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
Highwater Ethanol LLC had a gross margin of 16.86% for the quarter that ended in Apr. 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.
Highwater Ethanol LLC Gross Margin % Related Terms
Highwater Ethanol LLC Gross Margin % Historical Data
* Premium members only.
The historical data trend for Highwater Ethanol LLC'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.
HEOL vs BDCO, DLXY, FGPR: Gross Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Highwater Ethanol LLC'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.
Highwater Ethanol LLC Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Highwater Ethanol LLC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Highwater Ethanol LLC'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.
Highwater Ethanol LLC (HEOL) has a Gross Margin % of 16.86% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Highwater Ethanol LLC and its competitors. This is 157% above median its historical median of 6.55.
Is Highwater Ethanol LLC's Gross Margin % too high?
Highwater Ethanol LLC's current Gross Margin % of 16.86% is 157% above median its 10-year median of 6.55. The Oil & Gas industry median Gross Margin % is 25.70. Highwater Ethanol LLC's value of 16.86% is 34.4% below this industry median. Overall, Highwater Ethanol LLC has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does Highwater Ethanol LLC's Gross Margin % compare to BDCO and DLXY?
Highwater Ethanol LLC's Gross Margin % of 16.86% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.70. Highwater Ethanol LLC's value of 16.86% is 34.4% below this benchmark. While the company's 10-year median is 6.55 vs. the industry median of 25.70, Highwater Ethanol LLC 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 25.70, based on 867 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. Highwater Ethanol LLC's current Gross Margin % of 16.86% is 34.4% 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 Highwater Ethanol LLC 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. Highwater Ethanol LLC's current Gross Margin % is 16.86%, which is 157% above median its own 10-year median of 6.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highwater Ethanol LLC stock overvalued right now?
Highwater Ethanol LLC (HEOL) has a current Gross Margin % of 16.86%. The stock's GF Value™ is $11,817.74, compared to a current price of $14,901.00 — trading 26.1% above its estimated fair value. The current Gross Margin % is 16.86%, which is 157% above median its 10-year median of 6.55 and 34.4% below the Oil & Gas industry median of 25.70. Highwater Ethanol LLC's overall GF Score™ is 32/100 with 3 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 Highwater Ethanol LLC (HEOL), the current Gross Margin % is 16.86% as of Apr. 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 Highwater Ethanol LLC (HEOL) Overvalued in 2026?
Based on GuruFocus' analysis, Highwater Ethanol LLC stock appears to be overvalued.
The current stock price of $14,901.00 is trading 26.1% above its estimated GF Value™ of $11,817.74.
Key valuation signals for HEOL:
Gross Margin %: 16.86% (157% above median its 10-year median of 6.55)
GF Value™: $11,817.74 vs. price of $14,901.00 (26.1% above fair value)
Industry Position: 34.4% below the Oil & Gas median
No single metric tells the full story. See the HEOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highwater Ethanol LLC is engaged in the production of ethanol and distillers grains at the plant. It focuses on the manufacturing and marketing of fuel-grade ethanol and the co-products of the ethanol production process. Its products include fuel-grade ethanol, distillers grains, and corn oil. The company produces and sells fuel ethanol and co-products of the fuel ethanol production process in the continental United States.
32GF Score
Get the complete analysis for HEOL
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
HEOL has been successfully added to your 
