Source Rock RoyaltiesSRRRF 40 Operating Margin % is 27.23% as of Mar. 2026, which is 1% below its 10-year median of 27.50. GuruFocus rates SRRRF with a GF Score™ of 40/100. The stock has 7 warning signs investors should review. Among 918 Oil & Gas companies, Source Rock Royalties ranks better than 81.48% on this metric.
Source Rock Royalties (OTCPK:SRRRF) 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.
Source Rock Royalties Operating Margin % Related Terms
Source Rock Royalties Operating Margin % Historical Data
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The historical data trend for Source Rock Royalties'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.
SRRRF vs WMB, EPD, KMI: Operating Margin % Comparison
For the Oil & Gas Midstream subindustry, Source Rock Royalties'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.
Source Rock Royalties Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Source Rock Royalties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Source Rock Royalties's Operating Margin % falls into.
Source Rock Royalties 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.
Source Rock Royalties'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.
Source Rock Royalties (SRRRF) has a Operating Margin % of 27.23% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Source Rock Royalties and its competitors. This is near median its historical median of 27.50. According to the industry distribution chart, Source Rock Royalties ranks #170 out of 918 companies in the Oil & Gas industry, placing it in the top 18.5%.
Is Source Rock Royalties' Operating Margin % too high?
Source Rock Royalties' current Operating Margin % of 27.23% is near median its 10-year median of 27.50. The Oil & Gas industry median Operating Margin % is 6.86. Source Rock Royalties' value of 27.23% is 296.9% above this industry median. Based on the distribution chart, Source Rock Royalties ranks #170 out of 918 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Source Rock Royalties has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does Source Rock Royalties' Operating Margin % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, Source Rock Royalties ranks #170 out of 918 companies for Operating Margin %. This places Source Rock Royalties in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Source Rock Royalties' value of 27.23% is 296.9% above this benchmark. While the company's 10-year median is 27.50 vs. the industry median of 6.86, Source Rock Royalties 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 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. Source Rock Royalties's current Operating Margin % of 27.23% is 296.9% 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 Source Rock Royalties 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. Source Rock Royalties's current Operating Margin % is 27.23%, which is near median its own 10-year median of 27.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Source Rock Royalties stock overvalued right now?
Source Rock Royalties (SRRRF) has a current Operating Margin % of 27.23%. The current Operating Margin % is 27.23%, which is near median its 10-year median of 27.50 and 296.9% above the Oil & Gas industry median of 6.86. Source Rock Royalties' overall GF Score™ is 40/100 with 7 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 Source Rock Royalties (SRRRF), the current Operating Margin % is 27.23% 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.
Source Rock Royalties Ltd is engaged in royalty revenue from oil and natural gas properties as reserves are produced by the operators over the economic life of the properties. It focused on acquiring and managing oil and gas royalties and mineral title interests. It has an oil-focused portfolio of royalty interests concentrated in S.E. Saskatchewan, central Alberta, and west-central Saskatchewan.
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