Headwater ExplorationFRA:C6V -2.03%76 Gross Margin % is 58.45% as of Mar. 2026, which is 14% above its 10-year median of 51.30. GuruFocus rates FRA:C6V with a GF Score™ of 76/100 and a GF Value™ of €5.53 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 870 Oil & Gas companies, Headwater Exploration ranks better than 82.07% 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
Headwater Exploration had a gross margin of 58.45% 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.
Headwater Exploration Gross Margin % Related Terms
Headwater Exploration Gross Margin % Historical Data
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The historical data trend for Headwater Exploration'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:C6V vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Headwater Exploration'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.
Headwater Exploration Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Headwater Exploration's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Headwater Exploration'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.
Headwater Exploration (FRA:C6V) has a Gross Margin % of 58.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Headwater Exploration and its competitors. This is 14% above median its historical median of 51.30. Over the past decade, Headwater Exploration's Gross Margin % has ranged from 0.52 to 58.03. According to the industry distribution chart, Headwater Exploration ranks #156 out of 870 companies in the Oil & Gas industry, placing it in the top 17.9%.
Is Headwater Exploration's Gross Margin % too high?
Headwater Exploration's current Gross Margin % of 58.45% is 14% above median its 10-year median of 51.30. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 58.03. The Oil & Gas industry median Gross Margin % is 25.62. Headwater Exploration's value of 58.45% is 128.1% above this industry median. Based on the distribution chart, Headwater Exploration ranks #156 out of 870 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Headwater Exploration has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Headwater Exploration's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Headwater Exploration ranks #156 out of 870 companies for Gross Margin %. This places Headwater Exploration in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.62. Headwater Exploration's value of 58.45% is 128.1% above this benchmark. Historically, Headwater Exploration's own Gross Margin % has ranged from 0.52 to 58.03 over the past decade. While the company's 10-year median is 51.30 vs. the industry median of 25.62, Headwater Exploration 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. Headwater Exploration's current Gross Margin % of 58.45% is 128.1% 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 Headwater Exploration 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. Headwater Exploration's current Gross Margin % is 58.45%, which is 14% above median its own 10-year median of 51.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Headwater Exploration stock overvalued right now?
Based on GuruFocus' analysis, Headwater Exploration (FRA:C6V) is currently considered Significantly Overvalued. The stock's GF Value™ is €5.53, compared to a current price of €7.25 — trading 31.1% above its estimated fair value. The current Gross Margin % is 58.45%, which is 14% above median its 10-year median of 51.30 and 128.1% above the Oil & Gas industry median of 25.62. Headwater Exploration's overall GF Score™ is 76/100 with 1 warning sign 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 Headwater Exploration (FRA:C6V), the current Gross Margin % is 58.45% 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 Headwater Exploration (FRA:C6V) Overvalued in 2026?
Based on GuruFocus' analysis, Headwater Exploration stock appears to be overvalued.
The current stock price of €7.25 is trading 31.1% above its estimated GF Value™ of €5.53.
GuruFocus considers Headwater Exploration to be Significantly Overvalued.
Key valuation signals for FRA:C6V:
Gross Margin %: 58.45% (14% above median its 10-year median of 51.30)
GF Value™: €5.53 vs. price of €7.25 (31.1% above fair value)
Industry Position: 128.1% above the Oil & Gas median (#156 of 870)
No single metric tells the full story. See the FRA:C6V stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Headwater Exploration Inc is a Canadian resource company engaged in the exploration for and development and production of petroleum and natural gas in Canada. The company has high quality oil production, reserves, and lands in the prolific Clearwater play in the Marten Hills, Greater Peavine and Greater Nipisi areas of Alberta as well as low decline natural gas production and reserves in the McCully Field near Sussex, New Brunswick. Its core operating areas are Clearwater fairway, Alberta and McCully Field, New Brunswick.
76GF Score
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