Summit MidstreamFRA:D27 -0.59%64 Operating Margin % is 12.20% as of Mar. 2026, which is 32% below its 10-year median of 17.83. GuruFocus rates FRA:D27 with a GF Score™ of 64/100 and a GF Value™ of €25.03. The stock has 9 warning signs investors should review. Among 921 Oil & Gas companies, Summit Midstream ranks better than 67.64% on this metric.
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.
Summit Midstream Operating Margin % Related Terms
Summit Midstream Operating Margin % Historical Data
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The historical data trend for Summit Midstream'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:D27 vs KNOP, IMPP, NFE: Operating Margin % Comparison
For the Oil & Gas Midstream subindustry, Summit Midstream'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.
Summit Midstream Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Summit Midstream's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Summit Midstream'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.
Summit Midstream'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.
Summit Midstream (FRA:D27) has a Operating Margin % of 12.20% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Summit Midstream and its competitors. This is 32% below median its historical median of 17.83. Over the past decade, Summit Midstream's Operating Margin % has ranged from 12.07 to 34.26. According to the industry distribution chart, Summit Midstream ranks #298 out of 921 companies in the Oil & Gas industry, placing it in the top 32.4%.
Is Summit Midstream's Operating Margin % too high?
Summit Midstream's current Operating Margin % of 12.20% is 32% below median its 10-year median of 17.83. Over the past 10 years, this metric has ranged from a low of 12.07 to a high of 34.26. The Oil & Gas industry median Operating Margin % is 6.85. Summit Midstream's value of 12.20% is 78.1% above this industry median. Based on the distribution chart, Summit Midstream ranks #298 out of 921 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Summit Midstream has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Summit Midstream's Operating Margin % compare to KNOP and IMPP?
According to the Oil & Gas industry distribution chart, Summit Midstream ranks #298 out of 921 companies for Operating Margin %. This puts Summit Midstream in the upper half of its industry. The industry median Operating Margin % is 6.85. Summit Midstream's value of 12.20% is 78.1% above this benchmark. Historically, Summit Midstream's own Operating Margin % has ranged from 12.07 to 34.26 over the past decade. While the company's 10-year median is 17.83 vs. the industry median of 6.85, Summit Midstream 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 6.85, based on 921 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. Summit Midstream's current Operating Margin % of 12.20% is 78.1% 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 Summit Midstream and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Summit Midstream's current Operating Margin % is 12.20%, which is 32% below median its own 10-year median of 17.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Summit Midstream stock overvalued right now?
Summit Midstream (FRA:D27) has a current Operating Margin % of 12.20%. The stock's GF Value™ is €25.03, compared to a current price of €25.15 — trading 0.5% above its estimated fair value. The current Operating Margin % is 12.20%, which is 32% below median its 10-year median of 17.83 and 78.1% above the Oil & Gas industry median of 6.85. Summit Midstream's overall GF Score™ is 64/100 with 9 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 Summit Midstream (FRA:D27), the current Operating Margin % is 12.20% 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 Summit Midstream (FRA:D27) Overvalued in 2026?
Based on GuruFocus' analysis, Summit Midstream stock appears to be overvalued.
The current stock price of €25.15 is trading 0.5% above its estimated GF Value™ of €25.03.
Key valuation signals for FRA:D27:
Operating Margin %: 12.20% (32% below median its 10-year median of 17.83)
GF Value™: €25.03 vs. price of €25.15 (0.5% above fair value)
Industry Position: 78.1% above the Oil & Gas median (#298 of 921)
No single metric tells the full story. See the FRA:D27 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Summit Midstream Corp is a value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets strategically located in unconventional resource basins, shale formations, in the continental U.S. It currently operates natural gas, crude oil and produced water gathering systems in various unconventional resource basins including the Williston Basin, DJ Basin, Barnett Shale, Piceance Basin, Permian Basin, and the Arkoma Basin. The company's reportable segments are: Rockies, Permian, Mid-Con, Piceance, and Northeast. Maximum revenue is generated from the Mid-Con segment. Summit generates revenue mainly from natural gas, NGLs, and condensate sales, and the provision of gathering and related services.
64GF Score
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