Diamondback EnergySTU:7DB -1.62%65 Gross Margin % is 37.93% as of Mar. 2026, which is 21% below its 10-year median of 48.19. GuruFocus rates STU:7DB with a GF Score™ of 65/100 and a GF Value™ of €163.69 (Fairly Valued). The stock has 6 warning signs investors should review. Among 872 Oil & Gas companies, Diamondback Energy ranks better than 60.32% on this metric.
The historical rank and industry rank for Diamondback Energy's Gross Margin % or its related term are showing as below:
STU:7DB'
s Gross Margin % Range Over the Past 10 Years
Min: 22.45 Med: 48.19 Max: 70.05
Current: 33.06
During the past 13 years, the highestGross Margin % of Diamondback Energy was 70.05%. The lowest was 22.45%. And the median was 48.19%.
STU:7DB's Gross Margin % is ranked better than 60.32% of 872
companies
in the Oil & Gas industry
Industry Median: 25.535
vs STU:7DB: 33.06
Diamondback Energy had a gross margin of 37.93% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Diamondback Energy was 3.00% per year.
Diamondback Energy (STU:7DB) 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
Diamondback Energy had a gross margin of 37.93% 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.
Diamondback Energy Gross Margin % Related Terms
Diamondback Energy Gross Margin % Historical Data
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The historical data trend for Diamondback 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.
STU:7DB vs OXY, DVN, EQT: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Diamondback 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.
Diamondback Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diamondback Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Diamondback 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.
Diamondback Energy (STU:7DB) has a Gross Margin % of 37.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Diamondback Energy and its competitors. This is 21% below median its historical median of 48.19. Over the past decade, Diamondback Energy's Gross Margin % has ranged from 22.45 to 70.05. According to the industry distribution chart, Diamondback Energy ranks #346 out of 872 companies in the Oil & Gas industry, placing it in the top 39.7%.
Is Diamondback Energy's Gross Margin % too high?
Diamondback Energy's current Gross Margin % of 37.93% is 21% below median its 10-year median of 48.19. Over the past 10 years, this metric has ranged from a low of 22.45 to a high of 70.05. The Oil & Gas industry median Gross Margin % is 25.54. Diamondback Energy's value of 37.93% is 48.5% above this industry median. Based on the distribution chart, Diamondback Energy ranks #346 out of 872 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Diamondback Energy has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Diamondback Energy's Gross Margin % compare to OXY and DVN?
According to the Oil & Gas industry distribution chart, Diamondback Energy ranks #346 out of 872 companies for Gross Margin %. This puts Diamondback Energy in the upper half of its industry. The industry median Gross Margin % is 25.54. Diamondback Energy's value of 37.93% is 48.5% above this benchmark. Historically, Diamondback Energy's own Gross Margin % has ranged from 22.45 to 70.05 over the past decade. While the company's 10-year median is 48.19 vs. the industry median of 25.54, Diamondback 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 25.54, based on 872 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. Diamondback Energy's current Gross Margin % of 37.93% is 48.5% 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 Diamondback Energy and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondback Energy's current Gross Margin % is 37.93%, which is 21% below median its own 10-year median of 48.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondback Energy stock overvalued right now?
Based on GuruFocus' analysis, Diamondback Energy (STU:7DB) is currently considered Fairly Valued. The stock's GF Value™ is €163.69, compared to a current price of €157.58 — trading 3.7% below its estimated fair value. The current Gross Margin % is 37.93%, which is 21% below median its 10-year median of 48.19 and 48.5% above the Oil & Gas industry median of 25.54. Diamondback Energy's overall GF Score™ is 65/100 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 Diamondback Energy (STU:7DB), the current Gross Margin % is 37.93% 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 Diamondback Energy (STU:7DB) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondback Energy stock appears to be undervalued.
The current stock price of €157.58 is trading 3.7% below its estimated GF Value™ of €163.69.
GuruFocus considers Diamondback Energy to be Fairly Valued.
Key valuation signals for STU:7DB:
Gross Margin %: 37.93% (21% below median its 10-year median of 48.19)
GF Value™: €163.69 vs. price of €157.58 (3.7% below fair value)
Industry Position: 48.5% above the Oil & Gas median (#346 of 872)
No single metric tells the full story. See the STU:7DB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamondback is a crude oil and natural gas exploration and production firm whose operations represent a pure-play in the US Permian Basin. The company went public in 2012 and has established itself as a top-tier independent producer through disciplined acquisition and operational excellence. The company's most transformational transaction occurred in September 2024 with the completion of its $26 billion merger with Endeavor Energy Resources, which added around 470,000 net acres and doubled Diamondback's total acreage position. Diamondback boasts an enviable position in the Midland sub-basin, with some of the lowest unit costs among its Permian peers.
65GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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