Diversified Energy CoCHIX:DECL +3.20%61 Operating Margin % is 7.45% as of Dec. 2025, which is 49% below its 10-year median of 14.75. GuruFocus rates CHIX:DECL with a GF Score™ of 61/100 and a GF Value™ of £13.10 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 916 Oil & Gas companies, Diversified Energy Co ranks better than 67.47% on this metric.
Diversified Energy Co has recorded a loss in operating income at least once over the past 3 years.
Diversified Energy Co (CHIX:DECl) 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.
Diversified Energy Co Operating Margin % Related Terms
Diversified Energy Co Operating Margin % Historical Data
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The historical data trend for Diversified Energy Co'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.
CHIX:DECL vs UNTC, SLNG, SKYQ: Operating Margin % Comparison
For the Oil & Gas Integrated subindustry, Diversified Energy Co'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.
Diversified Energy Co Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diversified Energy Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Diversified Energy Co's Operating Margin % falls into.
Diversified Energy Co 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.
Diversified Energy Co'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.
Diversified Energy Co (CHIX:DECL) has a Operating Margin % of 7.45% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Diversified Energy Co and its competitors. This is 49% below median its historical median of 14.75. According to the industry distribution chart, Diversified Energy Co ranks #298 out of 916 companies in the Oil & Gas industry, placing it in the top 32.5%.
Is Diversified Energy Co's Operating Margin % too high?
Diversified Energy Co's current Operating Margin % of 7.45% is 49% below median its 10-year median of 14.75. The Oil & Gas industry median Operating Margin % is 6.86. Diversified Energy Co's value of 7.45% is 8.6% above this industry median. Based on the distribution chart, Diversified Energy Co ranks #298 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Diversified Energy Co has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diversified Energy Co's Operating Margin % compare to UNTC and SLNG?
According to the Oil & Gas industry distribution chart, Diversified Energy Co ranks #298 out of 916 companies for Operating Margin %. This puts Diversified Energy Co in the upper half of its industry. The industry median Operating Margin % is 6.86. Diversified Energy Co's value of 7.45% is 8.6% above this benchmark. While the company's 10-year median is 14.75 vs. the industry median of 6.86, Diversified Energy Co 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. Diversified Energy Co's current Operating Margin % of 7.45% is 8.6% 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 Diversified Energy Co 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. Diversified Energy Co's current Operating Margin % is 7.45%, which is 49% below median its own 10-year median of 14.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diversified Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Diversified Energy Co (CHIX:DECL) is currently considered Modestly Undervalued. The stock's GF Value™ is £13.10, compared to a current price of £10.00 — trading 23.7% below its estimated fair value. The current Operating Margin % is 7.45%, which is 49% below median its 10-year median of 14.75 and 8.6% above the Oil & Gas industry median of 6.86. Diversified Energy Co's overall GF Score™ is 61/100 with 10 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 Diversified Energy Co (CHIX:DECL), the current Operating Margin % is 7.45% 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 Diversified Energy Co (CHIX:DECL) Overvalued in 2026?
Based on GuruFocus' analysis, Diversified Energy Co stock appears to be undervalued.
The current stock price of £10.00 is trading 23.7% below its estimated GF Value™ of £13.10.
GuruFocus considers Diversified Energy Co to be Modestly Undervalued.
Key valuation signals for CHIX:DECL:
Operating Margin %: 7.45% (49% below median its 10-year median of 14.75)
GF Value™: £13.10 vs. price of £10.00 (23.7% below fair value)
Industry Position: 8.6% above the Oil & Gas median (#298 of 916)
No single metric tells the full story. See the CHIX:DECL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diversified Energy Co engaged in the production, transportation, and marketing of natural gas, NGLs, and oil, managing a diversified portfolio of mature, long-life assets located across the United States. The company derives revenues from the sale of oil, natural gas and natural gas liquids.
61GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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