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Measurement Specialties (FRA:MEG) Operating Margin % : 4.19% (As of Jun. 2014)


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What is Measurement Specialties Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Measurement Specialties's Operating Income for the three months ended in Jun. 2014 was €3.5 Mil. Measurement Specialties's Revenue for the three months ended in Jun. 2014 was €84.0 Mil. Therefore, Measurement Specialties's Operating Margin % for the quarter that ended in Jun. 2014 was 4.19%.

Good Sign:

Measurement Specialties Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Measurement Specialties's Operating Margin % or its related term are showing as below:

FRA:MEG' s Operating Margin % Range Over the Past 10 Years
Min: -19.64   Med: 6.9   Max: 14.11
Current: 9.9


FRA:MEG's Operating Margin % is not ranked
in the Hardware industry.
Industry Median: 3.44 vs FRA:MEG: 9.90

Measurement Specialties's 5-Year Average Operating Margin % Growth Rate was 18.50% per year.

Measurement Specialties's Operating Income for the three months ended in Jun. 2014 was €3.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was €31.0 Mil.


Measurement Specialties Operating Margin % Historical Data

The historical data trend for Measurement Specialties'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.

* Premium members only.

Measurement Specialties Operating Margin % Chart

Measurement Specialties Annual Data
Trend Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.24 13.15 11.47 11.69 12.12

Measurement Specialties Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.55 12.58 11.07 12.31 4.19

Competitive Comparison of Measurement Specialties's Operating Margin %

For the Scientific & Technical Instruments subindustry, Measurement Specialties'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.


Measurement Specialties's Operating Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Measurement Specialties's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Measurement Specialties's Operating Margin % falls into.



Measurement Specialties 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.

Measurement Specialties's Operating Margin % for the fiscal year that ended in Mar. 2014 is calculated as

Operating Margin %=Operating Income (A: Mar. 2014 ) / Revenue (A: Mar. 2014 )
=36.173 / 298.357
=12.12 %

Measurement Specialties's Operating Margin % for the quarter that ended in Jun. 2014 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=3.52 / 83.999
=4.19 %

* 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.


Measurement Specialties  (FRA:MEG) 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 Nokia’s 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.


Measurement Specialties Operating Margin % Related Terms

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Measurement Specialties (FRA:MEG) Business Description

Traded in Other Exchanges
N/A
Address
Measurement Specialties, Inc. is a New Jersey corporation organized in 1981. The Company is engaged in the design, development and manufacture of sensors and sensor-based systems for original equipment manufacturers (OEM) and end users, based on a broad portfolio of proprietary technology and typically characterized by the MEAS brand name. The Company is a multi-national corporation with fifteen main manufacturing facilities strategically located in the United States, China and Europe, enabling the Company to produce and market an array of sensors that use advanced technologies to measure precise ranges of physical characteristics. These sensors are used for engine and vehicle, medical, general industrial, consumer and home appliance, military/aerospace, and test and measurement applications. The Company's products include sensors for measuring pressure, linear/rotary position, force, torque, piezoelectric polymer film sensors, custom microstructures, load cells, vibrations and acceleration, optical absorption, humidity, gas concentration, gas flow rate, temperature, fluid properties and fluid level. The Company's advanced technologies include piezoresistive silicon, polymer and ceramic piezoelectric materials, application specific integrated circuits, micro-electromechanical systems ('MEMS'), foil strain gauges, electromagnetic force balance systems, fluid capacitive devices, linear and rotational variable differential transformers, anisotropic magneto-resistive devices, electromagnetic displacement sensors, hygroscopic capacitive structures, ultrasonic measurement systems, optical measurement systems, negative thermal coefficient ('NTC') ceramic sensors, 3-6 DOF (degree of freedom) force/torque structures, complex mechanical resonators, magnetic reed switches, high frequency multipoint scanning algorithms, and high precision submersible hydrostatic level detection. The Company's competitors include small independent companies and divisions of large corporations such as Danaher, General Electric, Schneider-Electric and Honeywell.