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Melbourne Enterprises (HKSE:00158) Operating Margin % : 70.88% (As of Sep. 2023)


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What is Melbourne Enterprises Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Melbourne Enterprises's Operating Income for the six months ended in Sep. 2023 was HK$56.9 Mil. Melbourne Enterprises's Revenue for the six months ended in Sep. 2023 was HK$80.2 Mil. Therefore, Melbourne Enterprises's Operating Margin % for the quarter that ended in Sep. 2023 was 70.88%.

Warning Sign:

Melbourne Enterprises Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.9%.

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

HKSE:00158' s Operating Margin % Range Over the Past 10 Years
Min: 61.44   Med: 77.28   Max: 80.55
Current: 63.73


HKSE:00158's Operating Margin % is ranked better than
91.85% of 1780 companies
in the Real Estate industry
Industry Median: 13.03 vs HKSE:00158: 63.73

Melbourne Enterprises's 5-Year Average Operating Margin % Growth Rate was -4.90% per year.

Melbourne Enterprises's Operating Income for the six months ended in Sep. 2023 was HK$56.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was HK$100.6 Mil.


Melbourne Enterprises Operating Margin % Historical Data

The historical data trend for Melbourne Enterprises'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.

Melbourne Enterprises Operating Margin % Chart

Melbourne Enterprises Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 78.91 75.65 61.44 69.57 63.73

Melbourne Enterprises Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 59.34 69.00 70.15 56.35 70.88

Competitive Comparison of Melbourne Enterprises's Operating Margin %

For the Real Estate Services subindustry, Melbourne Enterprises'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.


Melbourne Enterprises's Operating Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Melbourne Enterprises's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Melbourne Enterprises's Operating Margin % falls into.



Melbourne Enterprises 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.

Melbourne Enterprises's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=100.626 / 157.894
=63.73 %

Melbourne Enterprises's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=56.851 / 80.205
=70.88 %

* 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.


Melbourne Enterprises  (HKSE:00158) 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.


Melbourne Enterprises Operating Margin % Related Terms

Thank you for viewing the detailed overview of Melbourne Enterprises's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Melbourne Enterprises (HKSE:00158) Business Description

Traded in Other Exchanges
N/A
Address
33 Queen’s Road Central, Rooms 2102-4, Melbourne Plaza, Hong Kong, HKG
Melbourne Enterprises Ltd is an investment holding company. The company's only operating segment is property investment. It generates maximum revenue from the Rental income. The properties under the company include Melbourne Plaza, Kimley Commercial Building, as well as residential properties in the Foshan Golf Club project.
Executives
Chung Kin Shu Kenneth 2304 Executor or administrator
Chung Yin Shu Frederick 2304 Executor or administrator

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