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Nabors IndustriesLTS:0A6M 56 Gross Margin % is 18.00% as of Jun. 2026, which is 143% above its 10-year median of 7.41. GuruFocus rates LTS:0A6M with a GF Score™ of 56/100 and a GF Value™ of $50.44. The stock has 4 warning signs investors should review. Among 870 Oil & Gas companies, Nabors Industries ranks worse than 61.26% 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
Nabors Industries had a gross margin of 18.00% for the quarter that ended in Jun. 2026 => No sustainable 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.
Nabors Industries Gross Margin % Related Terms
Nabors Industries Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nabors Industries'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.
LTS:0A6M vs BORR, SOC, AKTAF: Gross Margin % Comparison
For the Oil & Gas Drilling subindustry, Nabors Industries'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.
Nabors Industries Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Nabors Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nabors Industries'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.
Nabors Industries (LTS:0A6M) has a Gross Margin % of 18.00% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nabors Industries and its competitors. This is 143% above median its historical median of 7.41. According to the industry distribution chart, Nabors Industries ranks #533 out of 870 companies in the Oil & Gas industry, placing it in the top 61.3%.
Is Nabors Industries' Gross Margin % too high?
Nabors Industries' current Gross Margin % of 18.00% is 143% above median its 10-year median of 7.41. The Oil & Gas industry median Gross Margin % is 25.95. Nabors Industries' value of 18.00% is 30.6% below this industry median. Based on the distribution chart, Nabors Industries ranks #533 out of 870 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Nabors Industries has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Nabors Industries' Gross Margin % compare to BORR and SOC?
According to the Oil & Gas industry distribution chart, Nabors Industries ranks #533 out of 870 companies for Gross Margin %. This places Nabors Industries in the lower half of its industry. The industry median Gross Margin % is 25.95. Nabors Industries' value of 18.00% is 30.6% below this benchmark. While the company's 10-year median is 7.41 vs. the industry median of 25.95, Nabors Industries 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 25.95, based on 870 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. Nabors Industries's current Gross Margin % of 18.00% is 30.6% 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 Nabors Industries and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nabors Industries's current Gross Margin % is 18.00%, which is 143% above median its own 10-year median of 7.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nabors Industries stock overvalued right now?
Nabors Industries (LTS:0A6M) has a current Gross Margin % of 18.00%. The stock's GF Value™ is $50.44, compared to a current price of $81.92 — trading 62.4% above its estimated fair value. The current Gross Margin % is 18.00%, which is 143% above median its 10-year median of 7.41 and 30.6% below the Oil & Gas industry median of 25.95. Nabors Industries' overall GF Score™ is 56/100 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 Nabors Industries (LTS:0A6M), the current Gross Margin % is 18.00% 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 Nabors Industries (LTS:0A6M) Overvalued in 2026?
Based on GuruFocus' analysis, Nabors Industries stock appears to be overvalued.
The current stock price of $81.92 is trading 62.4% above its estimated GF Value™ of $50.44.
Key valuation signals for LTS:0A6M:
Gross Margin %: 18.00% (143% above median its 10-year median of 7.41)
GF Value™: $50.44 vs. price of $81.92 (62.4% above fair value)
Industry Position: 30.6% below the Oil & Gas median (#533 of 870)
No single metric tells the full story. See the LTS:0A6M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nabors Industries Ltd owns and operates land-based drilling rig fleets and is a provider of offshore platform rigs in the United States and international markets. It also provides performance tools, directional drilling services, tubular running services, and technologies. The company has four reportable segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. The key revenue of the company is generated from International Drilling.
56GF Score
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