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.
Highwood Asset Management Operating Margin % Related Terms
Highwood Asset Management Operating Margin % Historical Data
* 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:7PD0 vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Highwood Asset Management'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.
Highwood Asset Management Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Highwood Asset Management's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Highwood Asset Management'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.
Highwood Asset Management'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.
Highwood Asset Management (FRA:7PD0) has a Operating Margin % of 31.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Highwood Asset Management and its competitors. According to the industry distribution chart, Highwood Asset Management ranks #225 out of 916 companies in the Oil & Gas industry, placing it in the top 24.6%.
Is Highwood Asset Management's Operating Margin % too high?
Highwood Asset Management's current Operating Margin % is 31.16%. The Oil & Gas industry median Operating Margin % is 6.86. Highwood Asset Management's value of 31.16% is 354.2% above this industry median. Based on the distribution chart, Highwood Asset Management ranks #225 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Highwood Asset Management has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Highwood Asset Management's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Highwood Asset Management ranks #225 out of 916 companies for Operating Margin %. This places Highwood Asset Management in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Highwood Asset Management's value of 31.16% is 354.2% above this benchmark. 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. Highwood Asset Management's current Operating Margin % of 31.16% is 354.2% 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 Highwood Asset Management 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. Highwood Asset Management's current Operating Margin % is 31.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highwood Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Highwood Asset Management (FRA:7PD0) is currently considered Fairly Valued. The stock's GF Value™ is €2.98, compared to a current price of €2.74 — trading 8.1% below its estimated fair value. The current Operating Margin % is 31.16% and 354.2% above the Oil & Gas industry median of 6.86. Highwood Asset Management's overall GF Score™ is 66/100 with 10 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 Highwood Asset Management (FRA:7PD0), the current Operating Margin % is 31.16% 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 Highwood Asset Management (FRA:7PD0) Overvalued in 2026?
Based on GuruFocus' analysis, Highwood Asset Management stock appears to be undervalued.
The current stock price of €2.74 is trading 8.1% below its estimated GF Value™ of €2.98.
GuruFocus considers Highwood Asset Management to be Fairly Valued.
Key valuation signals for FRA:7PD0:
Operating Margin %: 31.16%
GF Value™: €2.98 vs. price of €2.74 (8.1% below fair value)
Industry Position: 354.2% above the Oil & Gas median (#225 of 916)
No single metric tells the full story. See the FRA:7PD0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highwood Asset Management Ltd is an asset management entity overseeing various operations including clean energy transition subsectors with a focus on ESG it also looks at current activities in the industrial metals & minerals, oil production, and oil midstream spaces. The Company's current focus is the exploration and development of its oil and natural gas properties in Alberta. The company generates revenue from the exploration and development of oil and natural gas and the operation of midstream oil and gas infrastructure.
66GF Score
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