Horizon OilASX:HZN -2.38%49 Operating Margin % is 10.30% as of Dec. 2025, which is 66% below its 10-year median of 30.23. GuruFocus rates ASX:HZN with a GF Score™ of 49/100 and a GF Value™ of A$0.15 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 916 Oil & Gas companies, Horizon Oil ranks better than 62.66% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Horizon Oil's Operating Income for the
six
months ended in Dec. 2025 was A$6.9 Mil. Horizon Oil's Revenue for the
six
months ended in Dec. 2025 was A$67.2 Mil. Therefore, Horizon Oil's Operating Margin % for the quarter that ended in Dec. 2025 was 10.30%.
The historical rank and industry rank for Horizon Oil's Operating Margin % or its related term are showing as below:
ASX:HZN'
s Operating Margin % Range Over the Past 10 Years
Min: -284.31 Med: 30.23 Max: 44.31
Current: 11.83
ASX:HZN's Operating Margin % is ranked better than 62.66% of 916
companies
in the Oil & Gas industry
Industry Median: 6.86
vs ASX:HZN: 11.83
Horizon Oil's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Horizon Oil's Operating Income for the
six
months ended in Dec. 2025 was A$6.9 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$16.7 Mil.
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.
Horizon Oil Operating Margin % Related Terms
Horizon Oil Operating Margin % Historical Data
* Premium members only.
The historical data trend for Horizon Oil'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:HZN vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Horizon Oil'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.
Horizon Oil Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Horizon Oil's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Horizon Oil'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.
Horizon Oil'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.
Horizon Oil (ASX:HZN) has a Operating Margin % of 10.30% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Horizon Oil and its competitors. This is 66% below median its historical median of 30.23. According to the industry distribution chart, Horizon Oil ranks #342 out of 916 companies in the Oil & Gas industry, placing it in the top 37.3%.
Is Horizon Oil's Operating Margin % too high?
Horizon Oil's current Operating Margin % of 10.30% is 66% below median its 10-year median of 30.23. The Oil & Gas industry median Operating Margin % is 6.86. Horizon Oil's value of 10.30% is 50.1% above this industry median. Based on the distribution chart, Horizon Oil ranks #342 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Horizon Oil has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Horizon Oil's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Horizon Oil ranks #342 out of 916 companies for Operating Margin %. This puts Horizon Oil in the upper half of its industry. The industry median Operating Margin % is 6.86. Horizon Oil's value of 10.30% is 50.1% above this benchmark. While the company's 10-year median is 30.23 vs. the industry median of 6.86, Horizon Oil 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. Horizon Oil's current Operating Margin % of 10.30% is 50.1% 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 Horizon Oil 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. Horizon Oil's current Operating Margin % is 10.30%, which is 66% below median its own 10-year median of 30.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Horizon Oil stock overvalued right now?
Based on GuruFocus' analysis, Horizon Oil (ASX:HZN) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.15, compared to a current price of A$0.21 — trading 36.7% above its estimated fair value. The current Operating Margin % is 10.30%, which is 66% below median its 10-year median of 30.23 and 50.1% above the Oil & Gas industry median of 6.86. Horizon Oil's overall GF Score™ is 49/100 with 6 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 Horizon Oil (ASX:HZN), the current Operating Margin % is 10.30% 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.
Is Horizon Oil (ASX:HZN) Overvalued in 2026?
Based on GuruFocus' analysis, Horizon Oil stock appears to be overvalued.
The current stock price of A$0.21 is trading 36.7% above its estimated GF Value™ of A$0.15.
GuruFocus considers Horizon Oil to be Significantly Overvalued.
Key valuation signals for ASX:HZN:
Operating Margin %: 10.30% (66% below median its 10-year median of 30.23)
GF Value™: A$0.15 vs. price of A$0.21 (36.7% above fair value)
Industry Position: 50.1% above the Oil & Gas median (#342 of 916)
No single metric tells the full story. See the ASX:HZN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Horizon Oil Ltd is engaged in petroleum exploration, development, and production. The company operates in three segments: China development, New Zealand development, and Australia development. It generates maximum revenue from the China development segment, which is involved in developing and producing crude oil from the Block 22/12-WZ6-12, WZ12-8W and WZ12-8E oil field developments and in the exploration and evaluation of hydrocarbons within Block 22/12. The New Zealand development segment is currently involved in developing and producing crude oil from the Maari/Manaia oil field development, and the Australia development segment is engaged in developing and producing oil and gas from the Mereenie OL4 and OL5 oil and gas fields.
49GF Score
Get the complete analysis for ASX:HZN
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:HZN has been successfully added to your 
