Peyto Exploration & DevelopmentPEYXY 66 Operating Margin % is 51.25% as of Mar. 2026, which is 99% above its 10-year median of 25.80. GuruFocus rates PEYXY with a GF Scoreâ„¢ of 66/100 and a GF Valueâ„¢ of $22.18 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 916 Oil & Gas companies, Peyto Exploration & Development ranks better than 89.63% on this metric.
Peyto Exploration & Development (OTCPK:PEYXY) 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 NokiaÂ’s 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.
Peyto Exploration & Development Operating Margin % Related Terms
Peyto Exploration & Development 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.
Peyto Exploration & Development Operating Margin % Chart
PEYXY vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Peyto Exploration & Development'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.
Peyto Exploration & Development Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Peyto Exploration & Development's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Peyto Exploration & Development's Operating Margin % falls into.
Peyto Exploration & Development 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.
* 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.
Peyto Exploration & Development (PEYXY) has a Operating Margin % of 51.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Peyto Exploration & Development and its competitors. This is 99% above median its historical median of 25.80. Over the past decade, Peyto Exploration & Development's Operating Margin % has ranged from 4.61 to 55.00. According to the industry distribution chart, Peyto Exploration & Development ranks #95 out of 916 companies in the Oil & Gas industry, placing it in the top 10.4%.
Is Peyto Exploration & Development's Operating Margin % too high?
Peyto Exploration & Development's current Operating Margin % of 51.25% is 99% above median its 10-year median of 25.80. Over the past 10 years, this metric has ranged from a low of 4.61 to a high of 55.00. The Oil & Gas industry median Operating Margin % is 6.86. Peyto Exploration & Development's value of 51.25% is 647.1% above this industry median. Based on the distribution chart, Peyto Exploration & Development ranks #95 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Peyto Exploration & Development has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Peyto Exploration & Development's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Peyto Exploration & Development ranks #95 out of 916 companies for Operating Margin %. This places Peyto Exploration & Development in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Peyto Exploration & Development's value of 51.25% is 647.1% above this benchmark. Historically, Peyto Exploration & Development's own Operating Margin % has ranged from 4.61 to 55.00 over the past decade. While the company's 10-year median is 25.80 vs. the industry median of 6.86, Peyto Exploration & Development 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. Peyto Exploration & Development's current Operating Margin % of 51.25% is 647.1% 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 Peyto Exploration & Development 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. Peyto Exploration & Development's current Operating Margin % is 51.25%, which is 99% above median its own 10-year median of 25.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peyto Exploration & Development stock overvalued right now?
Based on GuruFocus' analysis, Peyto Exploration & Development (PEYXY) is currently considered Modestly Overvalued. The stock's GF Value™ is $22.18, compared to a current price of $26.50 — trading 19.5% above its estimated fair value. The current Operating Margin % is 51.25%, which is 99% above median its 10-year median of 25.80 and 647.1% above the Oil & Gas industry median of 6.86. Peyto Exploration & Development's overall GF Score™ is 66/100 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 Peyto Exploration & Development (PEYXY), the current Operating Margin % is 51.25% 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 Peyto Exploration & Development (PEYXY) Overvalued in 2026?
Based on GuruFocus' analysis, Peyto Exploration & Development stock appears to be overvalued.
The current stock price of $26.50 is trading 19.5% above its estimated GF Value™ of $22.18.
GuruFocus considers Peyto Exploration & Development to be Modestly Overvalued.
Key valuation signals for PEYXY:
Operating Margin %: 51.25% (99% above median its 10-year median of 25.80)
GF Value™: $22.18 vs. price of $26.50 (19.5% above fair value)
Industry Position: 647.1% above the Oil & Gas median (#95 of 916)
No single metric tells the full story. See the PEYXY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Peyto Exploration & Development Business Description
Peyto Exploration & Development Corp is a Canadian energy company involved in the development and production of oil and natural gas. It conducts exploration, development, and production activities in Canada. Substantial revenue is generated from Natural gas and natural gas liquid sales.
66GF Score
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