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Liberty EnergyFRA:2LO -2.35%68 Operating Margin % is 2.27% as of Jun. 2026, which is 68% below its 10-year median of 7.12. GuruFocus rates FRA:2LO with a GF Score™ of 68/100 and a GF Value™ of €16.33 (Fairly Valued). The stock has 7 warning signs investors should review. Among 924 Oil & Gas companies, Liberty Energy ranks worse than 69.81% on this metric.
Liberty Energy (FRA:2LO) 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.
Liberty Energy Operating Margin % Related Terms
Liberty Energy Operating Margin % Historical Data
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The historical data trend for Liberty 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.
FRA:2LO vs NESR, WTTR, SEI: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Liberty 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.
Liberty Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Liberty Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Liberty 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.
Liberty Energy'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.
Liberty Energy (FRA:2LO) has a Operating Margin % of 2.27% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Liberty Energy and its competitors. This is 68% below median its historical median of 7.12. According to the industry distribution chart, Liberty Energy ranks #645 out of 924 companies in the Oil & Gas industry, placing it in the top 69.8%.
Is Liberty Energy's Operating Margin % too high?
Liberty Energy's current Operating Margin % of 2.27% is 68% below median its 10-year median of 7.12. The Oil & Gas industry median Operating Margin % is 7.17. Liberty Energy's value of 2.27% is 68.3% below this industry median. Based on the distribution chart, Liberty Energy ranks #645 out of 924 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Liberty Energy has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Liberty Energy's Operating Margin % compare to NESR and WTTR?
According to the Oil & Gas industry distribution chart, Liberty Energy ranks #645 out of 924 companies for Operating Margin %. This places Liberty Energy in the lower half of its industry. The industry median Operating Margin % is 7.17. Liberty Energy's value of 2.27% is 68.3% below this benchmark. While the company's 10-year median is 7.12 vs. the industry median of 7.17, Liberty Energy has consistently been below 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 7.17, based on 924 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. Liberty Energy's current Operating Margin % of 2.27% is 68.3% below 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 Liberty Energy and its competitors. For the Oil & Gas industry, the median Operating Margin % is 7.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Liberty Energy's current Operating Margin % is 2.27%, which is 68% below median its own 10-year median of 7.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liberty Energy stock overvalued right now?
Based on GuruFocus' analysis, Liberty Energy (FRA:2LO) is currently considered Fairly Valued. The stock's GF Value™ is €16.33, compared to a current price of €16.60 — trading 1.7% above its estimated fair value. The current Operating Margin % is 2.27%, which is 68% below median its 10-year median of 7.12 and 68.3% below the Oil & Gas industry median of 7.17. Liberty Energy's overall GF Score™ is 68/100 with 7 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 Liberty Energy (FRA:2LO), the current Operating Margin % is 2.27% as of Jun. 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 Liberty Energy (FRA:2LO) Overvalued in 2026?
Based on GuruFocus' analysis, Liberty Energy stock appears to be overvalued.
The current stock price of €16.60 is trading 1.7% above its estimated GF Value™ of €16.33.
GuruFocus considers Liberty Energy to be Fairly Valued.
Key valuation signals for FRA:2LO:
Operating Margin %: 2.27% (68% below median its 10-year median of 7.12)
GF Value™: €16.33 vs. price of €16.60 (1.7% above fair value)
Industry Position: 68.3% below the Oil & Gas median (#645 of 924)
No single metric tells the full story. See the FRA:2LO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Liberty Energy Inc is a integrated energy services and technology company focused on providing hydraulic fracturing services and related technologies to onshore oil and natural gas exploration and production (E&P) companies. The Company offers customers with hydraulic fracturing services, together with complementary services including wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods (including sand mine operations), and technologies to facilitate lower emission completions, thereby helping customers reduce emissions profile. The company provides services across USA and Canada.
68GF Score
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