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CHK OilHKSE:00632 -8.13%32 Gross Margin % is 0.54% as of Dec. 2025, which is 31% below its 10-year median of 0.78. GuruFocus rates HKSE:00632 with a GF Score™ of 32/100 and a GF Value™ of HK$0.11 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 868 Oil & Gas companies, CHK Oil ranks worse than 93.78% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. CHK Oil's Gross Profit for the
six
months ended in Dec. 2025 was HK$0.11 Mil. CHK Oil's Revenue for the
six
months ended in Dec. 2025 was HK$20.41 Mil. Therefore, CHK Oil's Gross Margin % for the quarter that ended in Dec. 2025 was 0.54%.
Warning Sign:
CHK Oil Ltd gross margin has been in long-term decline. The average rate of decline per year is -38.7%.
The historical rank and industry rank for CHK Oil's Gross Margin % or its related term are showing as below:
HKSE:00632'
s Gross Margin % Range Over the Past 10 Years
Min: -120.85 Med: 0.78 Max: 6.27
Current: 0.62
During the past 13 years, the highestGross Margin % of CHK Oil was 6.27%. The lowest was -120.85%. And the median was 0.78%.
HKSE:00632's Gross Margin % is ranked worse than 93.78% of 868
companies
in the Oil & Gas industry
Industry Median: 25.955
vs HKSE:00632: 0.62
CHK Oil had a gross margin of 0.54% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CHK Oil was -38.70% per year.
CHK Oil (HKSE:00632) 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
CHK Oil had a gross margin of 0.54% for the quarter that ended in Dec. 2025 => 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.
CHK Oil Gross Margin % Related Terms
CHK Oil Gross Margin % Historical Data
* Premium members only.
The historical data trend for CHK Oil'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.
HKSE:00632 vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, CHK Oil'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.
CHK Oil Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, CHK Oil's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CHK Oil'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.
CHK Oil (HKSE:00632) has a Gross Margin % of 0.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on CHK Oil and its competitors. This is 31% below median its historical median of 0.78. According to the industry distribution chart, CHK Oil ranks #814 out of 868 companies in the Oil & Gas industry, placing it in the top 93.8%.
Is CHK Oil's Gross Margin % too high?
CHK Oil's current Gross Margin % of 0.54% is 31% below median its 10-year median of 0.78. The Oil & Gas industry median Gross Margin % is 25.96. CHK Oil's value of 0.54% is 97.9% below this industry median. Based on the distribution chart, CHK Oil ranks #814 out of 868 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, CHK Oil has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CHK Oil's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, CHK Oil ranks #814 out of 868 companies for Gross Margin %. This places CHK Oil in the lower half of its industry. The industry median Gross Margin % is 25.96. CHK Oil's value of 0.54% is 97.9% below this benchmark. While the company's 10-year median is 0.78 vs. the industry median of 25.96, CHK Oil 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 25.96, based on 868 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. CHK Oil's current Gross Margin % of 0.54% is 97.9% 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 CHK Oil and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CHK Oil's current Gross Margin % is 0.54%, which is 31% below median its own 10-year median of 0.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHK Oil stock overvalued right now?
Based on GuruFocus' analysis, CHK Oil (HKSE:00632) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.11, compared to a current price of HK$0.19 — trading 74.5% above its estimated fair value. The current Gross Margin % is 0.54%, which is 31% below median its 10-year median of 0.78 and 97.9% below the Oil & Gas industry median of 25.96. CHK Oil's overall GF Score™ is 32/100 with 8 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 CHK Oil (HKSE:00632), the current Gross Margin % is 0.54% as of Dec. 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 CHK Oil (HKSE:00632) Overvalued in 2026?
Based on GuruFocus' analysis, CHK Oil stock appears to be overvalued.
The current stock price of HK$0.19 is trading 74.5% above its estimated GF Value™ of HK$0.11.
GuruFocus considers CHK Oil to be Significantly Overvalued.
Key valuation signals for HKSE:00632:
Gross Margin %: 0.54% (31% below median its 10-year median of 0.78)
GF Value™: HK$0.11 vs. price of HK$0.19 (74.5% above fair value)
Industry Position: 97.9% below the Oil & Gas median (#814 of 868)
No single metric tells the full story. See the HKSE:00632 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CHK Oil Ltd is an investment holding company. Along with its subsidiaries, it is engaged in the exploration, development, production, and sales of natural gas and oil through the exploitation of its wholly owned interest in the Utah Gas and Oil Field project in the United States. Additionally, the Group is also involved in the local trade of oil and oil-related products such as crude oil, fuel oil, lubricants, and other oil-related products within China. Its operating segments are: trading of oil and oil-related and other products, which derive maximum revenue; and oil and gas sales. Geographically, the Group generates maximum revenue from the People's Republic of China, followed by the United States of America and Hong Kong.
32GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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