Northern OceanNTNOF 44 Gross Margin % is -154.44% as of Mar. 2026. GuruFocus rates NTNOF with a GF Score™ of 44/100 and a GF Value™ of $0.60 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 872 Oil & Gas companies, Northern Ocean ranks worse than 96.33% 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
Northern Ocean had a gross margin of -154.44% 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.
Northern Ocean Gross Margin % Related Terms
Northern Ocean Gross Margin % Historical Data
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The historical data trend for Northern Ocean'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.
For the Oil & Gas Drilling subindustry, Northern Ocean'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.
Northern Ocean Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Northern Ocean's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Northern Ocean'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.
Northern Ocean (NTNOF) has a Gross Margin % of -154.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Northern Ocean and its competitors. According to the industry distribution chart, Northern Ocean ranks #840 out of 872 companies in the Oil & Gas industry, placing it in the top 96.3%.
Is Northern Ocean's Gross Margin % too high?
Northern Ocean's current Gross Margin % is -154.44%. Based on the distribution chart, Northern Ocean ranks #840 out of 872 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Northern Ocean has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Northern Ocean's Gross Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Northern Ocean ranks #840 out of 872 companies for Gross Margin %. This places Northern Ocean in the lower half of its industry. The industry median Gross Margin % is 25.54. 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. 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 Northern Ocean 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. Northern Ocean's current Gross Margin % is -154.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Ocean stock overvalued right now?
Based on GuruFocus' analysis, Northern Ocean (NTNOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.60, compared to a current price of $0.82 — trading 36.7% above its estimated fair value. The current Gross Margin % is -154.44%. Northern Ocean's overall GF Score™ is 44/100 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 Northern Ocean (NTNOF), the current Gross Margin % is -154.44% 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 Northern Ocean (NTNOF) Overvalued in 2026?
Based on GuruFocus' analysis, Northern Ocean stock appears to be overvalued.
The current stock price of $0.82 is trading 36.7% above its estimated GF Value™ of $0.60.
GuruFocus considers Northern Ocean to be Significantly Overvalued.
Key valuation signals for NTNOF:
Gross Margin %: -154.44%
GF Value™: $0.60 vs. price of $0.82 (36.7% above fair value)
No single metric tells the full story. See the NTNOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northern Ocean Ltd is an international offshore drilling contractor for the oil and gas industry. The company acquires and operates modern drilling assets and is engaged in offshore contract drilling in benign and harsh environments, including ultra-deep-water environments. It owns a semi-submersible rig, Deepsea Mira. The company earns revenue mainly from drilling contracts for rigs.
44GF Score
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