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.
Evolution Petroleum Operating Margin % Related Terms
Evolution Petroleum Operating Margin % Historical Data
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The historical data trend for Evolution Petroleum'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.
EPM vs GLND, EPSN, PED: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Evolution Petroleum'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.
Evolution Petroleum Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Evolution Petroleum's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Evolution Petroleum'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.
Evolution Petroleum'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.
Evolution Petroleum (EPM) has a Operating Margin % of -2.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Evolution Petroleum and its competitors. Over the past decade, Evolution Petroleum's Operating Margin % has ranged from 1.63 to 41.66. According to the industry distribution chart, Evolution Petroleum ranks #625 out of 916 companies in the Oil & Gas industry, placing it in the top 68.2%.
Is Evolution Petroleum's Operating Margin % too high?
Evolution Petroleum's current Operating Margin % is -2.77%. Over the past 10 years, this metric has ranged from a low of 1.63 to a high of 41.66. Based on the distribution chart, Evolution Petroleum ranks #625 out of 916 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Evolution Petroleum has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Evolution Petroleum's Operating Margin % compare to GLND and EPSN?
According to the Oil & Gas industry distribution chart, Evolution Petroleum ranks #625 out of 916 companies for Operating Margin %. This places Evolution Petroleum in the lower half of its industry. The industry median Operating Margin % is 6.86. Historically, Evolution Petroleum's own Operating Margin % has ranged from 1.63 to 41.66 over the past decade. 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 Evolution Petroleum 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. Evolution Petroleum's current Operating Margin % is -2.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Evolution Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Evolution Petroleum (EPM) is currently considered Modestly Undervalued. The stock's GF Value™ is $4.70, compared to a current price of $3.82 — trading 18.7% below its estimated fair value. The current Operating Margin % is -2.77%. Evolution Petroleum's overall GF Score™ is 75/100 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 Evolution Petroleum (EPM), the current Operating Margin % is -2.77% 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 Evolution Petroleum (EPM) Overvalued in 2026?
Based on GuruFocus' analysis, Evolution Petroleum stock appears to be undervalued.
The current stock price of $3.82 is trading 18.7% below its estimated GF Value™ of $4.70.
GuruFocus considers Evolution Petroleum to be Modestly Undervalued.
Key valuation signals for EPM:
Operating Margin %: -2.77%
GF Value™: $4.70 vs. price of $3.82 (18.7% below fair value)
No single metric tells the full story. See the EPM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Evolution Petroleum Corp is an independent energy company focused on owning and investing in onshore oil and natural gas properties across the United States. Its portfolio includes non-operated interests in various production fields such as CO2 enhanced oil recovery in Louisiana, secondary recovery production in Wyoming, and shale gas reservoirs in Texas and North Dakota. The company generates revenue from the production and sale of oil and natural gas, leveraging specialized technologies to extend reservoir life and enhance recoveries.
75GF Score
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