Omnova Solutions (Omnova Solutions) Operating Margin % : 0.45% (As of Feb. 2020)

Omnova Solutions Operating Margin % Chart

Omnova Solutions Annual Data
	Trend	Nov10	Nov11	Nov12	Nov13	Nov14	Nov15	Nov16	Nov17	Nov18	Nov19
Operating Margin %		Get a 7-Day Free Trial					4.84	7.21	6.93	7.05	4.78

Omnova Solutions Quarterly Data
	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20
Operating Margin %	Get a 7-Day Free Trial															0.12	5.25	6.34	7.03	0.45

Competitive Comparison of Omnova Solutions's Operating Margin %

For the Specialty Chemicals subindustry, Omnova Solutions'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.

Omnova Solutions's Operating Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Omnova Solutions's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Omnova Solutions's Operating Margin % falls into.

Omnova Solutions 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.

Omnova Solutions's Operating Margin % for the fiscal year that ended in Nov. 2019 is calculated as

Omnova Solutions's Operating Margin % for the quarter that ended in Feb. 2020 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.

Omnova Solutions  (NYSE:OMN) 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.

Omnova Solutions Operating Margin % Related Terms

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Omnova Solutions (Omnova Solutions) Business Description