Ring EnergyREI +2.88%64 Gross Margin % is 38.14% as of Mar. 2026, which is 7% below its 10-year median of 40.96. GuruFocus rates REI with a GF Score™ of 64/100 and a GF Value™ of $1.15 (Fairly Valued). The stock has 4 warning signs investors should review. Among 867 Oil & Gas companies, Ring Energy ranks better than 63.09% on this metric.
The historical rank and industry rank for Ring Energy's Gross Margin % or its related term are showing as below:
REI'
s Gross Margin % Range Over the Past 10 Years
Min: 23.55 Med: 40.96 Max: 63.3
Current: 34.7
During the past 13 years, the highestGross Margin % of Ring Energy was 63.30%. The lowest was 23.55%. And the median was 40.96%.
REI's Gross Margin % is ranked better than 63.09% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs REI: 34.70
Ring Energy had a gross margin of 38.14% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ring Energy was 2.90% per year.
Ring Energy (AMEX:REI) 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
Ring Energy had a gross margin of 38.14% for the quarter that ended in Mar. 2026 => 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.
Ring Energy Gross Margin % Related Terms
Ring Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ring 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.
For the Oil & Gas E&P subindustry, Ring 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.
Ring Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Ring Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ring 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.
Ring Energy (REI) has a Gross Margin % of 38.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ring Energy and its competitors. This is near median its historical median of 40.96. Over the past decade, Ring Energy's Gross Margin % has ranged from 23.55 to 63.30. According to the industry distribution chart, Ring Energy ranks #320 out of 867 companies in the Oil & Gas industry, placing it in the top 36.9%.
Is Ring Energy's Gross Margin % too high?
Ring Energy's current Gross Margin % of 38.14% is near median its 10-year median of 40.96. Over the past 10 years, this metric has ranged from a low of 23.55 to a high of 63.30. The Oil & Gas industry median Gross Margin % is 25.70. Ring Energy's value of 38.14% is 48.4% above this industry median. Based on the distribution chart, Ring Energy ranks #320 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Ring Energy has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ring Energy's Gross Margin % compare to FTW and SHASF?
According to the Oil & Gas industry distribution chart, Ring Energy ranks #320 out of 867 companies for Gross Margin %. This puts Ring Energy in the upper half of its industry. The industry median Gross Margin % is 25.70. Ring Energy's value of 38.14% is 48.4% above this benchmark. Historically, Ring Energy's own Gross Margin % has ranged from 23.55 to 63.30 over the past decade. While the company's 10-year median is 40.96 vs. the industry median of 25.70, Ring 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 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. Ring Energy's current Gross Margin % of 38.14% is 48.4% 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 Ring 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. Ring Energy's current Gross Margin % is 38.14%, which is near median its own 10-year median of 40.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ring Energy stock overvalued right now?
Based on GuruFocus' analysis, Ring Energy (REI) is currently considered Fairly Valued. The stock's GF Value™ is $1.15, compared to a current price of $1.07 — trading 7% below its estimated fair value. The current Gross Margin % is 38.14%, which is near median its 10-year median of 40.96 and 48.4% above the Oil & Gas industry median of 25.70. Ring Energy's overall GF Score™ is 64/100 with 4 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 Ring Energy (REI), the current Gross Margin % is 38.14% 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 Ring Energy (REI) Overvalued in 2026?
Based on GuruFocus' analysis, Ring Energy stock appears to be undervalued.
The current stock price of $1.07 is trading 7% below its estimated GF Value™ of $1.15.
GuruFocus considers Ring Energy to be Fairly Valued.
Key valuation signals for REI:
Gross Margin %: 38.14% (near median its 10-year median of 40.96)
GF Value™: $1.15 vs. price of $1.07 (7% below fair value)
Industry Position: 48.4% above the Oil & Gas median (#320 of 867)
No single metric tells the full story. See the REI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ring Energy Inc is an independent oil and natural gas exploration and production company based in the United States. It is engaged in oil and natural gas development, production, acquisition, and exploration activities, currently focused on the Permian Basin of Texas. The company's drilling operations target the oil and liquids-rich producing formations in the Northwest Shelf and the Central Basin Platform, in the Permian Basin in Texas.
64GF Score
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