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Henderson Land Development Co (Henderson Land Development Co) Operating Margin % : 18.73% (As of Dec. 2023)


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What is Henderson Land Development Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Henderson Land Development Co's Operating Income for the six months ended in Dec. 2023 was $415 Mil. Henderson Land Development Co's Revenue for the six months ended in Dec. 2023 was $2,214 Mil. Therefore, Henderson Land Development Co's Operating Margin % for the quarter that ended in Dec. 2023 was 18.73%.

Warning Sign:

Henderson Land Development Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.6%.

The historical rank and industry rank for Henderson Land Development Co's Operating Margin % or its related term are showing as below:

HLDVF' s Operating Margin % Range Over the Past 10 Years
Min: 22.51   Med: 32.76   Max: 50.08
Current: 22.51


HLDVF's Operating Margin % is ranked better than
64.5% of 1783 companies
in the Real Estate industry
Industry Median: 13.31 vs HLDVF: 22.51

Henderson Land Development Co's 5-Year Average Operating Margin % Growth Rate was -3.60% per year.

Henderson Land Development Co's Operating Income for the six months ended in Dec. 2023 was $415 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $794 Mil.


Henderson Land Development Co Operating Margin % Historical Data

The historical data trend for Henderson Land Development Co'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.

Henderson Land Development Co Operating Margin % Chart

Henderson Land Development Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.42 50.08 38.00 26.43 22.51

Henderson Land Development Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 37.77 33.16 22.44 28.89 18.73

Competitive Comparison of Henderson Land Development Co's Operating Margin %

For the Real Estate - Diversified subindustry, Henderson Land Development Co'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.


Henderson Land Development Co's Operating Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Henderson Land Development Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Henderson Land Development Co's Operating Margin % falls into.



Henderson Land Development Co 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.

Henderson Land Development Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=794.771 / 3530.18
=22.51 %

Henderson Land Development Co'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 )
=414.607 / 2214.141
=18.73 %

* 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.


Henderson Land Development Co  (OTCPK:HLDVF) 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.


Henderson Land Development Co Operating Margin % Related Terms

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


Henderson Land Development Co (Henderson Land Development Co) Business Description

Traded in Other Exchanges
Address
8 Finance Street, 72nd -76th Floor, Two International Finance Centre, Central, Hong Kong, HKG
Henderson Land Development is a leading property developer in Hong Kong with a focus on urban redevelopment and farmland conversion. The company was founded in 1976, listed in 1981. Founder Lee Shau Kee is the controlling shareholder, and a series of disposals in December 2017 reduced his stake to below 72.8%. The share disposals were the first since 1993, lessening the possibility of a privatization. Lee stepped down in May 2019, succeeded by his two sons as joint chairmen and managing directors. Henderson Land also controls four listed entities directly, including a 33.4% stake in Hong Kong Ferry, a 69% stake in Henderson Investment, a 41.5% stake in Hong Kong and China Gas, and a 50.1% stake in Miramar Hotel & Investment.

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