Canacol EnergyCNNEQ Operating Margin % is 45.98% as of Sep. 2025, which is 12% above its 10-year median of 40.88. The stock has 4 warning signs investors should review. Among 916 Oil & Gas companies, Canacol Energy ranks better than 95.2% on this metric.
Canacol Energy (OTCPK:CNNEQ) 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.
Canacol Energy Operating Margin % Related Terms
Canacol Energy Operating Margin % Historical Data
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The historical data trend for Canacol 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.
CNNEQ vs LEEN, SPOWF, BRLL: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Canacol 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.
Canacol Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Canacol Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Canacol 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.
Canacol Energy's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Canacol Energy (CNNEQ) has a Operating Margin % of 45.98% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Canacol Energy and its competitors. This is 12% above median its historical median of 40.88. According to the industry distribution chart, Canacol Energy ranks #44 out of 916 companies in the Oil & Gas industry, placing it in the top 4.8%.
Is Canacol Energy's Operating Margin % too high?
Canacol Energy's current Operating Margin % of 45.98% is 12% above median its 10-year median of 40.88. The Oil & Gas industry median Operating Margin % is 6.86. Canacol Energy's value of 45.98% is 570.3% above this industry median. Based on the distribution chart, Canacol Energy ranks #44 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers.
How does Canacol Energy's Operating Margin % compare to LEEN and SPOWF?
According to the Oil & Gas industry distribution chart, Canacol Energy ranks #44 out of 916 companies for Operating Margin %. This places Canacol Energy in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Canacol Energy's value of 45.98% is 570.3% above this benchmark. While the company's 10-year median is 40.88 vs. the industry median of 6.86, Canacol Energy 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. Canacol Energy's current Operating Margin % of 45.98% is 570.3% 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 Canacol 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. Canacol Energy's current Operating Margin % is 45.98%, which is 12% above median its own 10-year median of 40.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canacol Energy stock overvalued right now?
Based on GuruFocus' analysis, Canacol Energy (CNNEQ) is currently considered Possible Value Trap. The stock's GF Value™ is $3.25, compared to a current price of $0.01 — trading 99.7% below its estimated fair value. The current Operating Margin % is 45.98%, which is 12% above median its 10-year median of 40.88 and 570.3% above the Oil & Gas industry median of 6.86. 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 Canacol Energy (CNNEQ), the current Operating Margin % is 45.98% as of Sep. 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.
Canacol Energy Ltd is a natural gas and oil exploration and production company. The company operates in the Lower and Middle Magdalena Basins of Colombia.
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