Source Rock RoyaltiesSRRRF 40 Gross Margin % is 55.52% as of Mar. 2026, which is 11% above its 10-year median of 49.82. GuruFocus rates SRRRF with a GF Score™ of 40/100. The stock has 7 warning signs investors should review. Among 869 Oil & Gas companies, Source Rock Royalties ranks better than 79.98% on this metric.
SRRRF's Gross Margin % is ranked better than 79.98% of 869
companies
in the Oil & Gas industry
Industry Median: 25.7
vs SRRRF: 50.48
Source Rock Royalties had a gross margin of 55.52% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Source Rock Royalties was 10.40% per year.
Source Rock Royalties (OTCPK:SRRRF) 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
Source Rock Royalties had a gross margin of 55.52% 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.
Source Rock Royalties Gross Margin % Related Terms
Source Rock Royalties Gross Margin % Historical Data
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The historical data trend for Source Rock 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 Oil & Gas Midstream subindustry, Source Rock 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.
Source Rock Royalties Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Source Rock Royalties's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Source Rock 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.
Source Rock Royalties (SRRRF) has a Gross Margin % of 55.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Source Rock Royalties and its competitors. This is 11% above median its historical median of 49.82. Over the past decade, Source Rock Royalties' Gross Margin % has ranged from 24.64 to 66.38. According to the industry distribution chart, Source Rock Royalties ranks #174 out of 869 companies in the Oil & Gas industry, placing it in the top 20%.
Is Source Rock Royalties' Gross Margin % too high?
Source Rock Royalties' current Gross Margin % of 55.52% is 11% above median its 10-year median of 49.82. Over the past 10 years, this metric has ranged from a low of 24.64 to a high of 66.38. The Oil & Gas industry median Gross Margin % is 25.70. Source Rock Royalties' value of 55.52% is 116% above this industry median. Based on the distribution chart, Source Rock Royalties ranks #174 out of 869 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Source Rock Royalties has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does Source Rock Royalties' Gross Margin % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, Source Rock Royalties ranks #174 out of 869 companies for Gross Margin %. This places Source Rock Royalties in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. Source Rock Royalties' value of 55.52% is 116% above this benchmark. Historically, Source Rock Royalties' own Gross Margin % has ranged from 24.64 to 66.38 over the past decade. While the company's 10-year median is 49.82 vs. the industry median of 25.70, Source Rock 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 Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 869 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. Source Rock Royalties's current Gross Margin % of 55.52% is 116% 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 Source Rock Royalties 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. Source Rock Royalties's current Gross Margin % is 55.52%, which is 11% above median its own 10-year median of 49.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Source Rock Royalties stock overvalued right now?
Source Rock Royalties (SRRRF) has a current Gross Margin % of 55.52%. The current Gross Margin % is 55.52%, which is 11% above median its 10-year median of 49.82 and 116% above the Oil & Gas industry median of 25.70. Source Rock Royalties' overall GF Score™ is 40/100 with 7 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 Source Rock Royalties (SRRRF), the current Gross Margin % is 55.52% 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.
Source Rock Royalties Ltd is engaged in royalty revenue from oil and natural gas properties as reserves are produced by the operators over the economic life of the properties. It focused on acquiring and managing oil and gas royalties and mineral title interests. It has an oil-focused portfolio of royalty interests concentrated in S.E. Saskatchewan, central Alberta, and west-central Saskatchewan.
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