FRA:8H6's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 25.7
vs FRA:8H6: -43.24
Houston American Energy had a gross margin of 32.12% for the quarter that ended in Sep. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Houston American Energy was 0.00% per year.
Houston American Energy (FRA:8H6) 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
Houston American Energy had a gross margin of 32.12% for the quarter that ended in Sep. 2025 => Competition eroding margins
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.
Houston American Energy Gross Margin % Related Terms
Houston American Energy 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.
FRA:8H6 vs PVL, EP, LRDC: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Houston American 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.
Houston American Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Houston American Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Houston American 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.
Houston American Energy (FRA:8H6) has a Gross Margin % of 32.12% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Houston American Energy and its competitors.
Is Houston American Energy's Gross Margin % too high?
Houston American Energy's current Gross Margin % is 32.12%. The Oil & Gas industry median Gross Margin % is 25.70. Houston American Energy's value of 32.12% is 25% above this industry median. Overall, Houston American Energy has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Houston American Energy's Gross Margin % compare to PVL and EP?
Houston American Energy's Gross Margin % of 32.12% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.70. Houston American Energy's value of 32.12% is 25% above this benchmark. 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 871 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. Houston American Energy's current Gross Margin % of 32.12% is 25% 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 Houston American Energy 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. Houston American Energy's current Gross Margin % is 32.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houston American Energy stock overvalued right now?
Houston American Energy (FRA:8H6) has a current Gross Margin % of 32.12%. The stock's GF Value™ is €7.93, compared to a current price of €1.70 — trading 78.6% below its estimated fair value. The current Gross Margin % is 32.12% and 25% above the Oil & Gas industry median of 25.70. Houston American Energy's overall GF Score™ is 36/100 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 Houston American Energy (FRA:8H6), the current Gross Margin % is 32.12% as of Sep. 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 Houston American Energy (FRA:8H6) Overvalued in 2026?
Based on GuruFocus' analysis, Houston American Energy stock appears to be undervalued.
The current stock price of €1.70 is trading 78.6% below its estimated GF Value™ of €7.93.
Key valuation signals for FRA:8H6:
Gross Margin %: 32.12%
GF Value™: €7.93 vs. price of €1.70 (78.6% below fair value)
No single metric tells the full story. See the FRA:8H6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Its properties, and operations, are in the U.S. Permian Basin, the U.S. Gulf Coast region, particularly Louisiana, and the South American country of Colombia. Geographically, the company currently has operations in two geographical areas, the United States, from where it derives maximum revenue, and Colombia.
36GF Score
Get the complete analysis for FRA:8H6
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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