Stonehorse EnergyASX:SHE Operating Margin % is -27.22% as of Dec. 2025. The stock has 3 warning signs investors should review. Among 916 Oil & Gas companies, Stonehorse Energy ranks better than 66.27% on this metric.
Stonehorse Energy Ltd had lost money in 67% of the time over the past 3quarters.
Stonehorse Energy (ASX:SHE) 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.
Stonehorse Energy Operating Margin % Related Terms
Stonehorse Energy Operating Margin % Historical Data
* Premium members only.
The historical data trend for Stonehorse Energy'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:SHE vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Stonehorse Energy'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.
Stonehorse Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Stonehorse Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Stonehorse Energy'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.
Stonehorse Energy'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.
Stonehorse Energy (ASX:SHE) has a Operating Margin % of -27.22% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Stonehorse Energy and its competitors. According to the industry distribution chart, Stonehorse Energy ranks #309 out of 916 companies in the Oil & Gas industry, placing it in the top 33.7%.
Is Stonehorse Energy's Operating Margin % too high?
Stonehorse Energy's current Operating Margin % is -27.22%. Based on the distribution chart, Stonehorse Energy ranks #309 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint.
How does Stonehorse Energy's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Stonehorse Energy ranks #309 out of 916 companies for Operating Margin %. This puts Stonehorse Energy in the upper 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 Stonehorse Energy 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. Stonehorse Energy's current Operating Margin % is -27.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stonehorse Energy stock overvalued right now?
Based on GuruFocus' analysis, Stonehorse Energy (ASX:SHE) is currently considered Modestly Overvalued. The stock's GF Value™ is A$0.01, compared to a current price of A$0.01 — trading 20% above its estimated fair value. The current Operating Margin % is -27.22%. 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 Stonehorse Energy (ASX:SHE), the current Operating Margin % is -27.22% 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.
Stonehorse Energy Ltd is an Australian oil and gas exploration and production company with working interests in a number of producing oil and gas assets located in Texas and Oklahoma, in the USA, and Alberta in Canada. The company holds interests in the Pine Cliff Caroline and the Wapiti wells in Canada, and various oil and gas wells in the United States, such as Burgess, Sutton, Henry Federal, Randolph, Jewell, Mitchell, Newberry, Thelma, etc. Additionally, it holds approximately twenty-five percent of working interest in the Myall Creek property located in the Surat Basin, Queensland. The company's reportable segments are Oil and gas, which generate the maximum revenue, and Corporate. Geographically, it generates maximum revenue from Canada, and the rest from the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:SHE has been successfully added to your 