High Peak RoyaltiesASX:HPR Operating Margin % is -106.87% as of Dec. 2025. The stock has 3 warning signs investors should review. Among 916 Oil & Gas companies, High Peak Royalties ranks worse than 87.45% on this metric.
High Peak Royalties (ASX:HPR) 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.
High Peak Royalties Operating Margin % Related Terms
High Peak Royalties Operating Margin % Historical Data
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The historical data trend for High Peak Royalties'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.
ASX:HPR vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, High Peak Royalties'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.
High Peak Royalties Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, High Peak Royalties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where High Peak Royalties's Operating Margin % falls into.
High Peak Royalties 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.
High Peak Royalties's Operating Margin % for the fiscal year that ended in Jun. 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.
High Peak Royalties (ASX:HPR) has a Operating Margin % of -106.87% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on High Peak Royalties and its competitors. According to the industry distribution chart, High Peak Royalties ranks #801 out of 916 companies in the Oil & Gas industry, placing it in the top 87.4%.
Is High Peak Royalties' Operating Margin % too high?
High Peak Royalties' current Operating Margin % is -106.87%. Based on the distribution chart, High Peak Royalties ranks #801 out of 916 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers.
How does High Peak Royalties' Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, High Peak Royalties ranks #801 out of 916 companies for Operating Margin %. This places High Peak Royalties in the lower half of its industry. The industry median Operating Margin % is 6.86. 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. 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 High Peak Royalties 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. High Peak Royalties's current Operating Margin % is -106.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is High Peak Royalties stock overvalued right now?
Based on GuruFocus' analysis, High Peak Royalties (ASX:HPR) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.06, compared to a current price of A$0.09 — trading 51.7% above its estimated fair value. The current Operating Margin % is -106.87%. 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 High Peak Royalties (ASX:HPR), the current Operating Margin % is -106.87% as of Dec. 2025. 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.
High Peak Royalties Ltd is engaged in the acquisition of royalty and exploration interests in oil and gas assets, predominantly in Australia and the United States. Geographically, it operates in the USA and Australia and generates maximum revenue from the United States. The company has royalties over 20 oil and gas permits in Australia, over 2,000 wells in the USA, and is the operator of four geothermal permit interests.
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