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.
NCS Multistage Holdings Operating Margin % Related Terms
NCS Multistage Holdings Operating Margin % Historical Data
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The historical data trend for NCS Multistage Holdings'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.
NCSM vs GEOS, DWSN, DTI: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, NCS Multistage Holdings'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.
NCS Multistage Holdings Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, NCS Multistage Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NCS Multistage Holdings'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.
NCS Multistage Holdings'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.
NCS Multistage Holdings (NCSM) has a Operating Margin % of 1.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NCS Multistage Holdings and its competitors. According to the industry distribution chart, NCS Multistage Holdings ranks #537 out of 916 companies in the Oil & Gas industry, placing it in the top 58.6%.
Is NCS Multistage Holdings' Operating Margin % too high?
NCS Multistage Holdings' current Operating Margin % is 1.86%. The Oil & Gas industry median Operating Margin % is 6.86. NCS Multistage Holdings' value of 1.86% is 72.9% below this industry median. Based on the distribution chart, NCS Multistage Holdings ranks #537 out of 916 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, NCS Multistage Holdings has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NCS Multistage Holdings' Operating Margin % compare to GEOS and DWSN?
According to the Oil & Gas industry distribution chart, NCS Multistage Holdings ranks #537 out of 916 companies for Operating Margin %. This places NCS Multistage Holdings in the lower half of its industry. The industry median Operating Margin % is 6.86. NCS Multistage Holdings' value of 1.86% is 72.9% below this benchmark. 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. NCS Multistage Holdings's current Operating Margin % of 1.86% is 72.9% below 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 NCS Multistage Holdings 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. NCS Multistage Holdings's current Operating Margin % is 1.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NCS Multistage Holdings stock overvalued right now?
Based on GuruFocus' analysis, NCS Multistage Holdings (NCSM) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.91, compared to a current price of $45.39 — trading 75.2% above its estimated fair value. The current Operating Margin % is 1.86% and 72.9% below the Oil & Gas industry median of 6.86. NCS Multistage Holdings' overall GF Score™ is 60/100 with 4 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 NCS Multistage Holdings (NCSM), the current Operating Margin % is 1.86% 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 NCS Multistage Holdings (NCSM) Overvalued in 2026?
Based on GuruFocus' analysis, NCS Multistage Holdings stock appears to be overvalued.
The current stock price of $45.39 is trading 75.2% above its estimated GF Value™ of $25.91.
GuruFocus considers NCS Multistage Holdings to be Significantly Overvalued.
Key valuation signals for NCSM:
Operating Margin %: 1.86%
GF Value™: $25.91 vs. price of $45.39 (75.2% above fair value)
Industry Position: 72.9% below the Oil & Gas median (#537 of 916)
No single metric tells the full story. See the NCSM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NCS Multistage Holdings Inc is a provider of engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completion, and field development strategies. The company provides its products and services to E&P companies for use in onshore and offshore wells, predominantly those drilled with horizontal laterals in unconventional and conventional oil and natural gas formations. It also provides tracer diagnostics services and sells products for well construction including casing buoyancy systems, liner hanger systems and toe initiation sleeves, along with certain complementary products from third parties. The company operates in the United States, Canada and other countries, with the majority of its revenue generated from Canada.
60GF Score
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