Diamondback EnergySTU:7DB -1.14%62 Operating Margin % is 36.01% as of Mar. 2026, which is 18% below its 10-year median of 44.13. GuruFocus rates STU:7DB with a GF Score™ of 62/100 and a GF Value™ of €164.91 (Fairly Valued). The stock has 6 warning signs investors should review. Among 916 Oil & Gas companies, Diamondback Energy ranks better than 85.59% on this metric.
Diamondback Energy (STU:7DB) 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.
Diamondback Energy Operating Margin % Related Terms
Diamondback Energy Operating Margin % Historical Data
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The historical data trend for Diamondback 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:7DB vs OXY, DVN, EOG: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Diamondback 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.
Diamondback Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diamondback Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Diamondback 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.
Diamondback 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.
Diamondback Energy (STU:7DB) has a Operating Margin % of 36.01% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Diamondback Energy and its competitors. This is 18% below median its historical median of 44.13. Over the past decade, Diamondback Energy's Operating Margin % has ranged from 19.42 to 68.18. According to the industry distribution chart, Diamondback Energy ranks #132 out of 916 companies in the Oil & Gas industry, placing it in the top 14.4%.
Is Diamondback Energy's Operating Margin % too high?
Diamondback Energy's current Operating Margin % of 36.01% is 18% below median its 10-year median of 44.13. Over the past 10 years, this metric has ranged from a low of 19.42 to a high of 68.18. The Oil & Gas industry median Operating Margin % is 6.86. Diamondback Energy's value of 36.01% is 424.9% above this industry median. Based on the distribution chart, Diamondback Energy ranks #132 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Diamondback Energy has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Diamondback Energy's Operating Margin % compare to OXY and DVN?
According to the Oil & Gas industry distribution chart, Diamondback Energy ranks #132 out of 916 companies for Operating Margin %. This places Diamondback Energy in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Diamondback Energy's value of 36.01% is 424.9% above this benchmark. Historically, Diamondback Energy's own Operating Margin % has ranged from 19.42 to 68.18 over the past decade. While the company's 10-year median is 44.13 vs. the industry median of 6.86, Diamondback 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. Diamondback Energy's current Operating Margin % of 36.01% is 424.9% 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 Diamondback 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. Diamondback Energy's current Operating Margin % is 36.01%, which is 18% below median its own 10-year median of 44.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondback Energy stock overvalued right now?
Based on GuruFocus' analysis, Diamondback Energy (STU:7DB) is currently considered Fairly Valued. The stock's GF Value™ is €164.91, compared to a current price of €160.18 — trading 2.9% below its estimated fair value. The current Operating Margin % is 36.01%, which is 18% below median its 10-year median of 44.13 and 424.9% above the Oil & Gas industry median of 6.86. Diamondback Energy's overall GF Score™ is 62/100 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 Diamondback Energy (STU:7DB), the current Operating Margin % is 36.01% 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 Diamondback Energy (STU:7DB) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondback Energy stock appears to be undervalued.
The current stock price of €160.18 is trading 2.9% below its estimated GF Value™ of €164.91.
GuruFocus considers Diamondback Energy to be Fairly Valued.
Key valuation signals for STU:7DB:
Operating Margin %: 36.01% (18% below median its 10-year median of 44.13)
GF Value™: €164.91 vs. price of €160.18 (2.9% below fair value)
Industry Position: 424.9% above the Oil & Gas median (#132 of 916)
No single metric tells the full story. See the STU:7DB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamondback is a crude oil and natural gas exploration and production firm whose operations represent a pure-play in the US Permian Basin. The company went public in 2012 and has established itself as a top-tier independent producer through disciplined acquisition and operational excellence. The company's most transformational transaction occurred in September 2024 with the completion of its $26 billion merger with Endeavor Energy Resources, which added around 470,000 net acres and doubled Diamondback's total acreage position. Diamondback boasts an enviable position in the Midland sub-basin, with some of the lowest unit costs among its Permian peers.
62GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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