Karoon Energy (ASX:KAR) Moat Score: 4/10 (As of Jul. 01, 2026)


ASX:KAR Karoon Energy Ltd ASX:KAR
57 GF Score
Price A$1.42
GF Value A$1.65
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Karoon Energy Moat Score?

Karoon Energy ASX:KAR -2.41% 57 Moat Score is 4 as of Jul. 01, 2026. GuruFocus rates ASX:KAR with a GF Score™ of 57/100 and a GF Value™ of A$1.65 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,041 Oil & Gas companies, Karoon Energy ranks better than 87.22% on this metric.

Karoon Energy has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Karoon Energy has Narrow Moat: Karoon Energy has a modest moat due to its market position in niche energy sectors and some cost advantages from operational efficiencies. However, it lacks significant brand strength, network effects, or regulatory barriers that would elevate its moat to a stronger level.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Karoon Energy might have Narrow Moat - Discernible but modest moat.

Karoon Energy  (ASX:KAR) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Karoon Energy Moat Score Related Terms

ASX:KAR vs COP, EOG, FANG: Moat Score Comparison

For the Oil & Gas E&P subindustry, Karoon Energy's Moat Score, along with its competitors' market caps and Moat Score 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.

Karoon Energy Moat Score vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Karoon Energy's Moat Score distribution charts can be found below:

* The bar in red indicates where Karoon Energy's Moat Score falls into.


ASX:KAR
57GF Score
Karoon Energy Ltd ASX:KAR
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Karoon Energy (ASX:KAR) has a Moat Score of 4 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Karoon Energy ranks #133 out of 1041 companies in the Oil & Gas industry, placing it in the top 12.8%.
Is Karoon Energy's Moat Score too high?
Karoon Energy's current Moat Score is 4. The Oil & Gas industry median Moat Score is 1.00. Karoon Energy's value of 4 is 300% above this industry median. Based on the distribution chart, Karoon Energy ranks #133 out of 1041 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Karoon Energy has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Karoon Energy's Moat Score compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Karoon Energy ranks #133 out of 1041 companies for Moat Score. This places Karoon Energy in the top 13% of its industry — outperforming the majority of peers. The industry median Moat Score is 1.00. Karoon Energy's value of 4 is 300% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Oil & Gas company?
The median Moat Score among Oil & Gas companies is 1.00, based on 1,041 companies in the industry. Companies in the top quartile (top 25%) have a Moat Score significantly above this median, while those in the bottom quartile fall well below. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karoon Energy's current Moat Score of 4 is 300% 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. For the Oil & Gas industry, the median Moat Score is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karoon Energy's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karoon Energy stock overvalued right now?
Based on GuruFocus' analysis, Karoon Energy (ASX:KAR) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.65, compared to a current price of A$1.42 — trading 13.9% below its estimated fair value. The current Moat Score is 4 and 300% above the Oil & Gas industry median of 1.00. Karoon Energy's overall GF Score™ is 57/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Karoon Energy (ASX:KAR), the current Moat Score is 4 as of Jul. 01, 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 Karoon Energy (ASX:KAR) Overvalued in 2026?

Based on GuruFocus' analysis, Karoon Energy stock appears to be undervalued. The current stock price of A$1.42 is trading 13.9% below its estimated GF Value™ of A$1.65. GuruFocus considers Karoon Energy to be Modestly Undervalued.

Key valuation signals for ASX:KAR:

  • Moat Score: 4
  • GF Value™: A$1.65 vs. price of A$1.42 (13.9% below fair value)
  • GF Score™: 57/100 with 2 warning signs
  • Industry Position: 300% above the Oil & Gas median (#133 of 1041)

No single metric tells the full story. See the ASX:KAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Karoon Energy Business Description

Industry EnergyOil & Gas
Address 6 Riverside Quay, Level 3, Suite 3.02, Southbank, Melbourne, VIC, AUS, 3006
Karoon produces around 8 million barrels of oil equivalent annually from its wholly owned Baúna field in Brazil's offshore Santos Basin and around 3.5 mmboe from 30% owned Who Dat in the US Gulf. The company acquired Baúna from Petrobras in 2020 and steadily increased production via well interventions and new developments. Field life is approaching six years based on proven and probable reserves of 46 million barrels at the end of December 2025, though this excludes a further 140 million barrels in 2C contingent resources that have the potential to increase life further. We credit a life of more than 10 years, assuming conversion of some 2C contingent resources into the reserve category with drilling. There are also prospective untested targets within Karoon's permits.
57GF Score

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A$1.42
Price
A$1.65
GF Value