High Arctic Energy ServicesHGHAF 37 Gross Margin % is 24.64% as of Mar. 2026, which is 40% above its 10-year median of 17.60. GuruFocus rates HGHAF with a GF Score™ of 37/100 and a GF Value™ of $0.86 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 869 Oil & Gas companies, High Arctic Energy Services ranks better than 51.55% on this metric.
High Arctic Energy Services (OTCPK:HGHAF) 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
High Arctic Energy Services had a gross margin of 24.64% for the quarter that ended in Mar. 2026 => 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.
High Arctic Energy Services Gross Margin % Related Terms
High Arctic Energy Services 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, High Arctic Energy Services'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.
High Arctic Energy Services Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, High Arctic Energy Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where High Arctic Energy Services'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.
High Arctic Energy Services (HGHAF) has a Gross Margin % of 24.64% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on High Arctic Energy Services and its competitors. This is 40% above median its historical median of 17.60. According to the industry distribution chart, High Arctic Energy Services ranks #421 out of 869 companies in the Oil & Gas industry, placing it in the top 48.4%.
Is High Arctic Energy Services' Gross Margin % too high?
High Arctic Energy Services' current Gross Margin % of 24.64% is 40% above median its 10-year median of 17.60. The Oil & Gas industry median Gross Margin % is 25.70. High Arctic Energy Services' value of 24.64% is 4.1% below this industry median. Based on the distribution chart, High Arctic Energy Services ranks #421 out of 869 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, High Arctic Energy Services has a GF Score™ of 37/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does High Arctic Energy Services' Gross Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, High Arctic Energy Services ranks #421 out of 869 companies for Gross Margin %. This puts High Arctic Energy Services in the upper half of its industry. The industry median Gross Margin % is 25.70. High Arctic Energy Services' value of 24.64% is 4.1% below this benchmark. While the company's 10-year median is 17.60 vs. the industry median of 25.70, High Arctic Energy Services has consistently been below 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 869 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. High Arctic Energy Services's current Gross Margin % of 24.64% is 4.1% below 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 High Arctic Energy Services 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. High Arctic Energy Services's current Gross Margin % is 24.64%, which is 40% above median its own 10-year median of 17.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is High Arctic Energy Services stock overvalued right now?
Based on GuruFocus' analysis, High Arctic Energy Services (HGHAF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.86, compared to a current price of $0.68 — trading 20.9% below its estimated fair value. The current Gross Margin % is 24.64%, which is 40% above median its 10-year median of 17.60 and 4.1% below the Oil & Gas industry median of 25.70. High Arctic Energy Services' overall GF Score™ is 37/100 with 3 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 High Arctic Energy Services (HGHAF), the current Gross Margin % is 24.64% 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 High Arctic Energy Services (HGHAF) Overvalued in 2026?
Based on GuruFocus' analysis, High Arctic Energy Services stock appears to be undervalued.
The current stock price of $0.68 is trading 20.9% below its estimated GF Value™ of $0.86.
GuruFocus considers High Arctic Energy Services to be Modestly Undervalued.
Key valuation signals for HGHAF:
Gross Margin %: 24.64% (40% above median its 10-year median of 17.60)
GF Value™: $0.86 vs. price of $0.68 (20.9% below fair value)
Industry Position: 4.1% below the Oil & Gas median (#421 of 869)
No single metric tells the full story. See the HGHAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
High Arctic Energy Services Inc is engaged in providing contract drilling, well servicing, completion services, equipment rentals, and other oilfield services to the oil and natural gas industry in Papua New Guinea and Canada. The operating segments of the company are the Drilling Services segment, which consists of drilling services; the Production Services segment, which consists of well servicing and snubbing services and the Rental Services segment consists of High Arctic's oilfield rental equipment of pressure control and other oilfield equipment to exploration and production companies in Canada. The Rental Services segment generates the majority company's revenue.
37GF Score
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