NorAm Drilling ASOSL:NORAM +4.05%90 Operating Margin % is 11.35% as of Mar. 2026, which is 57% above its 10-year median of 7.21. GuruFocus rates OSL:NORAM with a GF Score™ of 90/100 and a GF Value™ of kr33.21 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 916 Oil & Gas companies, NorAm Drilling AS ranks better than 61.24% on this metric.
NorAm Drilling AS (OSL:NORAM) 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.
NorAm Drilling AS Operating Margin % Related Terms
NorAm Drilling AS Operating Margin % Historical Data
* Premium members only.
The historical data trend for NorAm Drilling AS'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.
OSL:NORAM vs SLB, BKR, HAL: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, NorAm Drilling AS'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.
NorAm Drilling AS Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, NorAm Drilling AS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NorAm Drilling AS'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.
NorAm Drilling AS'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.
NorAm Drilling AS (OSL:NORAM) has a Operating Margin % of 11.35% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NorAm Drilling AS and its competitors. This is 57% above median its historical median of 7.21. According to the industry distribution chart, NorAm Drilling AS ranks #355 out of 916 companies in the Oil & Gas industry, placing it in the top 38.8%.
Is NorAm Drilling AS's Operating Margin % too high?
NorAm Drilling AS's current Operating Margin % of 11.35% is 57% above median its 10-year median of 7.21. The Oil & Gas industry median Operating Margin % is 6.86. NorAm Drilling AS's value of 11.35% is 65.5% above this industry median. Based on the distribution chart, NorAm Drilling AS ranks #355 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, NorAm Drilling AS has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NorAm Drilling AS's Operating Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, NorAm Drilling AS ranks #355 out of 916 companies for Operating Margin %. This puts NorAm Drilling AS in the upper half of its industry. The industry median Operating Margin % is 6.86. NorAm Drilling AS's value of 11.35% is 65.5% above this benchmark. While the company's 10-year median is 7.21 vs. the industry median of 6.86, NorAm Drilling AS 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. NorAm Drilling AS's current Operating Margin % of 11.35% is 65.5% 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 NorAm Drilling AS 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. NorAm Drilling AS's current Operating Margin % is 11.35%, which is 57% above median its own 10-year median of 7.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NorAm Drilling AS stock overvalued right now?
Based on GuruFocus' analysis, NorAm Drilling AS (OSL:NORAM) is currently considered Modestly Overvalued. The stock's GF Value™ is kr33.21, compared to a current price of kr39.85 — trading 20% above its estimated fair value. The current Operating Margin % is 11.35%, which is 57% above median its 10-year median of 7.21 and 65.5% above the Oil & Gas industry median of 6.86. NorAm Drilling AS's overall GF Score™ is 90/100 with 3 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 NorAm Drilling AS (OSL:NORAM), the current Operating Margin % is 11.35% 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 NorAm Drilling AS (OSL:NORAM) Overvalued in 2026?
Based on GuruFocus' analysis, NorAm Drilling AS stock appears to be overvalued.
The current stock price of kr39.85 is trading 20% above its estimated GF Value™ of kr33.21.
GuruFocus considers NorAm Drilling AS to be Modestly Overvalued.
Key valuation signals for OSL:NORAM:
Operating Margin %: 11.35% (57% above median its 10-year median of 7.21)
GF Value™: kr33.21 vs. price of kr39.85 (20% above fair value)
Industry Position: 65.5% above the Oil & Gas median (#355 of 916)
No single metric tells the full story. See the OSL:NORAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NorAm Drilling AS owns and operates a quality rig portfolio of super spec developed high-end AC driven rigs tailored for the drilling of horizontal wells in the USA land drilling market. These rigs are designed to combine the cost efficiency of a compact rig with the versatility of different rig classes, enabling the rigs to cover a broad range of wells for both liquids and gas. The group's operating segments are NorAm Drilling Company, which derives maximum revenue, and NorAm Drilling AS.
90GF Score
Get the complete analysis for OSL:NORAM
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
OSL:NORAM has been successfully added to your 
