Oil & Gas Development CoKAR:OGDC +0.53%86 Operating Margin % is 47.34% as of Mar. 2026, which is 1% above its 10-year median of 46.96. GuruFocus rates KAR:OGDC with a GF Score™ of 86/100 and a GF Value™ of ₨170.61 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 916 Oil & Gas companies, Oil & Gas Development Co ranks better than 92.69% on this metric.
Oil & Gas Development Co (KAR:OGDC) 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.
Oil & Gas Development Co Operating Margin % Related Terms
Oil & Gas Development Co Operating Margin % Historical Data
* 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.
KAR:OGDC vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Oil & Gas Development Co'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.
Oil & Gas Development Co Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Oil & Gas Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Oil & Gas Development Co's Operating Margin % falls into.
Oil & Gas Development Co Operating Margin % Calculation
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.
Oil & Gas Development Co's Operating Margin % for the fiscal year that ended in Jun. 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.
Oil & Gas Development Co (KAR:OGDC) has a Operating Margin % of 47.34% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Oil & Gas Development Co and its competitors. This is near median its historical median of 46.96. Over the past decade, Oil & Gas Development Co's Operating Margin % has ranged from 40.11 to 54.90. According to the industry distribution chart, Oil & Gas Development Co ranks #67 out of 916 companies in the Oil & Gas industry, placing it in the top 7.3%.
Is Oil & Gas Development Co's Operating Margin % too high?
Oil & Gas Development Co's current Operating Margin % of 47.34% is near median its 10-year median of 46.96. Over the past 10 years, this metric has ranged from a low of 40.11 to a high of 54.90. The Oil & Gas industry median Operating Margin % is 6.86. Oil & Gas Development Co's value of 47.34% is 590.1% above this industry median. Based on the distribution chart, Oil & Gas Development Co ranks #67 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Oil & Gas Development Co has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Oil & Gas Development Co's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Oil & Gas Development Co ranks #67 out of 916 companies for Operating Margin %. This places Oil & Gas Development Co in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Oil & Gas Development Co's value of 47.34% is 590.1% above this benchmark. Historically, Oil & Gas Development Co's own Operating Margin % has ranged from 40.11 to 54.90 over the past decade. While the company's 10-year median is 46.96 vs. the industry median of 6.86, Oil & Gas Development Co 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. Oil & Gas Development Co's current Operating Margin % of 47.34% is 590.1% 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 Oil & Gas Development Co 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. Oil & Gas Development Co's current Operating Margin % is 47.34%, which is near median its own 10-year median of 46.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oil & Gas Development Co stock overvalued right now?
Based on GuruFocus' analysis, Oil & Gas Development Co (KAR:OGDC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨170.61, compared to a current price of ₨339.96 — trading 99.3% above its estimated fair value. The current Operating Margin % is 47.34%, which is near median its 10-year median of 46.96 and 590.1% above the Oil & Gas industry median of 6.86. Oil & Gas Development Co's overall GF Score™ is 86/100 with 7 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 Oil & Gas Development Co (KAR:OGDC), the current Operating Margin % is 47.34% 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 Oil & Gas Development Co (KAR:OGDC) Overvalued in 2026?
Based on GuruFocus' analysis, Oil & Gas Development Co stock appears to be overvalued.
The current stock price of ₨339.96 is trading 99.3% above its estimated GF Value™ of ₨170.61.
GuruFocus considers Oil & Gas Development Co to be Significantly Overvalued.
Key valuation signals for KAR:OGDC:
Operating Margin %: 47.34% (near median its 10-year median of 46.96)
GF Value™: ₨170.61 vs. price of ₨339.96 (99.3% above fair value)
Industry Position: 590.1% above the Oil & Gas median (#67 of 916)
No single metric tells the full story. See the KAR:OGDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oil & Gas Development Co Ltd is a Pakistani state-owned oil and gas exploration and production company. It operates a broad portfolio of oil and gas fields across Pakistan, focusing on exploring, developing, producing, and selling crude oil, natural gas, liquefied petroleum gas, and sulfur. The company generates revenue through the sale of these petroleum products, supplying sectors like power generation, fertilizer, and distribution companies. The company also pursues opportunities to expand domestically and internationally, including involvement in mining and energy projects beyond Pakistan.
86GF Score
Get the complete analysis for KAR:OGDC
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
KAR:OGDC has been successfully added to your 
