Naturgy Energy GroupLTS:0NPV -2.35%66 Operating Margin % is 18.75% as of Dec. 2025, which is 37% above its 10-year median of 13.66. GuruFocus rates LTS:0NPV with a GF Score™ of 66/100 and a GF Value™ of €22.57 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 499 Utilities - Regulated companies, Naturgy Energy Group ranks better than 63.33% on this metric.
Naturgy Energy Group SA operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Naturgy Energy Group's Operating Margin % or its related term are showing as below:
LTS:0NPV'
s Operating Margin % Range Over the Past 10 Years
Min: 10.28 Med: 13.66 Max: 20.21
Current: 19.55
LTS:0NPV's Operating Margin % is ranked better than 63.33% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs LTS:0NPV: 19.55
Naturgy Energy Group's 5-Year Average Operating Margin % Growth Rate was 11.90% per year.
Naturgy Energy Group (LTS:0NPV) 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.
Naturgy Energy Group Operating Margin % Related Terms
Naturgy Energy Group Operating Margin % Historical Data
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The historical data trend for Naturgy Energy Group'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.
LTS:0NPV vs ATO, NI, UGI: Operating Margin % Comparison
For the Utilities - Regulated Gas subindustry, Naturgy Energy Group'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.
Naturgy Energy Group Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Naturgy Energy Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Naturgy Energy Group's Operating Margin % falls into.
Naturgy Energy Group 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.
Naturgy Energy Group'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.
Naturgy Energy Group (LTS:0NPV) has a Operating Margin % of 18.75% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Naturgy Energy Group and its competitors. This is 37% above median its historical median of 13.66. Over the past decade, Naturgy Energy Group's Operating Margin % has ranged from 10.28 to 20.21. According to the industry distribution chart, Naturgy Energy Group ranks #183 out of 499 companies in the Utilities - Regulated industry, placing it in the top 36.7%.
Is Naturgy Energy Group's Operating Margin % too high?
Naturgy Energy Group's current Operating Margin % of 18.75% is 37% above median its 10-year median of 13.66. Over the past 10 years, this metric has ranged from a low of 10.28 to a high of 20.21. The Utilities - Regulated industry median Operating Margin % is 14.97. Naturgy Energy Group's value of 18.75% is 25.3% above this industry median. Based on the distribution chart, Naturgy Energy Group ranks #183 out of 499 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Naturgy Energy Group has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Naturgy Energy Group's Operating Margin % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Naturgy Energy Group ranks #183 out of 499 companies for Operating Margin %. This puts Naturgy Energy Group in the upper half of its industry. The industry median Operating Margin % is 14.97. Naturgy Energy Group's value of 18.75% is 25.3% above this benchmark. Historically, Naturgy Energy Group's own Operating Margin % has ranged from 10.28 to 20.21 over the past decade. While the company's 10-year median is 13.66 vs. the industry median of 14.97, Naturgy Energy Group 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 Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Naturgy Energy Group's current Operating Margin % of 18.75% is 25.3% 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 Naturgy Energy Group and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Naturgy Energy Group's current Operating Margin % is 18.75%, which is 37% above median its own 10-year median of 13.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Naturgy Energy Group stock overvalued right now?
Based on GuruFocus' analysis, Naturgy Energy Group (LTS:0NPV) is currently considered Modestly Overvalued. The stock's GF Value™ is €22.57, compared to a current price of €27.45 — trading 21.6% above its estimated fair value. The current Operating Margin % is 18.75%, which is 37% above median its 10-year median of 13.66 and 25.3% above the Utilities - Regulated industry median of 14.97. Naturgy Energy Group's overall GF Score™ is 66/100 with 7 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 Naturgy Energy Group (LTS:0NPV), the current Operating Margin % is 18.75% as of Dec. 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.
Is Naturgy Energy Group (LTS:0NPV) Overvalued in 2026?
Based on GuruFocus' analysis, Naturgy Energy Group stock appears to be overvalued.
The current stock price of €27.45 is trading 21.6% above its estimated GF Value™ of €22.57.
GuruFocus considers Naturgy Energy Group to be Modestly Overvalued.
Key valuation signals for LTS:0NPV:
Operating Margin %: 18.75% (37% above median its 10-year median of 13.66)
GF Value™: €22.57 vs. price of €27.45 (21.6% above fair value)
Industry Position: 25.3% above the Utilities - Regulated median (#183 of 499)
No single metric tells the full story. See the LTS:0NPV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Naturgy stems from the 2008 acquisition of Union Fenosa. The company operates across the gas value chain, from procurement to distribution and marketing. It owns and operates the largest gas distribution network in Spain, where it is also the leading retail gas supplier. The company additionally operates gas and electricity distribution networks across several Latin American countries. It owns 17.9 GW of generation capacity, including 7.3 GW of wind and solar.
66GF Score
Get the complete analysis for LTS:0NPV
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