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3SBio, (FRA:YFK) Operating Margin % : 33.42% (As of Dec. 2016)


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What is 3SBio, Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. 3SBio,'s Operating Income for the six months ended in Dec. 2016 was €68.3 Mil. 3SBio,'s Revenue for the six months ended in Dec. 2016 was €204.5 Mil. Therefore, 3SBio,'s Operating Margin % for the quarter that ended in Dec. 2016 was 33.42%.

Good Sign:

3SBio Inc old operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for 3SBio,'s Operating Margin % or its related term are showing as below:

FRA:YFK' s Operating Margin % Range Over the Past 10 Years
Min: 19.23   Med: 26.79   Max: 35.26
Current: 30.36


FRA:YFK's Operating Margin % is not ranked
in the Biotechnology industry.
Industry Median: -168.78 vs FRA:YFK: 30.36

3SBio,'s 5-Year Average Operating Margin % Growth Rate was 11.40% per year.

3SBio,'s Operating Income for the six months ended in Dec. 2016 was €68.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2016 was €116.0 Mil.


3SBio, Operating Margin % Historical Data

The historical data trend for 3SBio,'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.

3SBio, Operating Margin % Chart

3SBio, Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec14 Dec15 Dec16
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.46 19.23 33.78 35.26 30.43

3SBio, Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
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 25.71 35.21 35.29 27.02 33.42

Competitive Comparison of 3SBio,'s Operating Margin %

For the Biotechnology subindustry, 3SBio,'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.


3SBio,'s Operating Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, 3SBio,'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where 3SBio,'s Operating Margin % falls into.



3SBio, 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.

3SBio,'s Operating Margin % for the fiscal year that ended in Dec. 2016 is calculated as

Operating Margin %=Operating Income (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=116.632 / 383.223
=30.43 %

3SBio,'s Operating Margin % for the quarter that ended in Dec. 2016 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=68.327 / 204.459
=33.42 %

* 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.


3SBio,  (FRA:YFK) 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.


3SBio, Operating Margin % Related Terms

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3SBio, (FRA:YFK) Business Description

Traded in Other Exchanges
N/A
Address
3SBio Inc is engaged in the healthcare sector based in China. It is a pharmaceutical products company and its core activities pertain to developing, manufacturing and marketing biopharmaceuticals. Its portfolio of products comprises of TPIAO and Yisaipu. TPIAO is the only commercialized recombinant human thrombopoietin (rhTPO) product in the world and Yisaipu is a TNF inhibibator product and accounts for the major share in the pharmaceutical industry in China. Most of the company's activities are focused on China while having a minor footprint in a foreign land.

3SBio, (FRA:YFK) Headlines

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