Precision DrillingPDS -6.98%70 Gross Margin % is 83.97% as of Mar. 2026, which is 9% above its 10-year median of 76.95. GuruFocus rates PDS with a GF Score™ of 70/100 and a GF Value™ of $65.81 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 867 Oil & Gas companies, Precision Drilling ranks better than 96.31% 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
Precision Drilling had a gross margin of 83.97% 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.
Precision Drilling Gross Margin % Related Terms
Precision Drilling Gross Margin % Historical Data
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The historical data trend for Precision 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.
For the Oil & Gas Drilling subindustry, Precision 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.
Precision Drilling Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Precision Drilling's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Precision 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.
Precision Drilling (PDS) has a Gross Margin % of 83.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Precision Drilling and its competitors. This is near median its historical median of 76.95. Over the past decade, Precision Drilling's Gross Margin % has ranged from 60.96 to 84.65. According to the industry distribution chart, Precision Drilling ranks #32 out of 867 companies in the Oil & Gas industry, placing it in the top 3.7%.
Is Precision Drilling's Gross Margin % too high?
Precision Drilling's current Gross Margin % of 83.97% is near median its 10-year median of 76.95. Over the past 10 years, this metric has ranged from a low of 60.96 to a high of 84.65. The Oil & Gas industry median Gross Margin % is 25.70. Precision Drilling's value of 83.97% is 226.7% above this industry median. Based on the distribution chart, Precision Drilling ranks #32 out of 867 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Precision Drilling has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precision Drilling's Gross Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Precision Drilling ranks #32 out of 867 companies for Gross Margin %. This places Precision Drilling in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. Precision Drilling's value of 83.97% is 226.7% above this benchmark. Historically, Precision Drilling's own Gross Margin % has ranged from 60.96 to 84.65 over the past decade. While the company's 10-year median is 76.95 vs. the industry median of 25.70, Precision 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 25.70, 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. Precision Drilling's current Gross Margin % of 83.97% is 226.7% 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 Precision Drilling 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. Precision Drilling's current Gross Margin % is 83.97%, which is near median its own 10-year median of 76.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Drilling stock overvalued right now?
Based on GuruFocus' analysis, Precision Drilling (PDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $65.81, compared to a current price of $77.56 — trading 17.9% above its estimated fair value. The current Gross Margin % is 83.97%, which is near median its 10-year median of 76.95 and 226.7% above the Oil & Gas industry median of 25.70. Precision Drilling's overall GF Score™ is 70/100 with 2 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 Precision Drilling (PDS), the current Gross Margin % is 83.97% 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 Precision Drilling (PDS) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Drilling stock appears to be overvalued.
The current stock price of $77.56 is trading 17.9% above its estimated GF Value™ of $65.81.
GuruFocus considers Precision Drilling to be Modestly Overvalued.
Key valuation signals for PDS:
Gross Margin %: 83.97% (near median its 10-year median of 76.95)
GF Value™: $65.81 vs. price of $77.56 (17.9% above fair value)
Industry Position: 226.7% above the Oil & Gas median (#32 of 867)
No single metric tells the full story. See the PDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Drilling Corp is a provider of contract drilling, completion, and production services to oil and natural gas exploration and production companies in Canada, the United States, and certain international locations. The company operates through two industry segments: Contract Drilling Services, which generates maximum revenue and includes drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale, and repair of drilling equipment; and Completion and Production Services, which includes service rigs, oilfield equipment rental, and camp services. The company generates the majority of its revenue from the United States.
70GF Score
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