Antero MidstreamAM -0.20%81 Operating Margin % is 55.44% as of Mar. 2026, which is 1% below its 10-year median of 56.04. GuruFocus rates AM with a GF Score™ of 81/100 and a GF Value™ of $17.30 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 916 Oil & Gas companies, Antero Midstream ranks better than 96.94% on this metric.
Antero Midstream (NYSE:AM) 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.
Antero Midstream Operating Margin % Related Terms
Antero Midstream Operating Margin % Historical Data
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The historical data trend for Antero Midstream'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.
AM vs VNOM, FRO, DTM: Operating Margin % Comparison
For the Oil & Gas Midstream subindustry, Antero Midstream'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.
Antero Midstream Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Antero Midstream's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Antero Midstream's Operating Margin % falls into.
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.
Antero Midstream's Operating Margin % for the fiscal year that ended in Dec. 2025 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.
Antero Midstream (AM) has a Operating Margin % of 55.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Antero Midstream and its competitors. This is near median its historical median of 56.04. Over the past decade, Antero Midstream's Operating Margin % has ranged from 43.73 to 58.21. According to the industry distribution chart, Antero Midstream ranks #28 out of 916 companies in the Oil & Gas industry, placing it in the top 3.1%.
Is Antero Midstream's Operating Margin % too high?
Antero Midstream's current Operating Margin % of 55.44% is near median its 10-year median of 56.04. Over the past 10 years, this metric has ranged from a low of 43.73 to a high of 58.21. The Oil & Gas industry median Operating Margin % is 6.86. Antero Midstream's value of 55.44% is 708.2% above this industry median. Based on the distribution chart, Antero Midstream ranks #28 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Antero Midstream has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Antero Midstream's Operating Margin % compare to VNOM and FRO?
According to the Oil & Gas industry distribution chart, Antero Midstream ranks #28 out of 916 companies for Operating Margin %. This places Antero Midstream in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Antero Midstream's value of 55.44% is 708.2% above this benchmark. Historically, Antero Midstream's own Operating Margin % has ranged from 43.73 to 58.21 over the past decade. While the company's 10-year median is 56.04 vs. the industry median of 6.86, Antero Midstream 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. Antero Midstream's current Operating Margin % of 55.44% is 708.2% 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 Antero Midstream 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. Antero Midstream's current Operating Margin % is 55.44%, which is near median its own 10-year median of 56.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Antero Midstream stock overvalued right now?
Based on GuruFocus' analysis, Antero Midstream (AM) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.30, compared to a current price of $22.17 — trading 28.1% above its estimated fair value. The current Operating Margin % is 55.44%, which is near median its 10-year median of 56.04 and 708.2% above the Oil & Gas industry median of 6.86. Antero Midstream's overall GF Score™ is 81/100 with 8 warning signs 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 Antero Midstream (AM), the current Operating Margin % is 55.44% 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 Antero Midstream (AM) Overvalued in 2026?
Based on GuruFocus' analysis, Antero Midstream stock appears to be overvalued.
The current stock price of $22.17 is trading 28.1% above its estimated GF Value™ of $17.30.
GuruFocus considers Antero Midstream to be Modestly Overvalued.
Key valuation signals for AM:
Operating Margin %: 55.44% (near median its 10-year median of 56.04)
GF Value™: $17.30 vs. price of $22.17 (28.1% above fair value)
Industry Position: 708.2% above the Oil & Gas median (#28 of 916)
No single metric tells the full story. See the AM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Antero Midstream Corp is a midstream company that owns, operates, and develops midstream energy assets that service Antero Resources' production and completion activity in the Appalachian Basin, located in West Virginia and Ohio. The company has two operating segments: the Gathering and Processing segment, which includes a network of gathering pipelines and compressor stations that collect and process production from Antero Resources wells in West Virginia and Ohio, and the Water Handling segment, which includes two independent systems that deliver water from sources including the Ohio River, local reservoirs, and several regional waterways. The company derives a majority of its revenue from the Gathering and Processing segment.
81GF Score
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