Energy Services had a gross margin of 16.51% 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.
PHX Energy Services Gross Margin % Related Terms
PHX Energy Services Gross Margin % Historical Data
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The historical data trend for PHX Energy Services'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:7PX vs NE, RIG, VAL: Gross Margin % Comparison
For the Oil & Gas Drilling subindustry, PHX Energy Services'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.
PHX Energy Services Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, PHX Energy Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PHX Energy Services'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.
PHX Energy Services (FRA:7PX) has a Gross Margin % of 16.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PHX Energy Services and its competitors. This is near median its historical median of 15.38. According to the industry distribution chart, PHX Energy Services ranks #600 out of 870 companies in the Oil & Gas industry, placing it in the top 69%.
Is PHX Energy Services' Gross Margin % too high?
PHX Energy Services' current Gross Margin % of 16.51% is near median its 10-year median of 15.38. The Oil & Gas industry median Gross Margin % is 25.62. PHX Energy Services' value of 16.51% is 35.6% below this industry median. Based on the distribution chart, PHX Energy Services ranks #600 out of 870 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, PHX Energy Services has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PHX Energy Services' Gross Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, PHX Energy Services ranks #600 out of 870 companies for Gross Margin %. This places PHX Energy Services in the lower half of its industry. The industry median Gross Margin % is 25.62. PHX Energy Services' value of 16.51% is 35.6% below this benchmark. While the company's 10-year median is 15.38 vs. the industry median of 25.62, PHX Energy Services 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 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. PHX Energy Services's current Gross Margin % of 16.51% is 35.6% 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 PHX Energy Services 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. PHX Energy Services's current Gross Margin % is 16.51%, which is near median its own 10-year median of 15.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PHX Energy Services stock overvalued right now?
Based on GuruFocus' analysis, PHX Energy Services (FRA:7PX) is currently considered Fairly Valued. The stock's GF Value™ is €5.84, compared to a current price of €6.15 — trading 5.3% above its estimated fair value. The current Gross Margin % is 16.51%, which is near median its 10-year median of 15.38 and 35.6% below the Oil & Gas industry median of 25.62. PHX Energy Services' overall GF Score™ is 65/100 with 5 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 PHX Energy Services (FRA:7PX), the current Gross Margin % is 16.51% 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 PHX Energy Services (FRA:7PX) Overvalued in 2026?
Based on GuruFocus' analysis, PHX Energy Services stock appears to be overvalued.
The current stock price of €6.15 is trading 5.3% above its estimated GF Value™ of €5.84.
GuruFocus considers PHX Energy Services to be Fairly Valued.
Key valuation signals for FRA:7PX:
Gross Margin %: 16.51% (near median its 10-year median of 15.38)
GF Value™: €5.84 vs. price of €6.15 (5.3% above fair value)
Industry Position: 35.6% below the Oil & Gas median (#600 of 870)
No single metric tells the full story. See the FRA:7PX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PHX Energy Services Corp is an oil and natural gas service company. The firm, through its directional drilling subsidiary entities, provides horizontal and directional drilling services to oil and natural gas exploration and development companies principally in Canada, the United States, and the Middle East regions. The company generates its revenue from Directional drilling services, Motor rental, and Sale of motor equipment and parts. The company derives maximum revenue from Directional drilling services. Geographically, the company generates the majority of its revenue from the United States followed by Canada and others.
65GF Score
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