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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.
Enterprise Products Partners LP Operating Margin % Related Terms
Enterprise Products 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.
LTS:0S23 vs KMI, ET, WMB: Operating Margin % Comparison
For the Oil & Gas Midstream subindustry, Enterprise Products 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.
Enterprise Products Partners LP Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Enterprise Products Partners LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Enterprise Products 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.
* 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.
Enterprise Products Partners LP (LTS:0S23) has a Operating Margin % of 12.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Enterprise Products Partners LP and its competitors. This is near median its historical median of 13.31. Over the past decade, Enterprise Products Partners LP's Operating Margin % has ranged from 11.07 to 16.94. According to the industry distribution chart, Enterprise Products Partners LP ranks #318 out of 917 companies in the Oil & Gas industry, placing it in the top 34.7%.
Is Enterprise Products Partners LP's Operating Margin % too high?
Enterprise Products Partners LP's current Operating Margin % of 12.64% is near median its 10-year median of 13.31. Over the past 10 years, this metric has ranged from a low of 11.07 to a high of 16.94. The Oil & Gas industry median Operating Margin % is 6.97. Enterprise Products Partners LP's value of 12.64% is 81.3% above this industry median. Based on the distribution chart, Enterprise Products Partners LP ranks #318 out of 917 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Enterprise Products Partners LP has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Enterprise Products Partners LP's Operating Margin % compare to KMI and ET?
According to the Oil & Gas industry distribution chart, Enterprise Products Partners LP ranks #318 out of 917 companies for Operating Margin %. This puts Enterprise Products Partners LP in the upper half of its industry. The industry median Operating Margin % is 6.97. Enterprise Products Partners LP's value of 12.64% is 81.3% above this benchmark. Historically, Enterprise Products Partners LP's own Operating Margin % has ranged from 11.07 to 16.94 over the past decade. While the company's 10-year median is 13.31 vs. the industry median of 6.97, Enterprise Products 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. Enterprise Products Partners LP's current Operating Margin % of 12.64% is 81.3% 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 Enterprise Products 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. Enterprise Products Partners LP's current Operating Margin % is 12.64%, which is near median its own 10-year median of 13.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enterprise Products Partners LP stock overvalued right now?
Based on GuruFocus' analysis, Enterprise Products Partners LP (LTS:0S23) is currently considered Modestly Overvalued. The stock's GF Value™ is $29.46, compared to a current price of $37.78 — trading 28.2% above its estimated fair value. The current Operating Margin % is 12.64%, which is near median its 10-year median of 13.31 and 81.3% above the Oil & Gas industry median of 6.97. Enterprise Products Partners LP's overall GF Score™ is 83/100 with 12 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 Enterprise Products Partners LP (LTS:0S23), the current Operating Margin % is 12.64% 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 Enterprise Products Partners LP (LTS:0S23) Overvalued in 2026?
Based on GuruFocus' analysis, Enterprise Products Partners LP stock appears to be overvalued.
The current stock price of $37.78 is trading 28.2% above its estimated GF Value™ of $29.46.
GuruFocus considers Enterprise Products Partners LP to be Modestly Overvalued.
Key valuation signals for LTS:0S23:
Operating Margin %: 12.64% (near median its 10-year median of 13.31)
GF Value™: $29.46 vs. price of $37.78 (28.2% above fair value)
Industry Position: 81.3% above the Oil & Gas median (#318 of 917)
No single metric tells the full story. See the LTS:0S23 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Enterprise Products Partners LP Business Description
Enterprise Products Partners is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products, and petrochemicals. It is one of the largest midstream companies, with operations servicing most producing regions in the continental US. Enterprise is particularly dominant in the NGL market and is one of the few MLPs that provide midstream services across the full hydrocarbon value chain.
83GF Score
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