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Star Group LPSGU -0.08%79 Operating Margin % is 16.84% as of Mar. 2026, which is 321% above its 10-year median of 4.00. GuruFocus rates SGU with a GF Score™ of 79/100 and a GF Value™ of $12.68 (Fairly Valued). The stock has 6 warning signs investors should review. Among 918 Oil & Gas companies, Star Group LP ranks worse than 50.87% on this metric.
Star Group LP (NYSE:SGU) 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.
Star Group LP Operating Margin % Related Terms
Star Group LP Operating Margin % Historical Data
* Premium members only.
The historical data trend for Star Group LP'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.
SGU vs CLNE, FGPR, BDCO: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Star Group LP'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.
Star Group LP Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Star Group LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Star Group LP'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.
Star Group LP'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.
Star Group LP (SGU) has a Operating Margin % of 16.84% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Star Group LP and its competitors. This is 321% above median its historical median of 4.00. Over the past decade, Star Group LP's Operating Margin % has ranged from 2.98 to 6.61. According to the industry distribution chart, Star Group LP ranks #467 out of 918 companies in the Oil & Gas industry, placing it in the top 50.9%.
Is Star Group LP's Operating Margin % too high?
Star Group LP's current Operating Margin % of 16.84% is 321% above median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 2.98 to a high of 6.61. The Oil & Gas industry median Operating Margin % is 7.11. Star Group LP's value of 16.84% is 136.8% above this industry median. Based on the distribution chart, Star Group LP ranks #467 out of 918 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Star Group LP has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Star Group LP's Operating Margin % compare to CLNE and FGPR?
According to the Oil & Gas industry distribution chart, Star Group LP ranks #467 out of 918 companies for Operating Margin %. This places Star Group LP in the lower half of its industry. The industry median Operating Margin % is 7.11. Star Group LP's value of 16.84% is 136.8% above this benchmark. Historically, Star Group LP's own Operating Margin % has ranged from 2.98 to 6.61 over the past decade. While the company's 10-year median is 4.00 vs. the industry median of 7.11, Star Group LP 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 7.11, based on 918 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. Star Group LP's current Operating Margin % of 16.84% is 136.8% 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 Star Group LP and its competitors. For the Oil & Gas industry, the median Operating Margin % is 7.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Star Group LP's current Operating Margin % is 16.84%, which is 321% above median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Group LP stock overvalued right now?
Based on GuruFocus' analysis, Star Group LP (SGU) is currently considered Fairly Valued. The stock's GF Value™ is $12.68, compared to a current price of $12.54 — trading 1.1% below its estimated fair value. The current Operating Margin % is 16.84%, which is 321% above median its 10-year median of 4.00 and 136.8% above the Oil & Gas industry median of 7.11. Star Group LP's overall GF Score™ is 79/100 with 6 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 Star Group LP (SGU), the current Operating Margin % is 16.84% 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 Star Group LP (SGU) Overvalued in 2026?
Based on GuruFocus' analysis, Star Group LP stock appears to be undervalued.
The current stock price of $12.54 is trading 1.1% below its estimated GF Value™ of $12.68.
GuruFocus considers Star Group LP to be Fairly Valued.
Key valuation signals for SGU:
Operating Margin %: 16.84% (321% above median its 10-year median of 4.00)
GF Value™: $12.68 vs. price of $12.54 (1.1% below fair value)
Industry Position: 136.8% above the Oil & Gas median (#467 of 918)
No single metric tells the full story. See the SGU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Star Group LP is a home heating oil and propane distributor and services provider with one reportable operating segment that principally provides heating related services to residential and commercial customers. It serves residential and commercial customers whose primary use is to heat their homes and buildings in the Northeast and Mid-Atlantic U.S. regions. The company derives the majority of revenue from Petroleum products, which consist of home heating oil and propane as well as diesel fuel and gasoline.
79GF Score
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