Riley Exploration PermianREPX +0.34%86 Gross Margin % is 48.35% as of Mar. 2026, which is 35% above its 10-year median of 35.89. GuruFocus rates REPX with a GF Score™ of 86/100 and a GF Value™ of $32.69 (Fairly Valued). The stock has 4 warning signs investors should review. Among 867 Oil & Gas companies, Riley Exploration Permian ranks better than 73.24% on this metric.
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
Riley Exploration Permian had a gross margin of 48.35% 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.
Riley Exploration Permian Gross Margin % Related Terms
Riley Exploration Permian Gross Margin % Historical Data
* 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, Riley Exploration Permian'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.
Riley Exploration Permian Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Riley Exploration Permian's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Riley Exploration Permian'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.
Riley Exploration Permian (REPX) has a Gross Margin % of 48.35% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Riley Exploration Permian and its competitors. This is 35% above median its historical median of 35.89. According to the industry distribution chart, Riley Exploration Permian ranks #232 out of 867 companies in the Oil & Gas industry, placing it in the top 26.8%.
Is Riley Exploration Permian's Gross Margin % too high?
Riley Exploration Permian's current Gross Margin % of 48.35% is 35% above median its 10-year median of 35.89. The Oil & Gas industry median Gross Margin % is 25.70. Riley Exploration Permian's value of 48.35% is 88.1% above this industry median. Based on the distribution chart, Riley Exploration Permian ranks #232 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Riley Exploration Permian has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Riley Exploration Permian's Gross Margin % compare to VTS and GFR?
According to the Oil & Gas industry distribution chart, Riley Exploration Permian ranks #232 out of 867 companies for Gross Margin %. This puts Riley Exploration Permian in the upper half of its industry. The industry median Gross Margin % is 25.70. Riley Exploration Permian's value of 48.35% is 88.1% above this benchmark. While the company's 10-year median is 35.89 vs. the industry median of 25.70, Riley Exploration Permian 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. Riley Exploration Permian's current Gross Margin % of 48.35% is 88.1% 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 Riley Exploration Permian 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. Riley Exploration Permian's current Gross Margin % is 48.35%, which is 35% above median its own 10-year median of 35.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riley Exploration Permian stock overvalued right now?
Based on GuruFocus' analysis, Riley Exploration Permian (REPX) is currently considered Fairly Valued. The stock's GF Value™ is $32.69, compared to a current price of $32.80 — trading 0.3% above its estimated fair value. The current Gross Margin % is 48.35%, which is 35% above median its 10-year median of 35.89 and 88.1% above the Oil & Gas industry median of 25.70. Riley Exploration Permian's overall GF Score™ is 86/100 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 Riley Exploration Permian (REPX), the current Gross Margin % is 48.35% 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 Riley Exploration Permian (REPX) Overvalued in 2026?
Based on GuruFocus' analysis, Riley Exploration Permian stock appears to be overvalued.
The current stock price of $32.80 is trading 0.3% above its estimated GF Value™ of $32.69.
GuruFocus considers Riley Exploration Permian to be Fairly Valued.
Key valuation signals for REPX:
Gross Margin %: 48.35% (35% above median its 10-year median of 35.89)
GF Value™: $32.69 vs. price of $32.80 (0.3% above fair value)
Industry Position: 88.1% above the Oil & Gas median (#232 of 867)
No single metric tells the full story. See the REPX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Riley Exploration Permian Inc is engaged in the business of exploration for and production of oil and natural gas. The company operations include: The Permian Basin is an oil and natural gas producing area located in West Texas.
86GF Score
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