Petrovietnam Drilling & Well Service (STC:PVD) 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.
Petrovietnam Drilling & Well Service Operating Margin % Related Terms
Petrovietnam Drilling & Well Service 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.
Petrovietnam Drilling & Well Service Operating Margin % Chart
STC:PVD vs NE, RIG, VAL: Operating Margin % Comparison
For the Oil & Gas Drilling subindustry, Petrovietnam Drilling & Well Service'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.
Petrovietnam Drilling & Well Service Operating Margin % vs Oil & Gas Industry
Petrovietnam Drilling & Well Service 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.
Petrovietnam Drilling & Well Service (STC:PVD) has a Operating Margin % of 12.34% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Petrovietnam Drilling & Well Service and its competitors. This is 514% above median its historical median of 2.01. According to the industry distribution chart, Petrovietnam Drilling & Well Service ranks #360 out of 916 companies in the Oil & Gas industry, placing it in the top 39.3%.
Is Petrovietnam Drilling & Well Service's Operating Margin % too high?
Petrovietnam Drilling & Well Service's current Operating Margin % of 12.34% is 514% above median its 10-year median of 2.01. The Oil & Gas industry median Operating Margin % is 6.86. Petrovietnam Drilling & Well Service's value of 12.34% is 79.9% above this industry median. Based on the distribution chart, Petrovietnam Drilling & Well Service ranks #360 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Petrovietnam Drilling & Well Service has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Petrovietnam Drilling & Well Service's Operating Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Petrovietnam Drilling & Well Service ranks #360 out of 916 companies for Operating Margin %. This puts Petrovietnam Drilling & Well Service in the upper half of its industry. The industry median Operating Margin % is 6.86. Petrovietnam Drilling & Well Service's value of 12.34% is 79.9% above this benchmark. While the company's 10-year median is 2.01 vs. the industry median of 6.86, Petrovietnam Drilling & Well Service 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. Petrovietnam Drilling & Well Service's current Operating Margin % of 12.34% is 79.9% 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 Petrovietnam Drilling & Well Service 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. Petrovietnam Drilling & Well Service's current Operating Margin % is 12.34%, which is 514% above median its own 10-year median of 2.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petrovietnam Drilling & Well Service stock overvalued right now?
Based on GuruFocus' analysis, Petrovietnam Drilling & Well Service (STC:PVD) is currently considered Possible Value Trap. The stock's GF Value™ is ₫47,393.82, compared to a current price of ₫31,950.00 — trading 32.6% below its estimated fair value. The current Operating Margin % is 12.34%, which is 514% above median its 10-year median of 2.01 and 79.9% above the Oil & Gas industry median of 6.86. Petrovietnam Drilling & Well Service's overall GF Score™ is 89/100 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 Petrovietnam Drilling & Well Service (STC:PVD), the current Operating Margin % is 12.34% 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 Petrovietnam Drilling & Well Service (STC:PVD) Overvalued in 2026?
Based on GuruFocus' analysis, Petrovietnam Drilling & Well Service stock appears to be undervalued.
The current stock price of ₫31,950.00 is trading 32.6% below its estimated GF Value™ of ₫47,393.82.
GuruFocus considers Petrovietnam Drilling & Well Service to be Possible Value Trap.
Key valuation signals for STC:PVD:
Operating Margin %: 12.34% (514% above median its 10-year median of 2.01)
GF Value™: ₫47,393.82 vs. price of ₫31,950.00 (32.6% below fair value)
Industry Position: 79.9% above the Oil & Gas median (#360 of 916)
No single metric tells the full story. See the STC:PVD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petrovietnam Drilling & Well Service Business Description
Petrovietnam Drilling & Well Service Corp is a provider of drilling rigs and technical services for the exploration and exploitation of oil and gas industry locally and internationally. The company operates through three segments namely Drilling services, Trading, and Other services. Its Drilling services segment offers drilling rigs and drilling services. The Trading segment produces material and equipment for drilling-related activities. Its Other services segment is involved in administering well services, wireline logging, oil spill control service, drilling manpower supply service, investment-management project consulting service, management consulting service and other related services. Geographically it operates in Vietnam, Malaysia, Myanmar, Algeria.
89GF Score
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