Dorchester Minerals LPDMLP -2.25%85 Operating Margin % is 49.49% as of Mar. 2026, which is 26% below its 10-year median of 67.02. GuruFocus rates DMLP with a GF Score™ of 85/100 and a GF Value™ of $25.46 (Fairly Valued). The stock has 9 warning signs investors should review. Among 916 Oil & Gas companies, Dorchester Minerals LP ranks better than 91.38% on this metric.
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.
Dorchester Minerals LP Operating Margin % Related Terms
Dorchester Minerals LP Operating Margin % Historical Data
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The historical data trend for Dorchester Minerals LP'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.
DMLP vs KRP, KOS, TBN: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Dorchester Minerals LP'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.
Dorchester Minerals LP Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Dorchester Minerals LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dorchester Minerals LP'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.
Dorchester Minerals LP'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.
Dorchester Minerals LP (DMLP) has a Operating Margin % of 49.49% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dorchester Minerals LP and its competitors. This is 26% below median its historical median of 67.02. Over the past decade, Dorchester Minerals LP's Operating Margin % has ranged from 37.53 to 76.47. According to the industry distribution chart, Dorchester Minerals LP ranks #79 out of 916 companies in the Oil & Gas industry, placing it in the top 8.6%.
Is Dorchester Minerals LP's Operating Margin % too high?
Dorchester Minerals LP's current Operating Margin % of 49.49% is 26% below median its 10-year median of 67.02. Over the past 10 years, this metric has ranged from a low of 37.53 to a high of 76.47. The Oil & Gas industry median Operating Margin % is 6.86. Dorchester Minerals LP's value of 49.49% is 621.4% above this industry median. Based on the distribution chart, Dorchester Minerals LP ranks #79 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Dorchester Minerals LP has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dorchester Minerals LP's Operating Margin % compare to KRP and KOS?
According to the Oil & Gas industry distribution chart, Dorchester Minerals LP ranks #79 out of 916 companies for Operating Margin %. This places Dorchester Minerals LP in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Dorchester Minerals LP's value of 49.49% is 621.4% above this benchmark. Historically, Dorchester Minerals LP's own Operating Margin % has ranged from 37.53 to 76.47 over the past decade. While the company's 10-year median is 67.02 vs. the industry median of 6.86, Dorchester Minerals LP 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. Dorchester Minerals LP's current Operating Margin % of 49.49% is 621.4% 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 Dorchester Minerals LP 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. Dorchester Minerals LP's current Operating Margin % is 49.49%, which is 26% below median its own 10-year median of 67.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dorchester Minerals LP stock overvalued right now?
Based on GuruFocus' analysis, Dorchester Minerals LP (DMLP) is currently considered Fairly Valued. The stock's GF Value™ is $25.46, compared to a current price of $25.62 — trading 0.6% above its estimated fair value. The current Operating Margin % is 49.49%, which is 26% below median its 10-year median of 67.02 and 621.4% above the Oil & Gas industry median of 6.86. Dorchester Minerals LP's overall GF Score™ is 85/100 with 9 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 Dorchester Minerals LP (DMLP), the current Operating Margin % is 49.49% as of Mar. 2026. 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 Dorchester Minerals LP (DMLP) Overvalued in 2026?
Based on GuruFocus' analysis, Dorchester Minerals LP stock appears to be overvalued.
The current stock price of $25.62 is trading 0.6% above its estimated GF Value™ of $25.46.
GuruFocus considers Dorchester Minerals LP to be Fairly Valued.
Key valuation signals for DMLP:
Operating Margin %: 49.49% (26% below median its 10-year median of 67.02)
GF Value™: $25.46 vs. price of $25.62 (0.6% above fair value)
Industry Position: 621.4% above the Oil & Gas median (#79 of 916)
No single metric tells the full story. See the DMLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dorchester Minerals LP operates as the owner of producing and non-producing crude oil and natural gas mineral, royalty, overriding royalty, net profits, and leasehold interests. The company generates revenues from royalties, net profits interests, lease bonuses, and others.
85GF Score
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