Woodside Energy GroupWDS -3.54%70 Gross Margin % is 31.14% as of Dec. 2025, which is 42% below its 10-year median of 53.69. GuruFocus rates WDS with a GF Score™ of 70/100 and a GF Value™ of $16.94 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 867 Oil & Gas companies, Woodside Energy Group ranks better than 63.78% on this metric.
WDS's Gross Margin % is ranked better than 63.78% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs WDS: 34.97
Woodside Energy Group had a gross margin of 31.14% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Woodside Energy Group was 9.50% per year.
Woodside Energy Group (NYSE:WDS) 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
Woodside Energy Group had a gross margin of 31.14% for the quarter that ended in Dec. 2025 => 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.
Woodside Energy Group Gross Margin % Related Terms
Woodside Energy Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Woodside Energy Group'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, Woodside Energy Group'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.
Woodside Energy Group Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Woodside Energy Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Woodside Energy Group'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.
Woodside Energy Group (WDS) has a Gross Margin % of 31.14% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Woodside Energy Group and its competitors. This is 42% below median its historical median of 53.69. Over the past decade, Woodside Energy Group's Gross Margin % has ranged from 17.08 to 79.82. According to the industry distribution chart, Woodside Energy Group ranks #314 out of 867 companies in the Oil & Gas industry, placing it in the top 36.2%.
Is Woodside Energy Group's Gross Margin % too high?
Woodside Energy Group's current Gross Margin % of 31.14% is 42% below median its 10-year median of 53.69. Over the past 10 years, this metric has ranged from a low of 17.08 to a high of 79.82. The Oil & Gas industry median Gross Margin % is 25.70. Woodside Energy Group's value of 31.14% is 21.2% above this industry median. Based on the distribution chart, Woodside Energy Group ranks #314 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Woodside Energy Group has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Woodside Energy Group's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Woodside Energy Group ranks #314 out of 867 companies for Gross Margin %. This puts Woodside Energy Group in the upper half of its industry. The industry median Gross Margin % is 25.70. Woodside Energy Group's value of 31.14% is 21.2% above this benchmark. Historically, Woodside Energy Group's own Gross Margin % has ranged from 17.08 to 79.82 over the past decade. While the company's 10-year median is 53.69 vs. the industry median of 25.70, Woodside Energy Group 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. Woodside Energy Group's current Gross Margin % of 31.14% is 21.2% 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 Woodside Energy Group 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. Woodside Energy Group's current Gross Margin % is 31.14%, which is 42% below median its own 10-year median of 53.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Woodside Energy Group stock overvalued right now?
Based on GuruFocus' analysis, Woodside Energy Group (WDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $16.94, compared to a current price of $19.06 — trading 12.5% above its estimated fair value. The current Gross Margin % is 31.14%, which is 42% below median its 10-year median of 53.69 and 21.2% above the Oil & Gas industry median of 25.70. Woodside Energy Group's overall GF Score™ is 70/100 with 5 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 Woodside Energy Group (WDS), the current Gross Margin % is 31.14% as of Dec. 2025. 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 Woodside Energy Group (WDS) Overvalued in 2026?
Based on GuruFocus' analysis, Woodside Energy Group stock appears to be overvalued.
The current stock price of $19.06 is trading 12.5% above its estimated GF Value™ of $16.94.
GuruFocus considers Woodside Energy Group to be Modestly Overvalued.
Key valuation signals for WDS:
Gross Margin %: 31.14% (42% below median its 10-year median of 53.69)
GF Value™: $16.94 vs. price of $19.06 (12.5% above fair value)
Industry Position: 21.2% above the Oil & Gas median (#314 of 867)
No single metric tells the full story. See the WDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Incorporated in 1954 and named after the small Victorian town of Woodside, Woodside's early exploration focus moved from Victoria's Gippsland Basin to Western Australia's Carnarvon Basin. First LNG production from the North West Shelf came in 1984. BHP Billiton and Shell each had 40% shareholdings before BHP sold out in 1994 and Shell sold down to 34%. In 2017 Shell sold its entire shareholding. Woodside is one of the most LNG-leveraged companies globally.
70GF Score
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