Desert Mountain EnergyFRA:QM01 -11.81%26 Gross Margin % is 44.66% as of Mar. 2026, which is 786% above its 10-year median of 5.04. GuruFocus rates FRA:QM01 with a GF Score™ of 26/100 and a GF Value™ of €0.06 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 869 Oil & Gas companies, Desert Mountain Energy ranks worse than 68.7% on this metric.
FRA:QM01's Gross Margin % is ranked worse than 68.7% of 869
companies
in the Oil & Gas industry
Industry Median: 25.7
vs FRA:QM01: 14.69
Desert Mountain Energy had a gross margin of 44.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Desert Mountain Energy was 0.00% per year.
Desert Mountain Energy (FRA:QM01) 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
Desert Mountain Energy had a gross margin of 44.66% 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.
Desert Mountain Energy Gross Margin % Related Terms
Desert Mountain Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Desert Mountain Energy'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:QM01 vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Desert Mountain 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.
Desert Mountain Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Desert Mountain Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Desert Mountain 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.
Desert Mountain Energy (FRA:QM01) has a Gross Margin % of 44.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Desert Mountain Energy and its competitors. This is 786% above median its historical median of 5.04. According to the industry distribution chart, Desert Mountain Energy ranks #597 out of 869 companies in the Oil & Gas industry, placing it in the top 68.7%.
Is Desert Mountain Energy's Gross Margin % too high?
Desert Mountain Energy's current Gross Margin % of 44.66% is 786% above median its 10-year median of 5.04. The Oil & Gas industry median Gross Margin % is 25.70. Desert Mountain Energy's value of 44.66% is 73.8% above this industry median. Based on the distribution chart, Desert Mountain Energy ranks #597 out of 869 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Desert Mountain Energy has a GF Score™ of 26/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Desert Mountain Energy's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Desert Mountain Energy ranks #597 out of 869 companies for Gross Margin %. This places Desert Mountain Energy in the lower half of its industry. The industry median Gross Margin % is 25.70. Desert Mountain Energy's value of 44.66% is 73.8% above this benchmark. While the company's 10-year median is 5.04 vs. the industry median of 25.70, Desert Mountain Energy 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 869 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. Desert Mountain Energy's current Gross Margin % of 44.66% is 73.8% 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 Desert Mountain 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. Desert Mountain Energy's current Gross Margin % is 44.66%, which is 786% above median its own 10-year median of 5.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Desert Mountain Energy stock overvalued right now?
Based on GuruFocus' analysis, Desert Mountain Energy (FRA:QM01) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.06, compared to a current price of €0.12 — trading 99.2% above its estimated fair value. The current Gross Margin % is 44.66%, which is 786% above median its 10-year median of 5.04 and 73.8% above the Oil & Gas industry median of 25.70. Desert Mountain Energy's overall GF Score™ is 26/100 with 2 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 Desert Mountain Energy (FRA:QM01), the current Gross Margin % is 44.66% 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 Desert Mountain Energy (FRA:QM01) Overvalued in 2026?
Based on GuruFocus' analysis, Desert Mountain Energy stock appears to be overvalued.
The current stock price of €0.12 is trading 99.2% above its estimated GF Value™ of €0.06.
GuruFocus considers Desert Mountain Energy to be Significantly Overvalued.
Key valuation signals for FRA:QM01:
Gross Margin %: 44.66% (786% above median its 10-year median of 5.04)
GF Value™: €0.06 vs. price of €0.12 (99.2% above fair value)
Industry Position: 73.8% above the Oil & Gas median (#597 of 869)
No single metric tells the full story. See the FRA:QM01 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Desert Mountain Energy Corp is a forward-looking resource company actively engaged in the exploration, development and production of Helium and Rare Earth Gas properties in the U.S. Southwest. Its West Pecos Slope Abo Gas field boasts 188 wells and more than 50 miles of surface collection lines across approximately 120 square miles of continuous mineral claims. In addition, the group owns its mineral leases in Arizona.
26GF Score
Get the complete analysis for FRA:QM01
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:QM01 has been successfully added to your 
