Koil Energy Solutions (OTCPK:KLNG) 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.
Koil Energy Solutions Operating Margin % Related Terms
Koil Energy Solutions Operating Margin % Historical Data
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The historical data trend for Koil Energy Solutions'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.
KLNG vs STAK, RCON, KLXE: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Koil Energy Solutions'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.
Koil Energy Solutions Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Koil Energy Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Koil Energy Solutions's Operating Margin % falls into.
Koil Energy Solutions 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.
Koil Energy Solutions'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.
Koil Energy Solutions (KLNG) has a Operating Margin % of 3.34% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Koil Energy Solutions and its competitors. According to the industry distribution chart, Koil Energy Solutions ranks #672 out of 916 companies in the Oil & Gas industry, placing it in the top 73.4%.
Is Koil Energy Solutions' Operating Margin % too high?
Koil Energy Solutions' current Operating Margin % is 3.34%. The Oil & Gas industry median Operating Margin % is 6.86. Koil Energy Solutions' value of 3.34% is 51.3% below this industry median. Based on the distribution chart, Koil Energy Solutions ranks #672 out of 916 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Koil Energy Solutions has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Koil Energy Solutions' Operating Margin % compare to STAK and RCON?
According to the Oil & Gas industry distribution chart, Koil Energy Solutions ranks #672 out of 916 companies for Operating Margin %. This places Koil Energy Solutions in the lower half of its industry. The industry median Operating Margin % is 6.86. Koil Energy Solutions' value of 3.34% is 51.3% below this benchmark. 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. Koil Energy Solutions's current Operating Margin % of 3.34% is 51.3% below 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 Koil Energy Solutions 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. Koil Energy Solutions's current Operating Margin % is 3.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Koil Energy Solutions stock overvalued right now?
Based on GuruFocus' analysis, Koil Energy Solutions (KLNG) is currently considered Modestly Overvalued. The stock's GF Value™ is $2.13, compared to a current price of $2.58 — trading 21.1% above its estimated fair value. The current Operating Margin % is 3.34% and 51.3% below the Oil & Gas industry median of 6.86. Koil Energy Solutions' overall GF Score™ is 65/100 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 Koil Energy Solutions (KLNG), the current Operating Margin % is 3.34% 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 Koil Energy Solutions (KLNG) Overvalued in 2026?
Based on GuruFocus' analysis, Koil Energy Solutions stock appears to be overvalued.
The current stock price of $2.58 is trading 21.1% above its estimated GF Value™ of $2.13.
GuruFocus considers Koil Energy Solutions to be Modestly Overvalued.
Key valuation signals for KLNG:
Operating Margin %: 3.34%
GF Value™: $2.13 vs. price of $2.58 (21.1% above fair value)
Industry Position: 51.3% below the Oil & Gas median (#672 of 916)
No single metric tells the full story. See the KLNG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Koil Energy Solutions Inc is an energy services company that provides equipment and support services to the world's energy and offshore industries. Its core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, the company's team can support subsea engineering, manufacturing, installation, commissioning, & maintenance projects. Its products include Buoyancy Solutions, Flying Leads, Storage, & Transportation, Subsea Fluid & Power Distribution, & Umbilical Termination, loose-tube steel flying leads, & related services. The Company operates as a single operating segment, as an energy services company that provides equipment and support services.
65GF Score
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