TotalEnergies SEXSWX:TTE 70 Operating Margin % is 20.51% as of Mar. 2026, which is 109% above its 10-year median of 9.82. GuruFocus rates XSWX:TTE with a GF Score™ of 70/100 and a GF Value™ of CHF54.40 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 916 Oil & Gas companies, TotalEnergies SE ranks better than 64.52% on this metric.
TotalEnergies SE (XSWX:TTE) 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.
TotalEnergies SE Operating Margin % Related Terms
TotalEnergies SE Operating Margin % Historical Data
* Premium members only.
The historical data trend for TotalEnergies SE'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.
XSWX:TTE vs XOM, CVX: Operating Margin % Comparison
For the Oil & Gas Integrated subindustry, TotalEnergies SE'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.
TotalEnergies SE Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, TotalEnergies SE's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TotalEnergies SE'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.
TotalEnergies SE'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.
TotalEnergies SE (XSWX:TTE) has a Operating Margin % of 20.51% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on TotalEnergies SE and its competitors. This is 109% above median its historical median of 9.82. According to the industry distribution chart, TotalEnergies SE ranks #325 out of 916 companies in the Oil & Gas industry, placing it in the top 35.5%.
Is TotalEnergies SE's Operating Margin % too high?
TotalEnergies SE's current Operating Margin % of 20.51% is 109% above median its 10-year median of 9.82. The Oil & Gas industry median Operating Margin % is 6.86. TotalEnergies SE's value of 20.51% is 199% above this industry median. Based on the distribution chart, TotalEnergies SE ranks #325 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, TotalEnergies SE has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TotalEnergies SE's Operating Margin % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, TotalEnergies SE ranks #325 out of 916 companies for Operating Margin %. This puts TotalEnergies SE in the upper half of its industry. The industry median Operating Margin % is 6.86. TotalEnergies SE's value of 20.51% is 199% above this benchmark. While the company's 10-year median is 9.82 vs. the industry median of 6.86, TotalEnergies SE 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. TotalEnergies SE's current Operating Margin % of 20.51% is 199% 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 TotalEnergies SE 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. TotalEnergies SE's current Operating Margin % is 20.51%, which is 109% above median its own 10-year median of 9.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TotalEnergies SE stock overvalued right now?
Based on GuruFocus' analysis, TotalEnergies SE (XSWX:TTE) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF54.40, compared to a current price of CHF66.42 — trading 22.1% above its estimated fair value. The current Operating Margin % is 20.51%, which is 109% above median its 10-year median of 9.82 and 199% above the Oil & Gas industry median of 6.86. TotalEnergies SE's overall GF Score™ is 70/100 with 2 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 TotalEnergies SE (XSWX:TTE), the current Operating Margin % is 20.51% 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 TotalEnergies SE (XSWX:TTE) Overvalued in 2026?
Based on GuruFocus' analysis, TotalEnergies SE stock appears to be overvalued.
The current stock price of CHF66.42 is trading 22.1% above its estimated GF Value™ of CHF54.40.
GuruFocus considers TotalEnergies SE to be Modestly Overvalued.
Key valuation signals for XSWX:TTE:
Operating Margin %: 20.51% (109% above median its 10-year median of 9.82)
GF Value™: CHF54.40 vs. price of CHF66.42 (22.1% above fair value)
Industry Position: 199% above the Oil & Gas median (#325 of 916)
No single metric tells the full story. See the XSWX:TTE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TotalEnergies is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2025, it produced 1.5 million barrels of liquids and 5.4 billion cubic feet of natural gas per day. At the end of 2025, reserves stood at 11.2 billion barrels of oil equivalent, 55% of which are liquids. During 2025, it had LNG sales of 43.9 million metric tons. The company owns interests in refineries with a capacity of nearly 1.8 million barrels a day, primarily in Europe, distributes refined products in 65 countries, and manufactures commodity and specialty chemicals. At year-end, its gross installed renewable power generation capacity was 34 gigawatts.
70GF Score
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