North American Construction Group (NYSE:NOA) 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
North American Construction Group had a gross margin of 13.41% for the quarter that ended in Mar. 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.
North American Construction Group Gross Margin % Related Terms
North American Construction Group 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.
North American Construction Group Gross Margin % Chart
For the Oil & Gas Equipment & Services subindustry, North American Construction Group'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.
North American Construction Group Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, North American Construction Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where North American Construction Group'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.
North American Construction Group (NOA) has a Gross Margin % of 13.41% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on North American Construction Group and its competitors. This is near median its historical median of 14.50. Over the past decade, North American Construction Group's Gross Margin % has ranged from 12.64 to 18.50. According to the industry distribution chart, North American Construction Group ranks #617 out of 867 companies in the Oil & Gas industry, placing it in the top 71.2%.
Is North American Construction Group's Gross Margin % too high?
North American Construction Group's current Gross Margin % of 13.41% is near median its 10-year median of 14.50. Over the past 10 years, this metric has ranged from a low of 12.64 to a high of 18.50. The Oil & Gas industry median Gross Margin % is 25.70. North American Construction Group's value of 13.41% is 47.8% below this industry median. Based on the distribution chart, North American Construction Group ranks #617 out of 867 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, North American Construction Group has a GF Score™ of 84/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does North American Construction Group's Gross Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, North American Construction Group ranks #617 out of 867 companies for Gross Margin %. This places North American Construction Group in the lower half of its industry. The industry median Gross Margin % is 25.70. North American Construction Group's value of 13.41% is 47.8% below this benchmark. Historically, North American Construction Group's own Gross Margin % has ranged from 12.64 to 18.50 over the past decade. While the company's 10-year median is 14.50 vs. the industry median of 25.70, North American Construction Group 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 867 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. North American Construction Group's current Gross Margin % of 13.41% is 47.8% 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 North American Construction Group 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. North American Construction Group's current Gross Margin % is 13.41%, which is near median its own 10-year median of 14.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is North American Construction Group stock overvalued right now?
Based on GuruFocus' analysis, North American Construction Group (NOA) is currently considered Possible Value Trap. The stock's GF Value™ is $24.34, compared to a current price of $13.59 — trading 44.2% below its estimated fair value. The current Gross Margin % is 13.41%, which is near median its 10-year median of 14.50 and 47.8% below the Oil & Gas industry median of 25.70. North American Construction Group's overall GF Score™ is 84/100 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 North American Construction Group (NOA), the current Gross Margin % is 13.41% 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 North American Construction Group (NOA) Overvalued in 2026?
Based on GuruFocus' analysis, North American Construction Group stock appears to be undervalued.
The current stock price of $13.59 is trading 44.2% below its estimated GF Value™ of $24.34.
GuruFocus considers North American Construction Group to be Possible Value Trap.
Key valuation signals for NOA:
Gross Margin %: 13.41% (near median its 10-year median of 14.50)
GF Value™: $24.34 vs. price of $13.59 (44.2% below fair value)
Industry Position: 47.8% below the Oil & Gas median (#617 of 867)
No single metric tells the full story. See the NOA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
North American Construction Group Business Description
North American Construction Group Ltd is Canada's heavy civil construction and mining contractor provider. The company has provided services to oil, natural gas, and resource companies. The Company provides a wide range of mining and heavy civil construction services to customer in the resource development and industrial construction sectors within Canada, the United States, and Australia. The Company's reportable segments are Heavy Equipment Canada, Heavy Equipment Australia, and Other. Heavy Equipment Canada and Heavy Equipment Australia include all of aspects of the mining and heavy civil construction services provided within those geographic areas. Other includes mine management contract work in the United States, its external maintenance and rebuild programs.
84GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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