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Hakuhodo DY Holdings (Hakuhodo DY Holdings) Operating Margin % : 5.79% (As of Dec. 2023)


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What is Hakuhodo DY Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Hakuhodo DY Holdings's Operating Income for the three months ended in Dec. 2023 was $99 Mil. Hakuhodo DY Holdings's Revenue for the three months ended in Dec. 2023 was $1,714 Mil. Therefore, Hakuhodo DY Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 5.79%.

Good Sign:

Hakuhodo DY Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.

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

HKUOY' s Operating Margin % Range Over the Past 10 Years
Min: 3.1   Med: 3.84   Max: 8
Current: 3.55


HKUOY's Operating Margin % is ranked better than
51.49% of 1037 companies
in the Media - Diversified industry
Industry Median: 3.31 vs HKUOY: 3.55

Hakuhodo DY Holdings's 5-Year Average Operating Margin % Growth Rate was 12.20% per year.

Hakuhodo DY Holdings's Operating Income for the three months ended in Dec. 2023 was $99 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $254 Mil.

Warning Sign:

Hakuhodo DY Holdings Inc has recorded a loss in operating income at least once over the past 3 years.


Hakuhodo DY Holdings Operating Margin % Historical Data

The historical data trend for Hakuhodo DY Holdings'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.

Hakuhodo DY Holdings Operating Margin % Chart

Hakuhodo DY Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.52 3.76 6.30 8.00 5.59

Hakuhodo DY Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 6.66 5.72 1.87 -1.22 5.79

Competitive Comparison of Hakuhodo DY Holdings's Operating Margin %

For the Advertising Agencies subindustry, Hakuhodo DY Holdings'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.


Hakuhodo DY Holdings's Operating Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Hakuhodo DY Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hakuhodo DY Holdings's Operating Margin % falls into.



Hakuhodo DY Holdings 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.

Hakuhodo DY Holdings's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=414.553 / 7415.121
=5.59 %

Hakuhodo DY Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=99.193 / 1713.769
=5.79 %

* 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.


Hakuhodo DY Holdings  (OTCPK:HKUOY) 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.


Hakuhodo DY Holdings Operating Margin % Related Terms

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Hakuhodo DY Holdings (Hakuhodo DY Holdings) Business Description

Traded in Other Exchanges
Address
5-3-1 Akasaka, Minato-ku, Tokyo, JPN, 107-6320
Hakuhodo DY Holdings Inc is a Japanese holding company that owns advertising companies, integrated media companies, and creative solutions companies. The company earns most of its revenue from its two largest segments, mass media services and marketing promotion. The mass media segments focus on television, newspaper, and magazine advertising. The company's marketing promotion segment focuses on Internet, creative, and promotional services. While the vast majority of the historical company's revenue was derived from Japan, Hakuhodo is expanding internationally through its over 250 subsidiaries around the world.

Hakuhodo DY Holdings (Hakuhodo DY Holdings) Headlines

From GuruFocus

David Herro Comments on Hakuhodo DY Holdings

By Holly LaFon Holly LaFon 04-08-2014