Kodiak Gas ServicesKGS +4.59%47 Operating Margin % is 31.26% as of Mar. 2026, which is 0% above its 10-year median of 31.18. GuruFocus rates KGS with a GF Score™ of 47/100 and a GF Value™ of $37.21 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 916 Oil & Gas companies, Kodiak Gas Services ranks better than 85.81% on this metric.
Kodiak Gas Services (NYSE:KGS) 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.
Kodiak Gas Services Operating Margin % Related Terms
Kodiak Gas Services Operating Margin % Historical Data
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The historical data trend for Kodiak Gas Services'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.
KGS vs NOV, WFRD, AROC: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Kodiak Gas Services'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.
Kodiak Gas Services Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kodiak Gas Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kodiak Gas Services's Operating Margin % falls into.
Kodiak Gas Services 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.
Kodiak Gas Services'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.
Kodiak Gas Services (KGS) has a Operating Margin % of 31.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kodiak Gas Services and its competitors. This is near median its historical median of 31.18. Over the past decade, Kodiak Gas Services' Operating Margin % has ranged from 24.93 to 32.73. According to the industry distribution chart, Kodiak Gas Services ranks #130 out of 916 companies in the Oil & Gas industry, placing it in the top 14.2%.
Is Kodiak Gas Services' Operating Margin % too high?
Kodiak Gas Services' current Operating Margin % of 31.26% is near median its 10-year median of 31.18. Over the past 10 years, this metric has ranged from a low of 24.93 to a high of 32.73. The Oil & Gas industry median Operating Margin % is 6.86. Kodiak Gas Services' value of 31.26% is 355.7% above this industry median. Based on the distribution chart, Kodiak Gas Services ranks #130 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Kodiak Gas Services has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kodiak Gas Services' Operating Margin % compare to NOV and WFRD?
According to the Oil & Gas industry distribution chart, Kodiak Gas Services ranks #130 out of 916 companies for Operating Margin %. This places Kodiak Gas Services in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Kodiak Gas Services' value of 31.26% is 355.7% above this benchmark. Historically, Kodiak Gas Services' own Operating Margin % has ranged from 24.93 to 32.73 over the past decade. While the company's 10-year median is 31.18 vs. the industry median of 6.86, Kodiak Gas Services 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. Kodiak Gas Services's current Operating Margin % of 31.26% is 355.7% 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 Kodiak Gas Services 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. Kodiak Gas Services's current Operating Margin % is 31.26%, which is near median its own 10-year median of 31.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kodiak Gas Services stock overvalued right now?
Based on GuruFocus' analysis, Kodiak Gas Services (KGS) is currently considered Significantly Overvalued. The stock's GF Value™ is $37.21, compared to a current price of $73.89 — trading 98.6% above its estimated fair value. The current Operating Margin % is 31.26%, which is near median its 10-year median of 31.18 and 355.7% above the Oil & Gas industry median of 6.86. Kodiak Gas Services' overall GF Score™ is 47/100 with 10 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 Kodiak Gas Services (KGS), the current Operating Margin % is 31.26% 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 Kodiak Gas Services (KGS) Overvalued in 2026?
Based on GuruFocus' analysis, Kodiak Gas Services stock appears to be overvalued.
The current stock price of $73.89 is trading 98.6% above its estimated GF Value™ of $37.21.
GuruFocus considers Kodiak Gas Services to be Significantly Overvalued.
Key valuation signals for KGS:
Operating Margin %: 31.26% (near median its 10-year median of 31.18)
GF Value™: $37.21 vs. price of $73.89 (98.6% above fair value)
Industry Position: 355.7% above the Oil & Gas median (#130 of 916)
No single metric tells the full story. See the KGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kodiak Gas Services Inc is an operator of contract compression infrastructure in the United States. The company manages its business through two operating segments: Contract Services and Other Services. Contract Services consists of operating company-owned and customer-owned compression, gas treating, and cooling infrastructure, pursuant to fixed-revenue contracts to enable the production and gathering of natural gas and oil. Other Services consist of a full range of contract services to support the ancillary needs of customers, including station construction, maintenance and overhaul, freight and crane charges, and other time and material-based offerings. Maximum revenue for the company is generated from its Contract Services segment.
47GF Score
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