United Drilling ToolsNSE:UNIDT +0.04%69 Operating Margin % is 14.53% as of Mar. 2026, which is 24% below its 10-year median of 19.02. GuruFocus rates NSE:UNIDT with a GF Score™ of 69/100 and a GF Value™ of ₹276.90 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 916 Oil & Gas companies, United Drilling Tools ranks better than 67.14% on this metric.
United Drilling Tools (NSE:UNIDT) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
United Drilling Tools Operating Margin % Related Terms
United Drilling Tools Operating Margin % Historical Data
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The historical data trend for United Drilling Tools's Operating 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.
NSE:UNIDT vs SLB, BKR, HAL: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, United Drilling Tools's Operating Margin %, along with its competitors' market caps and Operating 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.
United Drilling Tools Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, United Drilling Tools's Operating Margin % distribution charts can be found below:
* The bar in red indicates where United Drilling Tools's Operating Margin % falls into.
United Drilling Tools Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
United Drilling Tools's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
United Drilling Tools (NSE:UNIDT) has a Operating Margin % of 14.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on United Drilling Tools and its competitors. This is 24% below median its historical median of 19.02. Over the past decade, United Drilling Tools' Operating Margin % has ranged from 12.41 to 45.84. According to the industry distribution chart, United Drilling Tools ranks #301 out of 916 companies in the Oil & Gas industry, placing it in the top 32.9%.
Is United Drilling Tools' Operating Margin % too high?
United Drilling Tools' current Operating Margin % of 14.53% is 24% below median its 10-year median of 19.02. Over the past 10 years, this metric has ranged from a low of 12.41 to a high of 45.84. The Oil & Gas industry median Operating Margin % is 6.86. United Drilling Tools' value of 14.53% is 111.8% above this industry median. Based on the distribution chart, United Drilling Tools ranks #301 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, United Drilling Tools has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does United Drilling Tools' Operating Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, United Drilling Tools ranks #301 out of 916 companies for Operating Margin %. This puts United Drilling Tools in the upper half of its industry. The industry median Operating Margin % is 6.86. United Drilling Tools' value of 14.53% is 111.8% above this benchmark. Historically, United Drilling Tools' own Operating Margin % has ranged from 12.41 to 45.84 over the past decade. While the company's 10-year median is 19.02 vs. the industry median of 6.86, United Drilling Tools 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 Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Drilling Tools's current Operating Margin % of 14.53% is 111.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on United Drilling Tools and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Drilling Tools's current Operating Margin % is 14.53%, which is 24% below median its own 10-year median of 19.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Drilling Tools stock overvalued right now?
Based on GuruFocus' analysis, United Drilling Tools (NSE:UNIDT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹276.90, compared to a current price of ₹218.72 — trading 21% below its estimated fair value. The current Operating Margin % is 14.53%, which is 24% below median its 10-year median of 19.02 and 111.8% above the Oil & Gas industry median of 6.86. United Drilling Tools' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For United Drilling Tools (NSE:UNIDT), the current Operating Margin % is 14.53% 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 United Drilling Tools (NSE:UNIDT) Overvalued in 2026?
Based on GuruFocus' analysis, United Drilling Tools stock appears to be undervalued.
The current stock price of ₹218.72 is trading 21% below its estimated GF Value™ of ₹276.90.
GuruFocus considers United Drilling Tools to be Modestly Undervalued.
Key valuation signals for NSE:UNIDT:
Operating Margin %: 14.53% (24% below median its 10-year median of 19.02)
GF Value™: ₹276.90 vs. price of ₹218.72 (21% below fair value)
Industry Position: 111.8% above the Oil & Gas median (#301 of 916)
No single metric tells the full story. See the NSE:UNIDT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Drilling Tools Ltd is a manufacturer of Oilfield Equipment. Its product profile includes Wireline Winch Units, Artificial Gas Lift Equipment, Connectors, Down Hole Tools, and Casing Pipe with Connectors. The company operates in domestic as well as international markets.
69GF Score
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