RE RoyaltiesRROYF 38 Gross Margin % is 69.20% as of Mar. 2026, which is 21% below its 10-year median of 87.98. GuruFocus rates RROYF with a GF Score™ of 38/100 and a GF Value™ of $0.20 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, RE Royalties ranks better than 84.86% on this metric.
RE Royalties had a gross margin of 69.20% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for RE Royalties was -1.60% per year.
RE Royalties (OTCPK:RROYF) 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
RE Royalties had a gross margin of 69.20% 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.
RE Royalties Gross Margin % Related Terms
RE Royalties Gross Margin % Historical Data
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The historical data trend for RE Royalties'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 Utilities - Renewable subindustry, RE Royalties'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.
RE Royalties Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, RE Royalties's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RE Royalties'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.
RE Royalties (RROYF) has a Gross Margin % of 69.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on RE Royalties and its competitors. This is 21% below median its historical median of 87.98. Over the past decade, RE Royalties' Gross Margin % has ranged from 72.59 to 96.40. According to the industry distribution chart, RE Royalties ranks #61 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 15.1%.
Is RE Royalties' Gross Margin % too high?
RE Royalties' current Gross Margin % of 69.20% is 21% below median its 10-year median of 87.98. Over the past 10 years, this metric has ranged from a low of 72.59 to a high of 96.40. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. RE Royalties' value of 69.20% is 120.7% above this industry median. Based on the distribution chart, RE Royalties ranks #61 out of 403 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, RE Royalties has a GF Score™ of 38/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RE Royalties' Gross Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, RE Royalties ranks #61 out of 403 companies for Gross Margin %. This places RE Royalties in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 31.35. RE Royalties' value of 69.20% is 120.7% above this benchmark. Historically, RE Royalties' own Gross Margin % has ranged from 72.59 to 96.40 over the past decade. While the company's 10-year median is 87.98 vs. the industry median of 31.35, RE Royalties 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 Utilities - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 403 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. RE Royalties's current Gross Margin % of 69.20% is 120.7% 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 RE Royalties and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RE Royalties's current Gross Margin % is 69.20%, which is 21% below median its own 10-year median of 87.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RE Royalties stock overvalued right now?
Based on GuruFocus' analysis, RE Royalties (RROYF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.20, compared to a current price of $0.25 — trading 24.8% above its estimated fair value. The current Gross Margin % is 69.20%, which is 21% below median its 10-year median of 87.98 and 120.7% above the Utilities - Independent Power Producers industry median of 31.35. RE Royalties' overall GF Score™ is 38/100 with 6 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 RE Royalties (RROYF), the current Gross Margin % is 69.20% 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 RE Royalties (RROYF) Overvalued in 2026?
Based on GuruFocus' analysis, RE Royalties stock appears to be overvalued.
The current stock price of $0.25 is trading 24.8% above its estimated GF Value™ of $0.20.
GuruFocus considers RE Royalties to be Modestly Overvalued.
Key valuation signals for RROYF:
Gross Margin %: 69.20% (21% below median its 10-year median of 87.98)
GF Value™: $0.20 vs. price of $0.25 (24.8% above fair value)
Industry Position: 120.7% above the Utilities - Independent Power Producers median (#61 of 403)
No single metric tells the full story. See the RROYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RE Royalties Ltd is engaged in the acquisition of revenue-based royalties from renewable energy generation facilities and other clean energy technologies by providing a non-dilutive royalty financing solution to privately-held and publicly-traded renewable energy generation and development companies and clean energy technology companies.
38GF Score
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