Savannah EnergyLSE:SAVE Operating Margin % is 30.16% as of Jun. 2025, which is 43% below its 10-year median of 53.06. The stock has 7 warning signs investors should review. Among 916 Oil & Gas companies, Savannah Energy ranks better than 87.34% on this metric.
Savannah Energy (LSE:SAVE) 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.
Savannah Energy Operating Margin % Related Terms
Savannah Energy Operating Margin % Historical Data
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The historical data trend for Savannah Energy'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.
LSE:SAVE vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Savannah Energy'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.
Savannah Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Savannah Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Savannah Energy'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.
Savannah Energy's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Savannah Energy (LSE:SAVE) has a Operating Margin % of 30.16% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Savannah Energy and its competitors. This is 43% below median its historical median of 53.06. According to the industry distribution chart, Savannah Energy ranks #116 out of 916 companies in the Oil & Gas industry, placing it in the top 12.7%.
Is Savannah Energy's Operating Margin % too high?
Savannah Energy's current Operating Margin % of 30.16% is 43% below median its 10-year median of 53.06. The Oil & Gas industry median Operating Margin % is 6.86. Savannah Energy's value of 30.16% is 339.7% above this industry median. Based on the distribution chart, Savannah Energy ranks #116 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers.
How does Savannah Energy's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Savannah Energy ranks #116 out of 916 companies for Operating Margin %. This places Savannah Energy in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Savannah Energy's value of 30.16% is 339.7% above this benchmark. While the company's 10-year median is 53.06 vs. the industry median of 6.86, Savannah Energy 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. Savannah Energy's current Operating Margin % of 30.16% is 339.7% 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 Savannah Energy 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. Savannah Energy's current Operating Margin % is 30.16%, which is 43% below median its own 10-year median of 53.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Savannah Energy stock overvalued right now?
Based on GuruFocus' analysis, Savannah Energy (LSE:SAVE) is currently considered Possible Value Trap. The stock's GF Value™ is £0.26, compared to a current price of £0.06 — trading 76.5% below its estimated fair value. The current Operating Margin % is 30.16%, which is 43% below median its 10-year median of 53.06 and 339.7% above the Oil & Gas industry median of 6.86. 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 Savannah Energy (LSE:SAVE), the current Operating Margin % is 30.16% as of Jun. 2025. 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.
Savannah Energy PLC is an energy company focused on the exploration, development, and production of natural gas and crude oil across Africa. The Group operates through four segments, with its primary activities centered on the exploration, development, and extraction of oil and gas. Its key geographical markets include Nigeria, Cameroon, and Niger.
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