Matador Resources CoFRA:7MR +0.39%79 Operating Margin % is 33.64% as of Mar. 2026, which is 1% below its 10-year median of 34.01. GuruFocus rates FRA:7MR with a GF Score™ of 79/100 and a GF Value™ of €52.56 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 916 Oil & Gas companies, Matador Resources Co ranks better than 85.48% on this metric.
Matador Resources Co (FRA:7MR) 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.
Matador Resources Co Operating Margin % Related Terms
Matador Resources Co Operating Margin % Historical Data
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The historical data trend for Matador Resources Co'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:7MR vs SM, CHRD, CRC: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Matador Resources Co'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.
Matador Resources Co Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Matador Resources Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Matador Resources Co's Operating Margin % falls into.
Matador Resources Co Operating Margin % Calculation
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.
Matador Resources Co'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.
Matador Resources Co (FRA:7MR) has a Operating Margin % of 33.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Matador Resources Co and its competitors. This is near median its historical median of 34.01. Over the past decade, Matador Resources Co's Operating Margin % has ranged from 4.53 to 59.37. According to the industry distribution chart, Matador Resources Co ranks #133 out of 916 companies in the Oil & Gas industry, placing it in the top 14.5%.
Is Matador Resources Co's Operating Margin % too high?
Matador Resources Co's current Operating Margin % of 33.64% is near median its 10-year median of 34.01. Over the past 10 years, this metric has ranged from a low of 4.53 to a high of 59.37. The Oil & Gas industry median Operating Margin % is 6.86. Matador Resources Co's value of 33.64% is 390.4% above this industry median. Based on the distribution chart, Matador Resources Co ranks #133 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Matador Resources Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Matador Resources Co's Operating Margin % compare to SM and CHRD?
According to the Oil & Gas industry distribution chart, Matador Resources Co ranks #133 out of 916 companies for Operating Margin %. This places Matador Resources Co in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Matador Resources Co's value of 33.64% is 390.4% above this benchmark. Historically, Matador Resources Co's own Operating Margin % has ranged from 4.53 to 59.37 over the past decade. While the company's 10-year median is 34.01 vs. the industry median of 6.86, Matador Resources Co 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. Matador Resources Co's current Operating Margin % of 33.64% is 390.4% 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 Matador Resources Co 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. Matador Resources Co's current Operating Margin % is 33.64%, which is near median its own 10-year median of 34.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Matador Resources Co stock overvalued right now?
Based on GuruFocus' analysis, Matador Resources Co (FRA:7MR) is currently considered Modestly Undervalued. The stock's GF Value™ is €52.56, compared to a current price of €43.79 — trading 16.7% below its estimated fair value. The current Operating Margin % is 33.64%, which is near median its 10-year median of 34.01 and 390.4% above the Oil & Gas industry median of 6.86. Matador Resources Co's overall GF Score™ is 79/100 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 Matador Resources Co (FRA:7MR), the current Operating Margin % is 33.64% 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 Matador Resources Co (FRA:7MR) Overvalued in 2026?
Based on GuruFocus' analysis, Matador Resources Co stock appears to be undervalued.
The current stock price of €43.79 is trading 16.7% below its estimated GF Value™ of €52.56.
GuruFocus considers Matador Resources Co to be Modestly Undervalued.
Key valuation signals for FRA:7MR:
Operating Margin %: 33.64% (near median its 10-year median of 34.01)
GF Value™: €52.56 vs. price of €43.79 (16.7% below fair value)
Industry Position: 390.4% above the Oil & Gas median (#133 of 916)
No single metric tells the full story. See the FRA:7MR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company's assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business. The Company has two reportable business segments: exploration and production and midstream. The company generates majority of its revenue from the exploration and production segment.
79GF Score
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