ValarisVAL +0.21%56 Gross Margin % is 10.59% as of Mar. 2026, which is 34% above its 10-year median of 7.91. GuruFocus rates VAL with a GF Score™ of 56/100 and a GF Value™ of $78.42 (Fairly Valued). The stock has 4 warning signs investors should review. Among 867 Oil & Gas companies, Valaris ranks worse than 57.55% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Valaris's Gross Profit for the
three
months ended in Mar. 2026 was $49 Mil. Valaris's Revenue for the
three
months ended in Mar. 2026 was $465 Mil. Therefore, Valaris's Gross Margin % for the quarter that ended in Mar. 2026 was 10.59%.
The historical rank and industry rank for Valaris's Gross Margin % or its related term are showing as below:
VAL'
s Gross Margin % Range Over the Past 10 Years
Min: -40.92 Med: 7.91 Max: 25.03
Current: 21.22
During the past 7 years, the highestGross Margin % of Valaris was 25.03%. The lowest was -40.92%. And the median was 7.91%.
VAL's Gross Margin % is ranked worse than 57.55% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs VAL: 21.22
Valaris had a gross margin of 10.59% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Valaris was 0.00% per year.
Valaris (NYSE:VAL) 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
Valaris had a gross margin of 10.59% 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.
Valaris Gross Margin % Related Terms
Valaris Gross Margin % Historical Data
* Premium members only.
The historical data trend for Valaris'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, Valaris'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.
Valaris Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Valaris's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Valaris'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.
Valaris (VAL) has a Gross Margin % of 10.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Valaris and its competitors. This is 34% above median its historical median of 7.91. According to the industry distribution chart, Valaris ranks #499 out of 867 companies in the Oil & Gas industry, placing it in the top 57.6%.
Is Valaris' Gross Margin % too high?
Valaris' current Gross Margin % of 10.59% is 34% above median its 10-year median of 7.91. The Oil & Gas industry median Gross Margin % is 25.70. Valaris' value of 10.59% is 58.8% below this industry median. Based on the distribution chart, Valaris ranks #499 out of 867 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Valaris has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Valaris' Gross Margin % compare to RIG and NE?
According to the Oil & Gas industry distribution chart, Valaris ranks #499 out of 867 companies for Gross Margin %. This places Valaris in the lower half of its industry. The industry median Gross Margin % is 25.70. Valaris' value of 10.59% is 58.8% below this benchmark. While the company's 10-year median is 7.91 vs. the industry median of 25.70, Valaris 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. Valaris's current Gross Margin % of 10.59% is 58.8% 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 Valaris 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. Valaris's current Gross Margin % is 10.59%, which is 34% above median its own 10-year median of 7.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valaris stock overvalued right now?
Based on GuruFocus' analysis, Valaris (VAL) is currently considered Fairly Valued. The stock's GF Value™ is $78.42, compared to a current price of $75.68 — trading 3.5% below its estimated fair value. The current Gross Margin % is 10.59%, which is 34% above median its 10-year median of 7.91 and 58.8% below the Oil & Gas industry median of 25.70. Valaris' 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 Valaris (VAL), the current Gross Margin % is 10.59% 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 Valaris (VAL) Overvalued in 2026?
Based on GuruFocus' analysis, Valaris stock appears to be undervalued.
The current stock price of $75.68 is trading 3.5% below its estimated GF Value™ of $78.42.
GuruFocus considers Valaris to be Fairly Valued.
Key valuation signals for VAL:
Gross Margin %: 10.59% (34% above median its 10-year median of 7.91)
GF Value™: $78.42 vs. price of $75.68 (3.5% below fair value)
Industry Position: 58.8% below the Oil & Gas median (#499 of 867)
No single metric tells the full story. See the VAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valaris Ltd is an offshore contract drilling company. The company provides offshore contract drilling services to the international oil and gas industry with operations in almost every offshore market across six continents. Its business consists of four operating segments: Floaters, which includes drillships and semisubmersible rigs; Jackups; ARO; and Other, which consists of management services on rigs owned by third parties. It generates the majority of its revenue from the Floaters segment.
56GF Score
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