Frontera EnergyTSX:FEC -48.07%43 Operating Margin % is 3.10% as of Mar. 2026, which is 76% below its 10-year median of 13.06. GuruFocus rates TSX:FEC with a GF Score™ of 43/100 and a GF Value™ of C$7.10 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 916 Oil & Gas companies, Frontera Energy ranks worse than 75.33% on this metric.
Frontera Energy (TSX:FEC) 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.
Frontera Energy Operating Margin % Related Terms
Frontera Energy Operating Margin % Historical Data
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The historical data trend for Frontera 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.
TSX:FEC vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Frontera 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.
Frontera Energy Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Frontera Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Frontera 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.
Frontera 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.
Frontera Energy (TSX:FEC) has a Operating Margin % of 3.10% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Frontera Energy and its competitors. This is 76% below median its historical median of 13.06. According to the industry distribution chart, Frontera Energy ranks #690 out of 916 companies in the Oil & Gas industry, placing it in the top 75.3%.
Is Frontera Energy's Operating Margin % too high?
Frontera Energy's current Operating Margin % of 3.10% is 76% below median its 10-year median of 13.06. The Oil & Gas industry median Operating Margin % is 6.86. Frontera Energy's value of 3.10% is 54.8% below this industry median. Based on the distribution chart, Frontera Energy ranks #690 out of 916 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Frontera Energy has a GF Score™ of 43/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frontera Energy's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Frontera Energy ranks #690 out of 916 companies for Operating Margin %. This places Frontera Energy in the lower half of its industry. The industry median Operating Margin % is 6.86. Frontera Energy's value of 3.10% is 54.8% below this benchmark. While the company's 10-year median is 13.06 vs. the industry median of 6.86, Frontera Energy has consistently been below 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. Frontera Energy's current Operating Margin % of 3.10% is 54.8% below 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 Frontera 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. Frontera Energy's current Operating Margin % is 3.10%, which is 76% below median its own 10-year median of 13.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontera Energy stock overvalued right now?
Based on GuruFocus' analysis, Frontera Energy (TSX:FEC) is currently considered Modestly Overvalued. The stock's GF Value™ is C$7.10, compared to a current price of C$8.47 — trading 19.3% above its estimated fair value. The current Operating Margin % is 3.10%, which is 76% below median its 10-year median of 13.06 and 54.8% below the Oil & Gas industry median of 6.86. Frontera Energy's overall GF Score™ is 43/100 with 8 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 Frontera Energy (TSX:FEC), the current Operating Margin % is 3.10% 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 Frontera Energy (TSX:FEC) Overvalued in 2026?
Based on GuruFocus' analysis, Frontera Energy stock appears to be overvalued.
The current stock price of C$8.47 is trading 19.3% above its estimated GF Value™ of C$7.10.
GuruFocus considers Frontera Energy to be Modestly Overvalued.
Key valuation signals for TSX:FEC:
Operating Margin %: 3.10% (76% below median its 10-year median of 13.06)
GF Value™: C$7.10 vs. price of C$8.47 (19.3% above fair value)
Industry Position: 54.8% below the Oil & Gas median (#690 of 916)
No single metric tells the full story. See the TSX:FEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontera Energy Corp is a Canadian-based company engaged in the exploration, development, and production of crude oil and natural gas reserves in South America. It operates in three reportable segments such as Colombia which includes all upstream business activities of exploration and production in Colombia, Guyana Includes all offshore business activities of exploration in Guyana. and Infrastructure Colombia Includes the Companies investment in certain infrastructure, midstream and other assets, including storage, port, the reverse osmosis water treatment facility (SAARA), the palm oil plantation, other facilities in Colombia and the Companies investment in pipelines. The majority of its revenue is generated from the Colombia segment.
43GF Score
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