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.
Highwater Ethanol LLC Operating Margin % Related Terms
Highwater Ethanol LLC Operating Margin % Historical Data
* Premium members only.
The historical data trend for Highwater Ethanol LLC'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.
HEOL vs BDCO, DLXY, FGPR: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Highwater Ethanol LLC'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.
Highwater Ethanol LLC Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Highwater Ethanol LLC's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Highwater Ethanol LLC'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.
Highwater Ethanol LLC's Operating Margin % for the fiscal year that ended in Oct. 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.
Highwater Ethanol LLC (HEOL) has a Operating Margin % of 21.36% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Highwater Ethanol LLC and its competitors. This is 484% above median its historical median of 3.66.
Is Highwater Ethanol LLC's Operating Margin % too high?
Highwater Ethanol LLC's current Operating Margin % of 21.36% is 484% above median its 10-year median of 3.66. The Oil & Gas industry median Operating Margin % is 6.86. Highwater Ethanol LLC's value of 21.36% is 211.4% above this industry median. Overall, Highwater Ethanol LLC has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does Highwater Ethanol LLC's Operating Margin % compare to BDCO and DLXY?
Highwater Ethanol LLC's Operating Margin % of 21.36% can be compared against companies in the Oil & Gas industry. The industry median Operating Margin % is 6.86. Highwater Ethanol LLC's value of 21.36% is 211.4% above this benchmark. While the company's 10-year median is 3.66 vs. the industry median of 6.86, Highwater Ethanol LLC 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. Highwater Ethanol LLC's current Operating Margin % of 21.36% is 211.4% 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 Highwater Ethanol LLC 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. Highwater Ethanol LLC's current Operating Margin % is 21.36%, which is 484% above median its own 10-year median of 3.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highwater Ethanol LLC stock overvalued right now?
Highwater Ethanol LLC (HEOL) has a current Operating Margin % of 21.36%. The stock's GF Value™ is $11,817.74, compared to a current price of $14,005.00 — trading 18.5% above its estimated fair value. The current Operating Margin % is 21.36%, which is 484% above median its 10-year median of 3.66 and 211.4% above the Oil & Gas industry median of 6.86. Highwater Ethanol LLC's overall GF Score™ is 32/100 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 Highwater Ethanol LLC (HEOL), the current Operating Margin % is 21.36% as of Apr. 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 Highwater Ethanol LLC (HEOL) Overvalued in 2026?
Based on GuruFocus' analysis, Highwater Ethanol LLC stock appears to be overvalued.
The current stock price of $14,005.00 is trading 18.5% above its estimated GF Value™ of $11,817.74.
Key valuation signals for HEOL:
Operating Margin %: 21.36% (484% above median its 10-year median of 3.66)
GF Value™: $11,817.74 vs. price of $14,005.00 (18.5% above fair value)
Industry Position: 211.4% above the Oil & Gas median
No single metric tells the full story. See the HEOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highwater Ethanol LLC is engaged in the production of ethanol and distillers grains at the plant. It focuses on the manufacturing and marketing of fuel-grade ethanol and the co-products of the ethanol production process. Its products include fuel-grade ethanol, distillers grains, and corn oil. The company produces and sells fuel ethanol and co-products of the fuel ethanol production process in the continental United States.
32GF Score
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