ArcherSTU:8SW -1.64%62 Gross Margin % is 92.78% as of Mar. 2026, which is 1% below its 10-year median of 93.96. GuruFocus rates STU:8SW with a GF Score™ of 62/100 and a GF Value™ of €1.40 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 867 Oil & Gas companies, Archer ranks better than 98.5% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Archer's Gross Profit for the
three
months ended in Mar. 2026 was €223 Mil. Archer's Revenue for the
three
months ended in Mar. 2026 was €241 Mil. Therefore, Archer's Gross Margin % for the quarter that ended in Mar. 2026 was 92.78%.
The historical rank and industry rank for Archer's Gross Margin % or its related term are showing as below:
STU:8SW'
s Gross Margin % Range Over the Past 10 Years
Min: 91.79 Med: 93.96 Max: 95.74
Current: 94.09
During the past 13 years, the highestGross Margin % of Archer was 95.74%. The lowest was 91.79%. And the median was 93.96%.
STU:8SW's Gross Margin % is ranked better than 98.5% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs STU:8SW: 94.09
Archer had a gross margin of 92.78% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Archer was -0.10% per year.
Archer (STU:8SW) 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
Archer had a gross margin of 92.78% 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.
Archer Gross Margin % Related Terms
Archer Gross Margin % Historical Data
* Premium members only.
The historical data trend for Archer'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.
STU:8SW vs NE, RIG, VAL: Gross Margin % Comparison
For the Oil & Gas Drilling subindustry, Archer'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.
Archer Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Archer's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Archer'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.
Archer (STU:8SW) has a Gross Margin % of 92.78% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Archer and its competitors. This is near median its historical median of 93.96. Over the past decade, Archer's Gross Margin % has ranged from 91.79 to 95.74. According to the industry distribution chart, Archer ranks #13 out of 867 companies in the Oil & Gas industry, placing it in the top 1.5%.
Is Archer's Gross Margin % too high?
Archer's current Gross Margin % of 92.78% is near median its 10-year median of 93.96. Over the past 10 years, this metric has ranged from a low of 91.79 to a high of 95.74. The Oil & Gas industry median Gross Margin % is 25.70. Archer's value of 92.78% is 261% above this industry median. Based on the distribution chart, Archer ranks #13 out of 867 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Archer has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Archer's Gross Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Archer ranks #13 out of 867 companies for Gross Margin %. This places Archer in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. Archer's value of 92.78% is 261% above this benchmark. Historically, Archer's own Gross Margin % has ranged from 91.79 to 95.74 over the past decade. While the company's 10-year median is 93.96 vs. the industry median of 25.70, Archer 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. Archer's current Gross Margin % of 92.78% is 261% 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 Archer 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. Archer's current Gross Margin % is 92.78%, which is near median its own 10-year median of 93.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Archer stock overvalued right now?
Based on GuruFocus' analysis, Archer (STU:8SW) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.40, compared to a current price of €1.98 — trading 41.6% above its estimated fair value. The current Gross Margin % is 92.78%, which is near median its 10-year median of 93.96 and 261% above the Oil & Gas industry median of 25.70. Archer's overall GF Score™ is 62/100 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 Archer (STU:8SW), the current Gross Margin % is 92.78% 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 Archer (STU:8SW) Overvalued in 2026?
Based on GuruFocus' analysis, Archer stock appears to be overvalued.
The current stock price of €1.98 is trading 41.6% above its estimated GF Value™ of €1.40.
GuruFocus considers Archer to be Significantly Overvalued.
Key valuation signals for STU:8SW:
Gross Margin %: 92.78% (near median its 10-year median of 93.96)
GF Value™: €1.40 vs. price of €1.98 (41.6% above fair value)
Industry Position: 261% above the Oil & Gas median (#13 of 867)
No single metric tells the full story. See the STU:8SW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Archer Ltd is an international oilfield service company providing various oilfield products and services through its area organizations. Its services include platform drilling, land drilling, directional drilling, underbalanced drilling, modular rigs, engineering services, equipment rentals, wireline services, pressure control, pressure pumping, production monitoring, well imaging, and integrity management tools. The reporting segments of the company are Platform Operations, Well Services, Renewables, and Land Drilling. The majority of revenue is derived from the Platform Operations segment. The Platform Operations segment includes Platform Drilling, Modular rig, and Engineering services.
62GF Score
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