TOP ShipsTOPS +1.80%49 Operating Margin % is 21.96% as of Dec. 2025, which is 17% below its 10-year median of 26.45. GuruFocus rates TOPS with a GF Score™ of 49/100 and a GF Value™ of $4.24 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 916 Oil & Gas companies, TOP Ships ranks better than 87.12% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. TOP Ships's Operating Income for the
six
months ended in Dec. 2025 was $8.04 Mil. TOP Ships's Revenue for the
six
months ended in Dec. 2025 was $36.60 Mil. Therefore, TOP Ships's Operating Margin % for the quarter that ended in Dec. 2025 was 21.96%.
Good Sign:
TOP Ships Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for TOP Ships's Operating Margin % or its related term are showing as below:
TOPS'
s Operating Margin % Range Over the Past 10 Years
Min: -9.47 Med: 26.45 Max: 40.35
Current: 32.68
TOPS's Operating Margin % is ranked better than 87.12% of 916
companies
in the Oil & Gas industry
Industry Median: 6.86
vs TOPS: 32.68
TOP Ships's 5-Year Average Operating Margin % Growth Rate was 10.10% per year.
TOP Ships's Operating Income for the
six
months ended in Dec. 2025 was $8.04 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $26.28 Mil.
TOP Ships (AMEX:TOPS) 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.
TOP Ships Operating Margin % Related Terms
TOP Ships Operating Margin % Historical Data
* Premium members only.
The historical data trend for TOP Ships'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.
TOPS vs RBNE, CWPE, MARPS: Operating Margin % Comparison
For the Oil & Gas Midstream subindustry, TOP Ships'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.
TOP Ships Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, TOP Ships's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TOP Ships'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.
TOP Ships'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.
TOP Ships (TOPS) has a Operating Margin % of 21.96% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on TOP Ships and its competitors. This is 17% below median its historical median of 26.45. According to the industry distribution chart, TOP Ships ranks #118 out of 916 companies in the Oil & Gas industry, placing it in the top 12.9%.
Is TOP Ships' Operating Margin % too high?
TOP Ships' current Operating Margin % of 21.96% is 17% below median its 10-year median of 26.45. The Oil & Gas industry median Operating Margin % is 6.86. TOP Ships' value of 21.96% is 220.1% above this industry median. Based on the distribution chart, TOP Ships ranks #118 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, TOP Ships has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TOP Ships' Operating Margin % compare to RBNE and CWPE?
According to the Oil & Gas industry distribution chart, TOP Ships ranks #118 out of 916 companies for Operating Margin %. This places TOP Ships in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. TOP Ships' value of 21.96% is 220.1% above this benchmark. While the company's 10-year median is 26.45 vs. the industry median of 6.86, TOP Ships 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. TOP Ships's current Operating Margin % of 21.96% is 220.1% 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 TOP Ships 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. TOP Ships's current Operating Margin % is 21.96%, which is 17% below median its own 10-year median of 26.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOP Ships stock overvalued right now?
Based on GuruFocus' analysis, TOP Ships (TOPS) is currently considered Possible Value Trap. The stock's GF Value™ is $4.24, compared to a current price of $0.91 — trading 78.6% below its estimated fair value. The current Operating Margin % is 21.96%, which is 17% below median its 10-year median of 26.45 and 220.1% above the Oil & Gas industry median of 6.86. TOP Ships' overall GF Score™ is 49/100 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 TOP Ships (TOPS), the current Operating Margin % is 21.96% as of Dec. 2025. 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 TOP Ships (TOPS) Overvalued in 2026?
Based on GuruFocus' analysis, TOP Ships stock appears to be undervalued.
The current stock price of $0.91 is trading 78.6% below its estimated GF Value™ of $4.24.
GuruFocus considers TOP Ships to be Possible Value Trap.
Key valuation signals for TOPS:
Operating Margin %: 21.96% (17% below median its 10-year median of 26.45)
GF Value™: $4.24 vs. price of $0.91 (78.6% below fair value)
Industry Position: 220.1% above the Oil & Gas median (#118 of 916)
No single metric tells the full story. See the TOPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOP Ships Inc owns tanker vessels throughout the world. The Company is an international owner and operator of modern, fuel-efficient eco-tanker vessels, focusing on the transportation of crude oil, petroleum products (both clean and dirty), and bulk liquid chemicals. It generates revenue from the Time Charter agreements. The company operates in two reportable segments: (i) the tanker segment and (ii) the megayacht segment.
49GF Score
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