Odfjell DrillingFRA:OD3 -1.06%76 Gross Margin % is 63.80% as of Mar. 2026, which is 9% below its 10-year median of 70.19. GuruFocus rates FRA:OD3 with a GF Score™ of 76/100 and a GF Value™ of €6.38 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 872 Oil & Gas companies, Odfjell Drilling ranks better than 90.37% on this metric.
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
Odfjell Drilling had a gross margin of 63.80% 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.
Odfjell Drilling Gross Margin % Related Terms
Odfjell Drilling Gross Margin % Historical Data
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The historical data trend for Odfjell Drilling'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.
FRA:OD3 vs NE, RIG, VAL: Gross Margin % Comparison
For the Oil & Gas Drilling subindustry, Odfjell Drilling'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.
Odfjell Drilling Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Odfjell Drilling's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Odfjell Drilling'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.
Odfjell Drilling (FRA:OD3) has a Gross Margin % of 63.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Odfjell Drilling and its competitors. This is near median its historical median of 70.19. Over the past decade, Odfjell Drilling's Gross Margin % has ranged from 56.51 to 95.08. According to the industry distribution chart, Odfjell Drilling ranks #84 out of 872 companies in the Oil & Gas industry, placing it in the top 9.6%.
Is Odfjell Drilling's Gross Margin % too high?
Odfjell Drilling's current Gross Margin % of 63.80% is near median its 10-year median of 70.19. Over the past 10 years, this metric has ranged from a low of 56.51 to a high of 95.08. The Oil & Gas industry median Gross Margin % is 25.54. Odfjell Drilling's value of 63.80% is 149.9% above this industry median. Based on the distribution chart, Odfjell Drilling ranks #84 out of 872 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Odfjell Drilling has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Odfjell Drilling's Gross Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Odfjell Drilling ranks #84 out of 872 companies for Gross Margin %. This places Odfjell Drilling in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.54. Odfjell Drilling's value of 63.80% is 149.9% above this benchmark. Historically, Odfjell Drilling's own Gross Margin % has ranged from 56.51 to 95.08 over the past decade. While the company's 10-year median is 70.19 vs. the industry median of 25.54, Odfjell Drilling 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 25.54, based on 872 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. Odfjell Drilling's current Gross Margin % of 63.80% is 149.9% 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 Odfjell Drilling and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Odfjell Drilling's current Gross Margin % is 63.80%, which is near median its own 10-year median of 70.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Odfjell Drilling stock overvalued right now?
Based on GuruFocus' analysis, Odfjell Drilling (FRA:OD3) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.38, compared to a current price of €7.49 — trading 17.4% above its estimated fair value. The current Gross Margin % is 63.80%, which is near median its 10-year median of 70.19 and 149.9% above the Oil & Gas industry median of 25.54. Odfjell Drilling's overall GF Score™ is 76/100 with 4 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 Odfjell Drilling (FRA:OD3), the current Gross Margin % is 63.80% 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 Odfjell Drilling (FRA:OD3) Overvalued in 2026?
Based on GuruFocus' analysis, Odfjell Drilling stock appears to be overvalued.
The current stock price of €7.49 is trading 17.4% above its estimated GF Value™ of €6.38.
GuruFocus considers Odfjell Drilling to be Modestly Overvalued.
Key valuation signals for FRA:OD3:
Gross Margin %: 63.80% (near median its 10-year median of 70.19)
GF Value™: €6.38 vs. price of €7.49 (17.4% above fair value)
Industry Position: 149.9% above the Oil & Gas median (#84 of 872)
No single metric tells the full story. See the FRA:OD3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Odfjell Drilling Ltd is an integrated offshore drilling and oil service company. The company and its subsidiaries operate mobile offshore drilling units. It operates in the segments Own Fleet and External Fleet. The Own Fleet segment operates mobile offshore drilling units owned by Odfjell Drilling. The External Fleet segment offers management services to other owners of drilling units, mainly operational management, management of regulatory requirements, marketing, contract negotiations, client relations, preparations for the operation, and mobilization. The majority of revenue is generated from the Own Fleet segment. Geographically, it generates the majority of its revenue from Norway.
76GF Score
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