Indonesia Energy (AMEX:INDO) 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.
Indonesia Energy Operating Margin % Related Terms
Indonesia Energy Operating Margin % Historical Data
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The historical data trend for Indonesia Energy'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.
INDO vs VOC, USEG, RSRV: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Indonesia Energy'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.
Indonesia Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Indonesia Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Indonesia Energy'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.
Indonesia Energy'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.
Indonesia Energy (INDO) has a Operating Margin % of -261.93% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Indonesia Energy and its competitors. According to the industry distribution chart, Indonesia Energy ranks #852 out of 916 companies in the Oil & Gas industry, placing it in the top 93%.
Is Indonesia Energy's Operating Margin % too high?
Indonesia Energy's current Operating Margin % is -261.93%. Based on the distribution chart, Indonesia Energy ranks #852 out of 916 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Indonesia Energy has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Indonesia Energy's Operating Margin % compare to VOC and USEG?
According to the Oil & Gas industry distribution chart, Indonesia Energy ranks #852 out of 916 companies for Operating Margin %. This places Indonesia Energy 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 Indonesia Energy 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. Indonesia Energy's current Operating Margin % is -261.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indonesia Energy stock overvalued right now?
Based on GuruFocus' analysis, Indonesia Energy (INDO) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.29, compared to a current price of $2.65 — trading 105.4% above its estimated fair value. The current Operating Margin % is -261.93%. Indonesia Energy's overall GF Score™ is 50/100 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 Indonesia Energy (INDO), the current Operating Margin % is -261.93% as of Dec. 2025. 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 Indonesia Energy (INDO) Overvalued in 2026?
Based on GuruFocus' analysis, Indonesia Energy stock appears to be overvalued.
The current stock price of $2.65 is trading 105.4% above its estimated GF Value™ of $1.29.
GuruFocus considers Indonesia Energy to be Significantly Overvalued.
Key valuation signals for INDO:
Operating Margin %: -261.93%
GF Value™: $1.29 vs. price of $2.65 (105.4% above fair value)
No single metric tells the full story. See the INDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indonesia Energy Corp Ltd is an oil and gas exploration and production company focused on Indonesia. The company is an independent energy company engaged in the oil and gas business and holds two oil and gas assets through its subsidiaries in Indonesia: The Kruh Block and the Citarum Block. It has also identified a potential third exploration block known as the Rangkas area. . Its portfolio consists of Kruh Block and Citarum Block. The company generates its revenue from oil and gas sales.
50GF Score
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