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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.
ProPetro Holding Operating Margin % Related Terms
ProPetro Holding Operating Margin % Historical Data
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The historical data trend for ProPetro Holding'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:2PG vs HLX, AESI, VTOL: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, ProPetro Holding'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.
ProPetro Holding Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, ProPetro Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ProPetro Holding'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.
ProPetro Holding'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.
ProPetro Holding (FRA:2PG) has a Operating Margin % of -1.56% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ProPetro Holding and its competitors. According to the industry distribution chart, ProPetro Holding ranks #713 out of 926 companies in the Oil & Gas industry, placing it in the top 77%.
Is ProPetro Holding's Operating Margin % too high?
ProPetro Holding's current Operating Margin % is -1.56%. Based on the distribution chart, ProPetro Holding ranks #713 out of 926 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, ProPetro Holding has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ProPetro Holding's Operating Margin % compare to HLX and AESI?
According to the Oil & Gas industry distribution chart, ProPetro Holding ranks #713 out of 926 companies for Operating Margin %. This places ProPetro Holding in the lower half of its industry. The industry median Operating Margin % is 7.63. 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 7.63, based on 926 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 ProPetro Holding and its competitors. For the Oil & Gas industry, the median Operating Margin % is 7.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ProPetro Holding's current Operating Margin % is -1.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ProPetro Holding stock overvalued right now?
Based on GuruFocus' analysis, ProPetro Holding (FRA:2PG) is currently considered Significantly Overvalued. The stock's GF Value™ is €5.53, compared to a current price of €10.50 — trading 89.9% above its estimated fair value. The current Operating Margin % is -1.56%. ProPetro Holding's overall GF Score™ is 68/100 with 3 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 ProPetro Holding (FRA:2PG), the current Operating Margin % is -1.56% 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 ProPetro Holding (FRA:2PG) Overvalued in 2026?
Based on GuruFocus' analysis, ProPetro Holding stock appears to be overvalued.
The current stock price of €10.50 is trading 89.9% above its estimated GF Value™ of €5.53.
GuruFocus considers ProPetro Holding to be Significantly Overvalued.
Key valuation signals for FRA:2PG:
Operating Margin %: -1.56%
GF Value™: €5.53 vs. price of €10.50 (89.9% above fair value)
No single metric tells the full story. See the FRA:2PG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ProPetro Holding Corp is an integrated energy service company located in Midland, Texas, focused on providing hydraulic fracturing, wireline, and other complementary energy and power generation services to upstream oil and gas companies engaged in the E&P of North American oil and natural gas resources. The company's operations are focused in the Permian Basin, where it have cultivated longstanding customer relationships with some of the region's active and well-capitalized E&P companies. The company's operating segments: Hydraulic Fracturing, Wireline, Cementing and Power Generation, the majority of revenue from Hydraulic Fracturing.
68GF 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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