ARC ResourcesTSX:ARX +0.20%68 Gross Margin % is 52.59% as of Mar. 2026, which is 4% above its 10-year median of 50.38. GuruFocus rates TSX:ARX with a GF Score™ of 68/100 and a GF Value™ of C$29.44 (Fairly Valued). The stock has 7 warning signs investors should review. Among 872 Oil & Gas companies, ARC Resources ranks better than 79.7% 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
ARC Resources had a gross margin of 52.59% 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.
ARC Resources Gross Margin % Related Terms
ARC Resources Gross Margin % Historical Data
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The historical data trend for ARC Resources'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.
TSX:ARX vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, ARC Resources'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.
ARC Resources Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, ARC Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ARC Resources'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.
ARC Resources (TSX:ARX) has a Gross Margin % of 52.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on ARC Resources and its competitors. This is near median its historical median of 50.38. Over the past decade, ARC Resources' Gross Margin % has ranged from 45.10 to 57.03. According to the industry distribution chart, ARC Resources ranks #177 out of 872 companies in the Oil & Gas industry, placing it in the top 20.3%.
Is ARC Resources' Gross Margin % too high?
ARC Resources' current Gross Margin % of 52.59% is near median its 10-year median of 50.38. Over the past 10 years, this metric has ranged from a low of 45.10 to a high of 57.03. The Oil & Gas industry median Gross Margin % is 25.62. ARC Resources' value of 52.59% is 105.3% above this industry median. Based on the distribution chart, ARC Resources ranks #177 out of 872 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, ARC Resources has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ARC Resources' Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, ARC Resources ranks #177 out of 872 companies for Gross Margin %. This places ARC Resources in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.62. ARC Resources' value of 52.59% is 105.3% above this benchmark. Historically, ARC Resources' own Gross Margin % has ranged from 45.10 to 57.03 over the past decade. While the company's 10-year median is 50.38 vs. the industry median of 25.62, ARC Resources 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 25.62, 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. ARC Resources's current Gross Margin % of 52.59% is 105.3% 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 ARC Resources and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARC Resources's current Gross Margin % is 52.59%, which is near median its own 10-year median of 50.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARC Resources stock overvalued right now?
Based on GuruFocus' analysis, ARC Resources (TSX:ARX) is currently considered Fairly Valued. The stock's GF Value™ is C$29.44, compared to a current price of C$29.70 — trading 0.9% above its estimated fair value. The current Gross Margin % is 52.59%, which is near median its 10-year median of 50.38 and 105.3% above the Oil & Gas industry median of 25.62. ARC Resources' overall GF Score™ is 68/100 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 ARC Resources (TSX:ARX), the current Gross Margin % is 52.59% 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 ARC Resources (TSX:ARX) Overvalued in 2026?
Based on GuruFocus' analysis, ARC Resources stock appears to be overvalued.
The current stock price of C$29.70 is trading 0.9% above its estimated GF Value™ of C$29.44.
GuruFocus considers ARC Resources to be Fairly Valued.
Key valuation signals for TSX:ARX:
Gross Margin %: 52.59% (near median its 10-year median of 50.38)
GF Value™: C$29.44 vs. price of C$29.70 (0.9% above fair value)
Industry Position: 105.3% above the Oil & Gas median (#177 of 872)
No single metric tells the full story. See the TSX:ARX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arc Resources is a natural gas and condensate-focused producer in the Western Canada Sedimentary Basin. Its most valuable product by revenue, condensate, is a necessary feedstock for the oil industry. Natural gas is the largest product by volume, and the firm actively markets it through pipeline and liquefied natural gas agreements, seeking to limit in-basin pricing. It also operates its own processing assets. In 2024, production was 348 thousand barrels of oil equivalent per day.
68GF Score
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