Birchcliff EnergySTU:39B +0.05%64 Operating Margin % is 32.27% as of Mar. 2026, which is 81% above its 10-year median of 17.86. GuruFocus rates STU:39B with a GF Score™ of 64/100 and a GF Value™ of €3.85 (Fairly Valued). The stock has 6 warning signs investors should review. Among 916 Oil & Gas companies, Birchcliff Energy ranks better than 72.71% on this metric.
Birchcliff Energy Ltd has recorded a loss in operating income at least once over the past 3 years.
Birchcliff Energy (STU:39B) 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.
Birchcliff Energy Operating Margin % Related Terms
Birchcliff Energy Operating Margin % Historical Data
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The historical data trend for Birchcliff 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.
STU:39B vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Birchcliff 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.
Birchcliff Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Birchcliff Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Birchcliff 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.
Birchcliff Energy'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.
Birchcliff Energy (STU:39B) has a Operating Margin % of 32.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Birchcliff Energy and its competitors. This is 81% above median its historical median of 17.86. Over the past decade, Birchcliff Energy's Operating Margin % has ranged from 1.82 to 48.74. According to the industry distribution chart, Birchcliff Energy ranks #250 out of 916 companies in the Oil & Gas industry, placing it in the top 27.3%.
Is Birchcliff Energy's Operating Margin % too high?
Birchcliff Energy's current Operating Margin % of 32.27% is 81% above median its 10-year median of 17.86. Over the past 10 years, this metric has ranged from a low of 1.82 to a high of 48.74. The Oil & Gas industry median Operating Margin % is 6.86. Birchcliff Energy's value of 32.27% is 370.4% above this industry median. Based on the distribution chart, Birchcliff Energy ranks #250 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Birchcliff Energy has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Birchcliff Energy's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Birchcliff Energy ranks #250 out of 916 companies for Operating Margin %. This puts Birchcliff Energy in the upper half of its industry. The industry median Operating Margin % is 6.86. Birchcliff Energy's value of 32.27% is 370.4% above this benchmark. Historically, Birchcliff Energy's own Operating Margin % has ranged from 1.82 to 48.74 over the past decade. While the company's 10-year median is 17.86 vs. the industry median of 6.86, Birchcliff Energy 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. Birchcliff Energy's current Operating Margin % of 32.27% is 370.4% 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 Birchcliff 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. Birchcliff Energy's current Operating Margin % is 32.27%, which is 81% above median its own 10-year median of 17.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Birchcliff Energy stock overvalued right now?
Based on GuruFocus' analysis, Birchcliff Energy (STU:39B) is currently considered Fairly Valued. The stock's GF Value™ is €3.85, compared to a current price of €3.98 — trading 3.5% above its estimated fair value. The current Operating Margin % is 32.27%, which is 81% above median its 10-year median of 17.86 and 370.4% above the Oil & Gas industry median of 6.86. Birchcliff Energy's overall GF Score™ is 64/100 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 Birchcliff Energy (STU:39B), the current Operating Margin % is 32.27% 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 Birchcliff Energy (STU:39B) Overvalued in 2026?
Based on GuruFocus' analysis, Birchcliff Energy stock appears to be overvalued.
The current stock price of €3.98 is trading 3.5% above its estimated GF Value™ of €3.85.
GuruFocus considers Birchcliff Energy to be Fairly Valued.
Key valuation signals for STU:39B:
Operating Margin %: 32.27% (81% above median its 10-year median of 17.86)
GF Value™: €3.85 vs. price of €3.98 (3.5% above fair value)
Industry Position: 370.4% above the Oil & Gas median (#250 of 916)
No single metric tells the full story. See the STU:39B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Birchcliff Energy Ltd is an intermediate oil and natural gas company based in Calgary, Alberta, with operations focused on the exploration and development of the Montney Resource Play in Alberta. The company has a 100% working interest in its Pouce Coupe Gas Plant and two oil batteries, as well as various working interests in numerous other gas plants, oil batteries, compressors, facilities and infrastructure. Birchcliff operates the Gordondale Gas Plant owned by Altagas, with 100% of its throughput consisting of Birchcliff's production.
64GF Score
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