China Oilfield ServicesFRA:CO9 -2.80%79 Operating Margin % is 13.63% as of Mar. 2026, which is 25% above its 10-year median of 10.93. GuruFocus rates FRA:CO9 with a GF Score™ of 79/100 and a GF Value™ of €1.06 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 916 Oil & Gas companies, China Oilfield Services ranks better than 63.97% on this metric.
China Oilfield Services (FRA:CO9) 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.
China Oilfield Services Operating Margin % Related Terms
China Oilfield Services Operating Margin % Historical Data
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The historical data trend for China Oilfield Services'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:CO9 vs SLB, BKR, HAL: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, China Oilfield Services'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.
China Oilfield Services Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China Oilfield Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Oilfield Services's Operating Margin % falls into.
China Oilfield Services 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.
China Oilfield Services'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.
China Oilfield Services (FRA:CO9) has a Operating Margin % of 13.63% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on China Oilfield Services and its competitors. This is 25% above median its historical median of 10.93. According to the industry distribution chart, China Oilfield Services ranks #330 out of 916 companies in the Oil & Gas industry, placing it in the top 36%.
Is China Oilfield Services' Operating Margin % too high?
China Oilfield Services' current Operating Margin % of 13.63% is 25% above median its 10-year median of 10.93. The Oil & Gas industry median Operating Margin % is 6.86. China Oilfield Services' value of 13.63% is 98.7% above this industry median. Based on the distribution chart, China Oilfield Services ranks #330 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, China Oilfield Services has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Oilfield Services' Operating Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, China Oilfield Services ranks #330 out of 916 companies for Operating Margin %. This puts China Oilfield Services in the upper half of its industry. The industry median Operating Margin % is 6.86. China Oilfield Services' value of 13.63% is 98.7% above this benchmark. While the company's 10-year median is 10.93 vs. the industry median of 6.86, China Oilfield Services 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. China Oilfield Services's current Operating Margin % of 13.63% is 98.7% 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 China Oilfield Services 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. China Oilfield Services's current Operating Margin % is 13.63%, which is 25% above median its own 10-year median of 10.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Oilfield Services stock overvalued right now?
Based on GuruFocus' analysis, China Oilfield Services (FRA:CO9) is currently considered Significantly Undervalued. The stock's GF Value™ is €1.06, compared to a current price of €0.70 — trading 34.4% below its estimated fair value. The current Operating Margin % is 13.63%, which is 25% above median its 10-year median of 10.93 and 98.7% above the Oil & Gas industry median of 6.86. China Oilfield Services' overall GF Score™ is 79/100 with 4 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 China Oilfield Services (FRA:CO9), the current Operating Margin % is 13.63% 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 China Oilfield Services (FRA:CO9) Overvalued in 2026?
Based on GuruFocus' analysis, China Oilfield Services stock appears to be undervalued.
The current stock price of €0.70 is trading 34.4% below its estimated GF Value™ of €1.06.
GuruFocus considers China Oilfield Services to be Significantly Undervalued.
Key valuation signals for FRA:CO9:
Operating Margin %: 13.63% (25% above median its 10-year median of 10.93)
GF Value™: €1.06 vs. price of €0.70 (34.4% below fair value)
Industry Position: 98.7% above the Oil & Gas median (#330 of 916)
No single metric tells the full story. See the FRA:CO9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Oilfield Services Ltd is engaged in the provision of oilfield services including drilling services, well services, marine support services, and geophysical acquisition and surveying services. It operates in four segments namely the drilling services segment offers oilfield drilling services, the well services segment offers logging and downhole services, the marine support services segment is engaged in the transportation of materials, supplies, and personnel to offshore facilities, moving and positioning drilling structures, and the geophysical acquisition and surveying services segment is engaged in the provision of offshore seismic data acquisition and marine surveying. It generates the majority of its revenue from Well services segment.
79GF Score
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