National Fuel Gas CoNFG -0.57%86 Operating Margin % is 40.44% as of Mar. 2026, which is 10% above its 10-year median of 36.65. GuruFocus rates NFG with a GF Score™ of 86/100 and a GF Value™ of $78.57 (Fairly Valued). The stock has 1 warning sign investors should review. Among 916 Oil & Gas companies, National Fuel Gas Co ranks better than 92.03% on this metric.
National Fuel Gas Co (NYSE:NFG) 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.
National Fuel Gas Co Operating Margin % Related Terms
National Fuel Gas Co Operating Margin % Historical Data
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The historical data trend for National Fuel Gas Co'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.
NFG vs DEC, UNTC, SLNG: Operating Margin % Comparison
For the Oil & Gas Integrated subindustry, National Fuel Gas Co'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.
National Fuel Gas Co Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, National Fuel Gas Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where National Fuel Gas Co's Operating Margin % falls into.
National Fuel Gas Co 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.
National Fuel Gas Co's Operating Margin % for the fiscal year that ended in Sep. 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.
National Fuel Gas Co (NFG) has a Operating Margin % of 40.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on National Fuel Gas Co and its competitors. This is 10% above median its historical median of 36.65. Over the past decade, National Fuel Gas Co's Operating Margin % has ranged from 30.22 to 41.94. According to the industry distribution chart, National Fuel Gas Co ranks #73 out of 916 companies in the Oil & Gas industry, placing it in the top 8%.
Is National Fuel Gas Co's Operating Margin % too high?
National Fuel Gas Co's current Operating Margin % of 40.44% is 10% above median its 10-year median of 36.65. Over the past 10 years, this metric has ranged from a low of 30.22 to a high of 41.94. The Oil & Gas industry median Operating Margin % is 6.86. National Fuel Gas Co's value of 40.44% is 489.5% above this industry median. Based on the distribution chart, National Fuel Gas Co ranks #73 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, National Fuel Gas Co has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does National Fuel Gas Co's Operating Margin % compare to DEC and UNTC?
According to the Oil & Gas industry distribution chart, National Fuel Gas Co ranks #73 out of 916 companies for Operating Margin %. This places National Fuel Gas Co in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. National Fuel Gas Co's value of 40.44% is 489.5% above this benchmark. Historically, National Fuel Gas Co's own Operating Margin % has ranged from 30.22 to 41.94 over the past decade. While the company's 10-year median is 36.65 vs. the industry median of 6.86, National Fuel Gas Co 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. National Fuel Gas Co's current Operating Margin % of 40.44% is 489.5% 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 National Fuel Gas Co 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. National Fuel Gas Co's current Operating Margin % is 40.44%, which is 10% above median its own 10-year median of 36.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Fuel Gas Co stock overvalued right now?
Based on GuruFocus' analysis, National Fuel Gas Co (NFG) is currently considered Fairly Valued. The stock's GF Value™ is $78.57, compared to a current price of $76.63 — trading 2.5% below its estimated fair value. The current Operating Margin % is 40.44%, which is 10% above median its 10-year median of 36.65 and 489.5% above the Oil & Gas industry median of 6.86. National Fuel Gas Co's overall GF Score™ is 86/100 with 1 warning sign 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 National Fuel Gas Co (NFG), the current Operating Margin % is 40.44% 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 National Fuel Gas Co (NFG) Overvalued in 2026?
Based on GuruFocus' analysis, National Fuel Gas Co stock appears to be undervalued.
The current stock price of $76.63 is trading 2.5% below its estimated GF Value™ of $78.57.
GuruFocus considers National Fuel Gas Co to be Fairly Valued.
Key valuation signals for NFG:
Operating Margin %: 40.44% (10% above median its 10-year median of 36.65)
GF Value™: $78.57 vs. price of $76.63 (2.5% below fair value)
Industry Position: 489.5% above the Oil & Gas median (#73 of 916)
No single metric tells the full story. See the NFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Fuel Gas Co is a diversified energy company involved in natural gas production, gathering, transportation, distribution, and marketing. It operates through three segments: Integrated Upstream and Gathering, Pipeline and Storage, and Utility. The majority of revenue comes from the Integrated Upstream and Gathering segment, which focuses on Seneca's natural gas exploration and development in the Appalachian region and Midstream operations supporting gas processing and gathering. The Pipeline and Storage segment transports and stores natural gas for customers in the northeastern United States and Canada, while the Utility segment supplies natural gas to retail customers in western New York and northwestern Pennsylvania. the company opeartes in United States.
86GF Score
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