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KNOT Offshore Partners LPKNOP -0.65%61 Operating Margin % is 15.97% as of Mar. 2026, which is 60% below its 10-year median of 40.07. GuruFocus rates KNOP with a GF Score™ of 61/100 and a GF Value™ of $8.08 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 917 Oil & Gas companies, KNOT Offshore Partners LP ranks better than 80.59% on this metric.
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.
KNOT Offshore Partners LP Operating Margin % Related Terms
KNOT Offshore Partners LP 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.
KNOP vs SMC, IMPP, TORO: Operating Margin % Comparison
For the Oil & Gas Midstream subindustry, KNOT Offshore Partners LP'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.
KNOT Offshore Partners LP Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, KNOT Offshore Partners LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where KNOT Offshore Partners LP'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.
KNOT Offshore Partners LP'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.
KNOT Offshore Partners LP (KNOP) has a Operating Margin % of 15.97% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on KNOT Offshore Partners LP and its competitors. This is 60% below median its historical median of 40.07. Over the past decade, KNOT Offshore Partners LP's Operating Margin % has ranged from 24.66 to 47.31. According to the industry distribution chart, KNOT Offshore Partners LP ranks #178 out of 917 companies in the Oil & Gas industry, placing it in the top 19.4%.
Is KNOT Offshore Partners LP's Operating Margin % too high?
KNOT Offshore Partners LP's current Operating Margin % of 15.97% is 60% below median its 10-year median of 40.07. Over the past 10 years, this metric has ranged from a low of 24.66 to a high of 47.31. The Oil & Gas industry median Operating Margin % is 6.97. KNOT Offshore Partners LP's value of 15.97% is 129.1% above this industry median. Based on the distribution chart, KNOT Offshore Partners LP ranks #178 out of 917 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, KNOT Offshore Partners LP has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does KNOT Offshore Partners LP's Operating Margin % compare to SMC and IMPP?
According to the Oil & Gas industry distribution chart, KNOT Offshore Partners LP ranks #178 out of 917 companies for Operating Margin %. This places KNOT Offshore Partners LP in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.97. KNOT Offshore Partners LP's value of 15.97% is 129.1% above this benchmark. Historically, KNOT Offshore Partners LP's own Operating Margin % has ranged from 24.66 to 47.31 over the past decade. While the company's 10-year median is 40.07 vs. the industry median of 6.97, KNOT Offshore Partners LP 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 6.97, based on 917 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. KNOT Offshore Partners LP's current Operating Margin % of 15.97% is 129.1% 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 KNOT Offshore Partners LP and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KNOT Offshore Partners LP's current Operating Margin % is 15.97%, which is 60% below median its own 10-year median of 40.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KNOT Offshore Partners LP stock overvalued right now?
Based on GuruFocus' analysis, KNOT Offshore Partners LP (KNOP) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.08, compared to a current price of $10.69 — trading 32.3% above its estimated fair value. The current Operating Margin % is 15.97%, which is 60% below median its 10-year median of 40.07 and 129.1% above the Oil & Gas industry median of 6.97. KNOT Offshore Partners LP's overall GF Score™ is 61/100 with 9 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 KNOT Offshore Partners LP (KNOP), the current Operating Margin % is 15.97% 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 KNOT Offshore Partners LP (KNOP) Overvalued in 2026?
Based on GuruFocus' analysis, KNOT Offshore Partners LP stock appears to be overvalued.
The current stock price of $10.69 is trading 32.3% above its estimated GF Value™ of $8.08.
GuruFocus considers KNOT Offshore Partners LP to be Significantly Overvalued.
Key valuation signals for KNOP:
Operating Margin %: 15.97% (60% below median its 10-year median of 40.07)
GF Value™: $8.08 vs. price of $10.69 (32.3% above fair value)
Industry Position: 129.1% above the Oil & Gas median (#178 of 917)
No single metric tells the full story. See the KNOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KNOT Offshore Partners LP owns, operates, and shuttles tankers under long-term charters in the North Sea and Brazil. The company provides crude oil loading, transportation, and storage services under time charters and bareboat charters. The Partnership is formed for acquiring ownership interests in over four shuttle tankers owned by Knutsen NYK Offshore Tankers AS (KNOT). It operates through the shuttle tanker market segment.
61GF Score
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