The historical rank and industry rank for Petro River Oil's Gross Margin % or its related term are showing as below:
PTRC's Gross Margin % is not ranked *
in the Oil & Gas industry.
Industry Median: 25.7 * Ranked among companies with meaningful Gross Margin % only.
Petro River Oil had a gross margin of 28.41% for the quarter that ended in Oct. 2019 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Petro River Oil was 0.00% per year.
Petro River Oil (OTCPK:PTRC) 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
Petro River Oil had a gross margin of 28.41% for the quarter that ended in Oct. 2019 => 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.
Petro River Oil Gross Margin % Related Terms
Petro River Oil Gross Margin % Historical Data
* Premium members only.
The historical data trend for Petro River 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.
PTRC vs LRDC, COIL, ALTX: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Petro River 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.
Petro River Oil Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Petro River Oil's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Petro River 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.
Petro River Oil (PTRC) has a Gross Margin % of 28.41% as of Oct. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on Petro River Oil and its competitors.
Is Petro River Oil's Gross Margin % too high?
Petro River Oil's current Gross Margin % is 28.41%. The Oil & Gas industry median Gross Margin % is 25.70. Petro River Oil's value of 28.41% is 10.5% above this industry median. Overall, Petro River Oil has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Petro River Oil's Gross Margin % compare to LRDC and COIL?
Petro River Oil's Gross Margin % of 28.41% can be compared against companies in the Oil & Gas industry. The industry median Gross Margin % is 25.70. Petro River Oil's value of 28.41% is 10.5% 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 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. Petro River Oil's current Gross Margin % of 28.41% is 10.5% 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 Petro River Oil 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. Petro River Oil's current Gross Margin % is 28.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petro River Oil stock overvalued right now?
Petro River Oil (PTRC) has a current Gross Margin % of 28.41%. The current Gross Margin % is 28.41% and 10.5% above the Oil & Gas industry median of 25.70. Petro River Oil's overall GF Score™ is 12/100. 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 Petro River Oil (PTRC), the current Gross Margin % is 28.41% as of Oct. 2019. 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.
Petro River Oil Corp is an independent energy company focused on the exploration and development of conventional oil and gas assets. It has diversification across multiple projects, each with low initial capital expenditures and strong risk-reward characteristics. The company's strategy is to identify, acquire and develop conventional oil and gas assets. The company's activities are focused on the North American and European continents.
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