Royale EnergyROYL +7.53% Operating Margin % is -63.90% as of Sep. 2025. The stock has 3 warning signs investors should review. Among 916 Oil & Gas companies, Royale Energy ranks worse than 89.52% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Royale Energy's Operating Income for the
three
months ended in Sep. 2025 was $-0.38 Mil. Royale Energy's Revenue for the
three
months ended in Sep. 2025 was $0.59 Mil. Therefore, Royale Energy's Operating Margin % for the quarter that ended in Sep. 2025 was -63.90%.
The historical rank and industry rank for Royale Energy's Operating Margin % or its related term are showing as below:
ROYL'
s Operating Margin % Range Over the Past 10 Years
Min: -301.46 Med: -67.63 Max: 7.45
Current: -85.13
ROYL's Operating Margin % is ranked worse than 89.52% of 916
companies
in the Oil & Gas industry
Industry Median: 6.86
vs ROYL: -85.13
Royale Energy's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Royale Energy's Operating Income for the
three
months ended in Sep. 2025 was $-0.38 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2025 was $-1.62 Mil.
Royale Energy (OTCPK:ROYL) 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.
Royale Energy Operating Margin % Related Terms
Royale Energy Operating Margin % Historical Data
* Premium members only.
The historical data trend for Royale Energy'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.
ROYL vs GULTU, HGTXU, MTR: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Royale Energy'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.
Royale Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Royale Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Royale Energy'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.
Royale Energy's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Royale Energy (ROYL) has a Operating Margin % of -63.90% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Royale Energy and its competitors. According to the industry distribution chart, Royale Energy ranks #820 out of 916 companies in the Oil & Gas industry, placing it in the top 89.5%.
Is Royale Energy's Operating Margin % too high?
Royale Energy's current Operating Margin % is -63.90%. Based on the distribution chart, Royale Energy ranks #820 out of 916 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers.
How does Royale Energy's Operating Margin % compare to GULTU and HGTXU?
According to the Oil & Gas industry distribution chart, Royale Energy ranks #820 out of 916 companies for Operating Margin %. This places Royale Energy in the lower half of its industry. The industry median Operating Margin % is 6.86. 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. 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 Royale Energy 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. Royale Energy's current Operating Margin % is -63.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royale Energy stock overvalued right now?
Based on GuruFocus' analysis, Royale Energy (ROYL) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.03, compared to a current price of $0.10 — trading 233.3% above its estimated fair value. The current Operating Margin % is -63.90%. 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 Royale Energy (ROYL), the current Operating Margin % is -63.90% as of Sep. 2025. 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.
Royale Energy Inc is an independent oil and natural gas producer. The company's business includes the production and sale of oil and natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of both exploratory and development wells, and sales of fractional working interests in wells to be drilled by Royale. Its wells and leases are located in the Sacramento Basin and San Joaquin Basin in California as well as in Utah, Texas, Oklahoma, and Louisiana.
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