ROYL (Royale Energy) Moat Score: 2/10 (As of Jun. 27, 2026)


What is Royale Energy Moat Score?

Royale Energy ROYL -3.14% Moat Score is 2 as of Jun. 27, 2026. The stock has 3 warning signs investors should review. Among 1,041 Oil & Gas companies, Royale Energy ranks better than 63.3% on this metric.

Royale Energy has the Moat Score of 2, which implies that the company might have No Moat - Very weak/transient advantages.

Royale Energy has No Moat: Royale Energy Inc operates in a competitive energy sector with no significant market share or proprietary technology. The company lacks strong brand strength, customer loyalty, and regulatory advantages.

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 Royale Energy might have No Moat - Very weak/transient advantages.

Royale Energy  (OTCPK:ROYL) 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

Royale Energy Moat Score Related Terms

ROYL vs GULTU, HGTXU, MTR: Moat Score Comparison

For the Oil & Gas E&P subindustry, Royale 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.

Royale Energy Moat Score vs Oil & Gas Industry

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

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


Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 2 mean?
Royale Energy (ROYL) has a Moat Score of 2 as of Jun. 27, 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, Royale Energy ranks #382 out of 1041 companies in the Oil & Gas industry, placing it in the top 36.7%.
Is Royale Energy's Moat Score too high?
Royale Energy's current Moat Score is 2. The Oil & Gas industry median Moat Score is 1.00. Royale Energy's value of 2 is 100% above this industry median. Based on the distribution chart, Royale Energy ranks #382 out of 1041 companies in the Oil & Gas industry, which is above the industry midpoint.
How does Royale Energy's Moat Score compare to GULTU and HGTXU?
According to the Oil & Gas industry distribution chart, Royale Energy ranks #382 out of 1041 companies for Moat Score. This puts Royale Energy in the upper half of its industry. The industry median Moat Score is 1.00. Royale Energy's value of 2 is 100% 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. Royale Energy's current Moat Score of 2 is 100% 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. Royale Energy's current Moat Score is 2. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royale Energy stock overvalued right now?
Based on GuruFocus' analysis, Royale Energy (ROYL) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.03, compared to a current price of $0.09 — trading 208.3% above its estimated fair value. The current Moat Score is 2 and 100% above the Oil & Gas industry median of 1.00. 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 Royale Energy (ROYL), the current Moat Score is 2 as of Jun. 27, 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.

Royale Energy Business Description

Industry EnergyOil & Gas
Address 1530 Hilton Head Road, Suite 205, El Cajon, CA, USA, 92019
Royale Energy Inc is an independent oil and natural gas producer. The company's business includes the production and sale of oil and natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of both exploratory and development wells, and sales of fractional working interests in wells to be drilled by Royale. Its wells and leases are located in the Sacramento Basin and San Joaquin Basin in California as well as in Utah, Texas, Oklahoma, and Louisiana.