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Drilling Tools InternationalDTI -0.77%63 Gross Margin % is 53.17% as of Jun. 2026, which is 10% below its 10-year median of 59.31. GuruFocus rates DTI with a GF Score™ of 63/100 and a GF Value™ of $2.69 (Fairly Valued). The stock has 7 warning signs investors should review. Among 875 Oil & Gas companies, Drilling Tools International ranks better than 80.8% on this metric.
Drilling Tools International (NAS:DTI) 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
Drilling Tools International had a gross margin of 53.17% for the quarter that ended in Jun. 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.
Drilling Tools International Gross Margin % Related Terms
Drilling Tools International Gross Margin % Historical Data
* 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 Equipment & Services subindustry, Drilling Tools International'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.
Drilling Tools International Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Drilling Tools International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Drilling Tools International'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.
Drilling Tools International (DTI) has a Gross Margin % of 53.17% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Drilling Tools International and its competitors. This is 10% below median its historical median of 59.31. Over the past decade, Drilling Tools International's Gross Margin % has ranged from 41.40 to 63.25. According to the industry distribution chart, Drilling Tools International ranks #168 out of 875 companies in the Oil & Gas industry, placing it in the top 19.2%.
Is Drilling Tools International's Gross Margin % too high?
Drilling Tools International's current Gross Margin % of 53.17% is 10% below median its 10-year median of 59.31. Over the past 10 years, this metric has ranged from a low of 41.40 to a high of 63.25. The Oil & Gas industry median Gross Margin % is 26.91. Drilling Tools International's value of 53.17% is 97.6% above this industry median. Based on the distribution chart, Drilling Tools International ranks #168 out of 875 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Drilling Tools International has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Drilling Tools International's Gross Margin % compare to LSE and DWSN?
According to the Oil & Gas industry distribution chart, Drilling Tools International ranks #168 out of 875 companies for Gross Margin %. This places Drilling Tools International in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.91. Drilling Tools International's value of 53.17% is 97.6% above this benchmark. Historically, Drilling Tools International's own Gross Margin % has ranged from 41.40 to 63.25 over the past decade. While the company's 10-year median is 59.31 vs. the industry median of 26.91, Drilling Tools International 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 26.91, based on 875 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. Drilling Tools International's current Gross Margin % of 53.17% is 97.6% 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 Drilling Tools International and its competitors. For the Oil & Gas industry, the median Gross Margin % is 26.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drilling Tools International's current Gross Margin % is 53.17%, which is 10% below median its own 10-year median of 59.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drilling Tools International stock overvalued right now?
Based on GuruFocus' analysis, Drilling Tools International (DTI) is currently considered Fairly Valued. The stock's GF Value™ is $2.69, compared to a current price of $2.58 — trading 4.3% below its estimated fair value. The current Gross Margin % is 53.17%, which is 10% below median its 10-year median of 59.31 and 97.6% above the Oil & Gas industry median of 26.91. Drilling Tools International's overall GF Score™ is 63/100 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 Drilling Tools International (DTI), the current Gross Margin % is 53.17% as of Jun. 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 Drilling Tools International (DTI) Overvalued in 2026?
Based on GuruFocus' analysis, Drilling Tools International stock appears to be undervalued.
The current stock price of $2.58 is trading 4.3% below its estimated GF Value™ of $2.69.
GuruFocus considers Drilling Tools International to be Fairly Valued.
Key valuation signals for DTI:
Gross Margin %: 53.17% (10% below median its 10-year median of 59.31)
GF Value™: $2.69 vs. price of $2.58 (4.3% below fair value)
Industry Position: 97.6% above the Oil & Gas median (#168 of 875)
No single metric tells the full story. See the DTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Drilling Tools International Corp is an oilfield services company that designs, engineers, and manufactures rental-focused tools used in onshore and offshore horizontal and directional drilling operations, as well as solutions across the well life cycle. It operates through two geographic segments: Western Hemisphere and Eastern Hemisphere. The Western Hemisphere, which generates the majority of revenue, provides downhole drilling tools and rental services for onshore and offshore operations across North America and Latin America, supported by service centers in the U.S. and Canada. The Eastern Hemisphere covers Europe, the Middle East, and Asia-Pacific, where the company offers drilling and well lifecycle solutions through international service centers across the EMEA and APAC regions.
63GF Score
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