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Burgan Company for Well Drilling Trading and MaintenanceK (KUW:ABAR) 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 NokiaÂ’s 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.
Burgan Company for Well Drilling Trading and MaintenanceK Operating Margin % Related Terms
Burgan Company for Well Drilling Trading and MaintenanceK 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.
Burgan Company for Well Drilling Trading and MaintenanceK Operating Margin % Chart
Burgan Company for Well Drilling Trading and MaintenanceK Annual Data
* 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.
Burgan Company for Well Drilling Trading and MaintenanceK Operating Margin % vs Oil & Gas Industry
Burgan Company for Well Drilling Trading and MaintenanceK 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.
* 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.
Burgan Company for Well Drilling Trading and MaintenanceK (KUW:ABAR) has a Operating Margin % of 28.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Burgan Company for Well Drilling Trading and MaintenanceK and its competitors. This is 134% above median its historical median of 12.12. Over the past decade, Burgan Company for Well Drilling Trading and MaintenanceK's Operating Margin % has ranged from 9.54 to 19.37. According to the industry distribution chart, Burgan Company for Well Drilling Trading and MaintenanceK ranks #252 out of 918 companies in the Oil & Gas industry, placing it in the top 27.5%.
Is Burgan Company for Well Drilling Trading and MaintenanceK's Operating Margin % too high?
Burgan Company for Well Drilling Trading and MaintenanceK's current Operating Margin % of 28.40% is 134% above median its 10-year median of 12.12. Over the past 10 years, this metric has ranged from a low of 9.54 to a high of 19.37. The Oil & Gas industry median Operating Margin % is 6.91. Burgan Company for Well Drilling Trading and MaintenanceK's value of 28.40% is 311.3% above this industry median. Based on the distribution chart, Burgan Company for Well Drilling Trading and MaintenanceK ranks #252 out of 918 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Burgan Company for Well Drilling Trading and MaintenanceK has a GF Scoreâ„¢ of 23/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Burgan Company for Well Drilling Trading and MaintenanceK's Operating Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Burgan Company for Well Drilling Trading and MaintenanceK ranks #252 out of 918 companies for Operating Margin %. This puts Burgan Company for Well Drilling Trading and MaintenanceK in the upper half of its industry. The industry median Operating Margin % is 6.91. Burgan Company for Well Drilling Trading and MaintenanceK's value of 28.40% is 311.3% above this benchmark. Historically, Burgan Company for Well Drilling Trading and MaintenanceK's own Operating Margin % has ranged from 9.54 to 19.37 over the past decade. While the company's 10-year median is 12.12 vs. the industry median of 6.91, Burgan Company for Well Drilling Trading and MaintenanceK 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 6.91, based on 918 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. Burgan Company for Well Drilling Trading and MaintenanceK's current Operating Margin % of 28.40% is 311.3% 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 Burgan Company for Well Drilling Trading and MaintenanceK and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Burgan Company for Well Drilling Trading and MaintenanceK's current Operating Margin % is 28.40%, which is 134% above median its own 10-year median of 12.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Burgan Company for Well Drilling Trading and MaintenanceK stock overvalued right now?
Based on GuruFocus' analysis, Burgan Company for Well Drilling Trading and MaintenanceK (KUW:ABAR) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.13, compared to a current price of KWD0.18 — trading 41.5% above its estimated fair value. The current Operating Margin % is 28.40%, which is 134% above median its 10-year median of 12.12 and 311.3% above the Oil & Gas industry median of 6.91. Burgan Company for Well Drilling Trading and MaintenanceK's overall GF Score™ is 23/100 with 6 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 Burgan Company for Well Drilling Trading and MaintenanceK (KUW:ABAR), the current Operating Margin % is 28.40% 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 Burgan Company for Well Drilling Trading and MaintenanceK (KUW:ABAR) Overvalued in 2026?
Based on GuruFocus' analysis, Burgan Company for Well Drilling Trading and MaintenanceK stock appears to be overvalued.
The current stock price of KWD0.18 is trading 41.5% above its estimated GF Value™ of KWD0.13.
GuruFocus considers Burgan Company for Well Drilling Trading and MaintenanceK to be Significantly Overvalued.
Key valuation signals for KUW:ABAR:
Operating Margin %: 28.40% (134% above median its 10-year median of 12.12)
GF Value™: KWD0.13 vs. price of KWD0.18 (41.5% above fair value)
Industry Position: 311.3% above the Oil & Gas median (#252 of 918)
No single metric tells the full story. See the KUW:ABAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Burgan Company for Well Drilling Trading and MaintenanceK Business Description
Burgan Company for Well Drilling Trading and Maintenance SAK provides drilling, exploration, and maintenance services for oil and gas companies. The company offers development and exploratory services, as well as drilling and maintenance of oil and gas wells in Kuwait and internationally with the approval of the Ministry of Oil. It also establishes, participates in, or acquires affiliates as outlined in its Memorandum of Incorporation. Additionally, the company invests its financial surpluses in portfolios managed by specialized entities. Burgan Company serves its clients by drilling deep, medium, and shallow wells, as well as performing workover operations. Its primary operating segment is oil and gas well services.
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