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KLX Energy Services Holdings (STU:KX4A) 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.
KLX Energy Services Holdings Operating Margin % Related Terms
KLX Energy Services Holdings 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.
KLX Energy Services Holdings Operating Margin % Chart
STU:KX4A vs RCON, KLNG, DTI: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, KLX Energy Services Holdings'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.
KLX Energy Services Holdings Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, KLX Energy Services Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where KLX Energy Services Holdings's Operating Margin % falls into.
KLX Energy Services Holdings 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.
KLX Energy Services Holdings (STU:KX4A) has a Operating Margin % of -8.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on KLX Energy Services Holdings and its competitors. According to the industry distribution chart, KLX Energy Services Holdings ranks #724 out of 918 companies in the Oil & Gas industry, placing it in the top 78.9%.
Is KLX Energy Services Holdings' Operating Margin % too high?
KLX Energy Services Holdings' current Operating Margin % is -8.36%. Based on the distribution chart, KLX Energy Services Holdings ranks #724 out of 918 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, KLX Energy Services Holdings has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does KLX Energy Services Holdings' Operating Margin % compare to RCON and KLNG?
According to the Oil & Gas industry distribution chart, KLX Energy Services Holdings ranks #724 out of 918 companies for Operating Margin %. This places KLX Energy Services Holdings in the lower half of its industry. The industry median Operating Margin % is 6.91. 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 6.91, 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. 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 KLX Energy Services Holdings and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLX Energy Services Holdings's current Operating Margin % is -8.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLX Energy Services Holdings stock overvalued right now?
Based on GuruFocus' analysis, KLX Energy Services Holdings (STU:KX4A) is currently considered Possible Value Trap. The stock's GF Value™ is €3.01, compared to a current price of €1.83 — trading 39.2% below its estimated fair value. The current Operating Margin % is -8.36%. KLX Energy Services Holdings' overall GF Score™ is 53/100 with 4 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 KLX Energy Services Holdings (STU:KX4A), the current Operating Margin % is -8.36% 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 KLX Energy Services Holdings (STU:KX4A) Overvalued in 2026?
Based on GuruFocus' analysis, KLX Energy Services Holdings stock appears to be undervalued.
The current stock price of €1.83 is trading 39.2% below its estimated GF Value™ of €3.01.
GuruFocus considers KLX Energy Services Holdings to be Possible Value Trap.
Key valuation signals for STU:KX4A:
Operating Margin %: -8.36%
GF Value™: €3.01 vs. price of €1.83 (39.2% below fair value)
No single metric tells the full story. See the STU:KX4A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KLX Energy Services Holdings Inc is a growth-oriented provider of diversified oilfield services to onshore oil and natural gas exploration and production (E&P) companies operating in both conventional and unconventional plays in all of the active basins throughout the United States. It serves the companies engaged in the exploration and development of onshore conventional and unconventional oil and natural gas reserves. Its products and services offerings include surface facilities and equipment, pressure control services, wireline services, fishing services, and engineered products. The company's segments include Southwest; Rocky Mountains and Northeast/Mid-Con region. It derives maximum revenue from Southwest region.
53GF Score
Get the complete analysis for STU:KX4A
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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