Woodside Energy GroupWDS -3.54%70 Operating Margin % is 31.14% as of Dec. 2025, which is 27% below its 10-year median of 42.49. GuruFocus rates WDS with a GF Score™ of 70/100 and a GF Value™ of $16.94 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 916 Oil & Gas companies, Woodside Energy Group ranks better than 88.76% on this metric.
Woodside Energy Group (NYSE:WDS) 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.
Woodside Energy Group Operating Margin % Related Terms
Woodside Energy Group Operating Margin % Historical Data
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The historical data trend for Woodside Energy Group'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.
WDS vs COP, EOG, OXY: Operating Margin % Comparison
For the Oil & Gas E&P subindustry, Woodside Energy Group'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.
Woodside Energy Group Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Woodside Energy Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Woodside Energy Group's Operating Margin % falls into.
Woodside Energy Group 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.
Woodside Energy Group'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.
Woodside Energy Group (WDS) has a Operating Margin % of 31.14% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Woodside Energy Group and its competitors. This is 27% below median its historical median of 42.49. Over the past decade, Woodside Energy Group's Operating Margin % has ranged from 3.72 to 61.11. According to the industry distribution chart, Woodside Energy Group ranks #103 out of 916 companies in the Oil & Gas industry, placing it in the top 11.2%.
Is Woodside Energy Group's Operating Margin % too high?
Woodside Energy Group's current Operating Margin % of 31.14% is 27% below median its 10-year median of 42.49. Over the past 10 years, this metric has ranged from a low of 3.72 to a high of 61.11. The Oil & Gas industry median Operating Margin % is 6.86. Woodside Energy Group's value of 31.14% is 353.9% above this industry median. Based on the distribution chart, Woodside Energy Group ranks #103 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Woodside Energy Group has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Woodside Energy Group's Operating Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Woodside Energy Group ranks #103 out of 916 companies for Operating Margin %. This places Woodside Energy Group in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Woodside Energy Group's value of 31.14% is 353.9% above this benchmark. Historically, Woodside Energy Group's own Operating Margin % has ranged from 3.72 to 61.11 over the past decade. While the company's 10-year median is 42.49 vs. the industry median of 6.86, Woodside Energy Group 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. Woodside Energy Group's current Operating Margin % of 31.14% is 353.9% 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 Woodside Energy Group 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. Woodside Energy Group's current Operating Margin % is 31.14%, which is 27% below median its own 10-year median of 42.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Woodside Energy Group stock overvalued right now?
Based on GuruFocus' analysis, Woodside Energy Group (WDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $16.94, compared to a current price of $19.06 — trading 12.5% above its estimated fair value. The current Operating Margin % is 31.14%, which is 27% below median its 10-year median of 42.49 and 353.9% above the Oil & Gas industry median of 6.86. Woodside Energy Group's overall GF Score™ is 70/100 with 5 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 Woodside Energy Group (WDS), the current Operating Margin % is 31.14% 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 Woodside Energy Group (WDS) Overvalued in 2026?
Based on GuruFocus' analysis, Woodside Energy Group stock appears to be overvalued.
The current stock price of $19.06 is trading 12.5% above its estimated GF Value™ of $16.94.
GuruFocus considers Woodside Energy Group to be Modestly Overvalued.
Key valuation signals for WDS:
Operating Margin %: 31.14% (27% below median its 10-year median of 42.49)
GF Value™: $16.94 vs. price of $19.06 (12.5% above fair value)
Industry Position: 353.9% above the Oil & Gas median (#103 of 916)
No single metric tells the full story. See the WDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Incorporated in 1954 and named after the small Victorian town of Woodside, Woodside's early exploration focus moved from Victoria's Gippsland Basin to Western Australia's Carnarvon Basin. First LNG production from the North West Shelf came in 1984. BHP Billiton and Shell each had 40% shareholdings before BHP sold out in 1994 and Shell sold down to 34%. In 2017 Shell sold its entire shareholding. Woodside is one of the most LNG-leveraged companies globally.
70GF Score
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