Northern Oil & GasHAM:4LT1 +1.56%60 Operating Margin % is 28.02% as of Mar. 2026, which is 19% below its 10-year median of 34.71. GuruFocus rates HAM:4LT1 with a GF Score™ of 60/100 and a GF Value™ of €28.34 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 916 Oil & Gas companies, Northern Oil & Gas ranks better than 81.33% on this metric.
Northern Oil & Gas (HAM:4LT1) 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.
Northern Oil & Gas Operating Margin % Related Terms
Northern Oil & Gas Operating Margin % Historical Data
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The historical data trend for Northern Oil & Gas'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.
HAM:4LT1 vs MNR, TALO, BSM: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Northern Oil & Gas'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.
Northern Oil & Gas Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Northern Oil & Gas's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Northern Oil & Gas'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.
Northern Oil & Gas'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.
Northern Oil & Gas (HAM:4LT1) has a Operating Margin % of 28.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Northern Oil & Gas and its competitors. This is 19% below median its historical median of 34.71. According to the industry distribution chart, Northern Oil & Gas ranks #171 out of 916 companies in the Oil & Gas industry, placing it in the top 18.7%.
Is Northern Oil & Gas' Operating Margin % too high?
Northern Oil & Gas' current Operating Margin % of 28.02% is 19% below median its 10-year median of 34.71. The Oil & Gas industry median Operating Margin % is 6.86. Northern Oil & Gas' value of 28.02% is 308.5% above this industry median. Based on the distribution chart, Northern Oil & Gas ranks #171 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Northern Oil & Gas has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Northern Oil & Gas' Operating Margin % compare to MNR and TALO?
According to the Oil & Gas industry distribution chart, Northern Oil & Gas ranks #171 out of 916 companies for Operating Margin %. This places Northern Oil & Gas in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Northern Oil & Gas' value of 28.02% is 308.5% above this benchmark. While the company's 10-year median is 34.71 vs. the industry median of 6.86, Northern Oil & Gas 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. Northern Oil & Gas's current Operating Margin % of 28.02% is 308.5% 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 Northern Oil & Gas 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. Northern Oil & Gas's current Operating Margin % is 28.02%, which is 19% below median its own 10-year median of 34.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Oil & Gas stock overvalued right now?
Based on GuruFocus' analysis, Northern Oil & Gas (HAM:4LT1) is currently considered Possible Value Trap. The stock's GF Value™ is €28.34, compared to a current price of €16.98 — trading 40.1% below its estimated fair value. The current Operating Margin % is 28.02%, which is 19% below median its 10-year median of 34.71 and 308.5% above the Oil & Gas industry median of 6.86. Northern Oil & Gas' overall GF Score™ is 60/100 with 5 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 Northern Oil & Gas (HAM:4LT1), the current Operating Margin % is 28.02% 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 Northern Oil & Gas (HAM:4LT1) Overvalued in 2026?
Based on GuruFocus' analysis, Northern Oil & Gas stock appears to be undervalued.
The current stock price of €16.98 is trading 40.1% below its estimated GF Value™ of €28.34.
GuruFocus considers Northern Oil & Gas to be Possible Value Trap.
Key valuation signals for HAM:4LT1:
Operating Margin %: 28.02% (19% below median its 10-year median of 34.71)
GF Value™: €28.34 vs. price of €16.98 (40.1% below fair value)
Industry Position: 308.5% above the Oil & Gas median (#171 of 916)
No single metric tells the full story. See the HAM:4LT1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northern Oil & Gas Inc is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and natural gas properties. Its principal business is crude oil and natural gas exploration, development, and production. The company's oil and natural gas sales come from three geographic areas in the United States: the Williston Basin (North Dakota and Montana), the Permian Basin (New Mexico and Texas), the Uinta Basin, and the Appalachian Basin (Pennsylvania and Ohio).
60GF Score
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