Obsidian EnergyTSX:OBE -0.77%56 Gross Margin % is 60.90% as of Mar. 2026, which is 320% above its 10-year median of 14.50. GuruFocus rates TSX:OBE with a GF Score™ of 56/100 and a GF Value™ of C$6.92 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 869 Oil & Gas companies, Obsidian Energy ranks better than 82.28% on this metric.
The historical rank and industry rank for Obsidian Energy's Gross Margin % or its related term are showing as below:
TSX:OBE'
s Gross Margin % Range Over the Past 10 Years
Min: -221.54 Med: 14.5 Max: 127.62
Current: 53.86
During the past 13 years, the highestGross Margin % of Obsidian Energy was 127.62%. The lowest was -221.54%. And the median was 14.50%.
TSX:OBE's Gross Margin % is ranked better than 82.28% of 869
companies
in the Oil & Gas industry
Industry Median: 25.7
vs TSX:OBE: 53.86
Obsidian Energy had a gross margin of 60.90% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Obsidian Energy was 0.00% per year.
Obsidian Energy (TSX:OBE) 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
Obsidian Energy had a gross margin of 60.90% 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.
Obsidian Energy Gross Margin % Related Terms
Obsidian Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Obsidian 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.
TSX:OBE vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Obsidian 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.
Obsidian Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Obsidian Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Obsidian 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.
Obsidian Energy (TSX:OBE) has a Gross Margin % of 60.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Obsidian Energy and its competitors. This is 320% above median its historical median of 14.50. According to the industry distribution chart, Obsidian Energy ranks #154 out of 869 companies in the Oil & Gas industry, placing it in the top 17.7%.
Is Obsidian Energy's Gross Margin % too high?
Obsidian Energy's current Gross Margin % of 60.90% is 320% above median its 10-year median of 14.50. The Oil & Gas industry median Gross Margin % is 25.70. Obsidian Energy's value of 60.90% is 137% above this industry median. Based on the distribution chart, Obsidian Energy ranks #154 out of 869 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Obsidian Energy has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Obsidian Energy's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Obsidian Energy ranks #154 out of 869 companies for Gross Margin %. This places Obsidian Energy in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. Obsidian Energy's value of 60.90% is 137% above this benchmark. While the company's 10-year median is 14.50 vs. the industry median of 25.70, Obsidian 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 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. Obsidian Energy's current Gross Margin % of 60.90% is 137% 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 Obsidian 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. Obsidian Energy's current Gross Margin % is 60.90%, which is 320% above median its own 10-year median of 14.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Obsidian Energy stock overvalued right now?
Based on GuruFocus' analysis, Obsidian Energy (TSX:OBE) is currently considered Significantly Overvalued. The stock's GF Value™ is C$6.92, compared to a current price of C$11.61 — trading 67.8% above its estimated fair value. The current Gross Margin % is 60.90%, which is 320% above median its 10-year median of 14.50 and 137% above the Oil & Gas industry median of 25.70. Obsidian Energy's overall GF Score™ is 56/100 with 3 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 Obsidian Energy (TSX:OBE), the current Gross Margin % is 60.90% 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 Obsidian Energy (TSX:OBE) Overvalued in 2026?
Based on GuruFocus' analysis, Obsidian Energy stock appears to be overvalued.
The current stock price of C$11.61 is trading 67.8% above its estimated GF Value™ of C$6.92.
GuruFocus considers Obsidian Energy to be Significantly Overvalued.
Key valuation signals for TSX:OBE:
Gross Margin %: 60.90% (320% above median its 10-year median of 14.50)
GF Value™: C$6.92 vs. price of C$11.61 (67.8% above fair value)
Industry Position: 137% above the Oil & Gas median (#154 of 869)
No single metric tells the full story. See the TSX:OBE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Obsidian Energy Ltd is an intermediate-sized oil and gas producer with strategic assets in Alberta. It operates in a single reporting segment that is exploration, development, and holding an interest in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin. The company generates the majority of the revenue from the Sale of Oil.
56GF Score
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