Southern EnergySOUTF +4.92% Gross Margin % is 29.46% as of Mar. 2026, which is 75% above its 10-year median of 16.83. The stock has 2 warning signs investors should review. Among 867 Oil & Gas companies, Southern Energy ranks worse than 62.17% on this metric.
The historical rank and industry rank for Southern Energy's Gross Margin % or its related term are showing as below:
SOUTF'
s Gross Margin % Range Over the Past 10 Years
Min: -2.33 Med: 16.83 Max: 49.54
Current: 17.89
During the past 13 years, the highestGross Margin % of Southern Energy was 49.54%. The lowest was -2.33%. And the median was 16.83%.
SOUTF's Gross Margin % is ranked worse than 62.17% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs SOUTF: 17.89
Southern Energy had a gross margin of 29.46% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Southern Energy was 0.00% per year.
Southern Energy (OTCPK:SOUTF) 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
Southern Energy had a gross margin of 29.46% 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.
Southern Energy Gross Margin % Related Terms
Southern Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Southern 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, Southern 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.
Southern Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Southern Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Southern 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.
Southern Energy (SOUTF) has a Gross Margin % of 29.46% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Southern Energy and its competitors. This is 75% above median its historical median of 16.83. According to the industry distribution chart, Southern Energy ranks #539 out of 867 companies in the Oil & Gas industry, placing it in the top 62.2%.
Is Southern Energy's Gross Margin % too high?
Southern Energy's current Gross Margin % of 29.46% is 75% above median its 10-year median of 16.83. The Oil & Gas industry median Gross Margin % is 25.70. Southern Energy's value of 29.46% is 14.6% above this industry median. Based on the distribution chart, Southern Energy ranks #539 out of 867 companies in the Oil & Gas industry, which is below the industry midpoint.
How does Southern Energy's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Southern Energy ranks #539 out of 867 companies for Gross Margin %. This places Southern Energy in the lower half of its industry. The industry median Gross Margin % is 25.70. Southern Energy's value of 29.46% is 14.6% above this benchmark. While the company's 10-year median is 16.83 vs. the industry median of 25.70, Southern 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. Southern Energy's current Gross Margin % of 29.46% is 14.6% 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 Southern 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. Southern Energy's current Gross Margin % is 29.46%, which is 75% above median its own 10-year median of 16.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Energy stock overvalued right now?
Based on GuruFocus' analysis, Southern Energy (SOUTF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.06, compared to a current price of $0.05 — trading 11.2% below its estimated fair value. The current Gross Margin % is 29.46%, which is 75% above median its 10-year median of 16.83 and 14.6% above the Oil & Gas industry median of 25.70. 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 Southern Energy (SOUTF), the current Gross Margin % is 29.46% 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.
Southern Energy Corp is a petroleum and natural gas exploration and production company. It has a primary focus on acquiring and developing conventional natural gas and light oil resources in the Southeast Gulf States of Mississippi, Louisiana, and East Texas. The company has single operating segment.
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