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GFT Technologies SE (XTER:GFT) Operating Margin % : 9.94% (As of Dec. 2023)


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What is GFT Technologies SE Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. GFT Technologies SE's Operating Income for the three months ended in Dec. 2023 was €20.6 Mil. GFT Technologies SE's Revenue for the three months ended in Dec. 2023 was €207.1 Mil. Therefore, GFT Technologies SE's Operating Margin % for the quarter that ended in Dec. 2023 was 9.94%.

Good Sign:

GFT Technologies SE operating margin is expanding. Margin expansion is usually a good sign.

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

XTER:GFT' s Operating Margin % Range Over the Past 10 Years
Min: 4.01   Med: 8.19   Max: 9.47
Current: 8.75


XTER:GFT's Operating Margin % is ranked better than
67.19% of 2755 companies
in the Software industry
Industry Median: 3.18 vs XTER:GFT: 8.75

GFT Technologies SE's 5-Year Average Operating Margin % Growth Rate was 11.10% per year.

GFT Technologies SE's Operating Income for the three months ended in Dec. 2023 was €20.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was €70.2 Mil.


GFT Technologies SE Operating Margin % Historical Data

The historical data trend for GFT Technologies SE'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.

GFT Technologies SE Operating Margin % Chart

GFT Technologies SE 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 5.30 4.01 7.65 8.73 8.75

GFT Technologies SE 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 8.55 7.78 7.52 9.67 9.94

Competitive Comparison of GFT Technologies SE's Operating Margin %

For the Information Technology Services subindustry, GFT Technologies SE'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.


GFT Technologies SE's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, GFT Technologies SE's Operating Margin % distribution charts can be found below:

* The bar in red indicates where GFT Technologies SE's Operating Margin % falls into.



GFT Technologies SE 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.

GFT Technologies SE'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 )
=70.169 / 801.737
=8.75 %

GFT Technologies SE'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 )
=20.597 / 207.125
=9.94 %

* 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.


GFT Technologies SE  (XTER:GFT) 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.


GFT Technologies SE Operating Margin % Related Terms

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


GFT Technologies SE (XTER:GFT) Business Description

Traded in Other Exchanges
Address
Schelmenwasenstrasse 34, Stuttgart, BW, DEU, 70567
GFT Technologies SE is engaged in shaping the digital transformation of companies in the financial and insurance sectors, as well as in the manufacturing industry. As an IT service provider and developer of digital solutions, It offers consulting, development, and implementation skills across all aspects of pioneering technologies from cloud engineering to artificial intelligence and blockchain/DLT. The company has two operating segments; The Americas, UK & APAC comprises operating companies in the following countries: Brazil Costa Rica, Singapore, Hong Kong, the United Kingdom, the United States of America, Canada, Vietnam, and Mexico, and Continental Europe comprises operating companies in the following countries: Belgium, Poland, Germany, Switzerland, France, Spain, and Italy.
Executives
Dr. Jochen Ruetz Managing Director (CFO) and Member of the Administrative Board

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