Natural Gas Services GroupNGS -2.70%78 Operating Margin % is 27.68% as of Mar. 2026, which is 2013% above its 10-year median of 1.31. GuruFocus rates NGS with a GF Score™ of 78/100 and a GF Value™ of $28.22 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 916 Oil & Gas companies, Natural Gas Services Group ranks better than 79.04% on this metric.
Natural Gas Services Group (NYSE:NGS) 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.
Natural Gas Services Group Operating Margin % Related Terms
Natural Gas Services Group 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.
Natural Gas Services Group Operating Margin % Chart
NGS vs OIS, FET, EROK: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Natural Gas Services 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.
Natural Gas Services Group Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Natural Gas Services Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Natural Gas Services Group's Operating Margin % falls into.
Natural Gas Services 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.
Natural Gas Services 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.
Natural Gas Services Group (NGS) has a Operating Margin % of 27.68% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Natural Gas Services Group and its competitors. This is 2013% above median its historical median of 1.31. According to the industry distribution chart, Natural Gas Services Group ranks #192 out of 916 companies in the Oil & Gas industry, placing it in the top 21%.
Is Natural Gas Services Group's Operating Margin % too high?
Natural Gas Services Group's current Operating Margin % of 27.68% is 2013% above median its 10-year median of 1.31. The Oil & Gas industry median Operating Margin % is 6.86. Natural Gas Services Group's value of 27.68% is 303.5% above this industry median. Based on the distribution chart, Natural Gas Services Group ranks #192 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Natural Gas Services Group has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Natural Gas Services Group's Operating Margin % compare to OIS and FET?
According to the Oil & Gas industry distribution chart, Natural Gas Services Group ranks #192 out of 916 companies for Operating Margin %. This places Natural Gas Services Group in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Natural Gas Services Group's value of 27.68% is 303.5% above this benchmark. While the company's 10-year median is 1.31 vs. the industry median of 6.86, Natural Gas Services 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 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. Natural Gas Services Group's current Operating Margin % of 27.68% is 303.5% 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 Natural Gas Services Group 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. Natural Gas Services Group's current Operating Margin % is 27.68%, which is 2013% above median its own 10-year median of 1.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Gas Services Group stock overvalued right now?
Based on GuruFocus' analysis, Natural Gas Services Group (NGS) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.22, compared to a current price of $42.94 — trading 52.2% above its estimated fair value. The current Operating Margin % is 27.68%, which is 2013% above median its 10-year median of 1.31 and 303.5% above the Oil & Gas industry median of 6.86. Natural Gas Services Group's overall GF Score™ is 78/100 with 8 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 Natural Gas Services Group (NGS), the current Operating Margin % is 27.68% 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 Natural Gas Services Group (NGS) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Gas Services Group stock appears to be overvalued.
The current stock price of $42.94 is trading 52.2% above its estimated GF Value™ of $28.22.
GuruFocus considers Natural Gas Services Group to be Significantly Overvalued.
Key valuation signals for NGS:
Operating Margin %: 27.68% (2013% above median its 10-year median of 1.31)
GF Value™: $28.22 vs. price of $42.94 (52.2% above fair value)
Industry Position: 303.5% above the Oil & Gas median (#192 of 916)
No single metric tells the full story. See the NGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Gas Services Group Inc provides natural gas compression equipment and services to the energy industry. The company manufactures, fabricates, rents, sells, and maintains natural gas compressors and flare systems for oil and natural gas production and plant facilities. Its operating units include Rental, Sales, and Aftermarket services. It operates in one reporting segment. The company generates the majority of its revenue by renting out low- to medium-horsepower compression equipment to natural gas production companies in unconventional oil and gas regions of the United States.
78GF Score
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