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.
Geospace Technologies Operating Margin % Related Terms
Geospace Technologies Operating Margin % Historical Data
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The historical data trend for Geospace Technologies'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:OYO vs NCSM, DTI, DWSN: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Geospace Technologies'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.
Geospace Technologies Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Geospace Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Geospace Technologies'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.
Geospace Technologies's Operating Margin % for the fiscal year that ended in Sep. 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.
Geospace Technologies (FRA:OYO) has a Operating Margin % of -58.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Geospace Technologies and its competitors. According to the industry distribution chart, Geospace Technologies ranks #788 out of 916 companies in the Oil & Gas industry, placing it in the top 86%.
Is Geospace Technologies' Operating Margin % too high?
Geospace Technologies' current Operating Margin % is -58.08%. Based on the distribution chart, Geospace Technologies ranks #788 out of 916 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Geospace Technologies has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Geospace Technologies' Operating Margin % compare to NCSM and DTI?
According to the Oil & Gas industry distribution chart, Geospace Technologies ranks #788 out of 916 companies for Operating Margin %. This places Geospace Technologies in the lower half of its industry. The industry median Operating Margin % is 6.86. 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. 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 Geospace Technologies 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. Geospace Technologies's current Operating Margin % is -58.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Geospace Technologies stock overvalued right now?
Geospace Technologies (FRA:OYO) has a current Operating Margin % of -58.08%. The stock's GF Value™ is €8.25, compared to a current price of €5.65 — trading 31.5% below its estimated fair value. The current Operating Margin % is -58.08%. Geospace Technologies' overall GF Score™ is 56/100 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 Geospace Technologies (FRA:OYO), the current Operating Margin % is -58.08% 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 Geospace Technologies (FRA:OYO) Overvalued in 2026?
Based on GuruFocus' analysis, Geospace Technologies stock appears to be undervalued.
The current stock price of €5.65 is trading 31.5% below its estimated GF Value™ of €8.25.
Key valuation signals for FRA:OYO:
Operating Margin %: -58.08%
GF Value™: €8.25 vs. price of €5.65 (31.5% below fair value)
No single metric tells the full story. See the FRA:OYO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Geospace Technologies Corp is engaged in designing and manufacturing sophisticated technology solutions for applications in smart water management, energy exploration, as well as industrial and Internet of Things. Its seismic equipment is used to locate, characterize, and monitor hydrocarbon reservoirs and is also marketed for vibration monitoring, security, and geotechnical uses. The company also produces non-seismic products such as Hydroconn cables, imaging equipment, remote shutoff water valves, and IoT platforms, and provides contract manufacturing services. The company's business segments includes Smart Water, Energy Solutions and Intelligent Industrial. The majority of its revenue is generated from the Energy Solutions segment.
56GF Score
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