ESTRF (Estre Ambiental) Operating Income: $-22.2 Mil (TTM As of Jun. 2019)

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What is Estre Ambiental Operating Income?

Estre Ambiental ESTRF -90.00% Operating Income is $-22.2 Mil as of Jun. 2019.

Estre Ambiental's Operating Income for the six months ended in Jun. 2019 was $3.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2019 was $-22.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Estre Ambiental's Operating Income for the six months ended in Jun. 2019 was $3.6 Mil. Estre Ambiental's Revenue for the six months ended in Jun. 2019 was $134.3 Mil. Therefore, Estre Ambiental's Operating Margin % for the quarter that ended in Jun. 2019 was 2.70%.

Estre Ambiental's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Estre Ambiental's annualized ROC % for the quarter that ended in Jun. 2019 was 1.17%. Estre Ambiental's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 was 7.39%.

Estre Ambiental  (OTCPK:ESTRF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Estre Ambiental's annualized ROC % for the quarter that ended in Jun. 2019 is calculated as:

ROC % (Q: Jun. 2019 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2018 ) + Invested Capital (Q: Jun. 2019 ))/ count )
=7.262 * ( 1 - 0% )/( (618.914 + 620.381)/ 2 )
=7.262/619.6475
=1.17 %

where

Invested Capital(Q: Dec. 2018 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=418.382 - 131.599 - ( 4.864 - max(0, 556.356 - 224.225+4.864))
=618.914

Invested Capital(Q: Jun. 2019 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=396.815 - 173.509 - ( 8.818 - max(0, 643.204 - 246.129+8.818))
=620.381

Note: The Operating Income data used here is two times the semi-annual (Jun. 2019) data.

2. Joel Greenblatt's definition of Return on Capital:

Estre Ambiental's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2018  Q: Jun. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=9.856/( ( (131.86 + max(-0.20699999999997, 0)) + (134.865 + max(-42.275, 0)) )/ 2 )
=9.856/( ( 131.86 + 134.865 )/ 2 )
=9.856/133.3625
=7.39 %

where Working Capital is:

Working Capital(Q: Dec. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(129.222 + 2.217 + 20.976) - (131.599 + 3.873 + 17.15)
=-0.20699999999997

Working Capital(Q: Jun. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(147.833 + 0 + 20.23) - (173.509 + 0 + 36.829)
=-42.275

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2019) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Estre Ambiental's Operating Margin % for the quarter that ended in Jun. 2019 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2019 )/Revenue (Q: Jun. 2019 )
=3.631/134.347
=2.70 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, 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 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.

Estre Ambiental Operating Income Related Terms

Estre Ambiental Operating Income Historical Data

* Premium members only.

The historical data trend for Estre Ambiental's Operating Income 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.

Estre Ambiental Operating Income Chart

Estre Ambiental Annual Data
Trend Dec15 Dec16 Dec17 Dec18
Operating Income
0.00 -0.75 42.16 -12.42

Estre Ambiental Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
Operating Income Get a 7-Day Free Trial 11.64 30.51 13.79 -25.81 3.63

Estre Ambiental Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2019 adds up the semi-annually data reported by the company within the most recent 12 months, which was $-22.2 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $-22.2 Mil mean?
Estre Ambiental (ESTRF) has a Operating Income of $-22.2 Mil as of Jun. 2019. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Estre Ambiental and its competitors.
Is Estre Ambiental's Operating Income too high?
Estre Ambiental's current Operating Income is $-22.2 Mil.
How does Estre Ambiental's Operating Income compare to OCLN and HDII?
Estre Ambiental's Operating Income of $-22.2 Mil can be compared against companies in the Waste Management industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Waste Management company?
A good Operating Income depends on the Waste Management industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Estre Ambiental and its competitors. Estre Ambiental's current Operating Income is $-22.2 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Estre Ambiental stock overvalued right now?
Estre Ambiental (ESTRF) has a current Operating Income of $-22.2 Mil. The current Operating Income is $-22.2 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Estre Ambiental (ESTRF), the current Operating Income is $-22.2 Mil as of Jun. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Estre Ambiental Business Description

Address 4509, Avenida Brigadeiro Faria Lima, 8th Floor,Vila Olimpia, Sao Paulo, SP, BRA, 04538-133
Estre Ambiental Inc waste management company in Brazil which operates in the Southeast, South and Northeast regions of Brazil. It operates its own landfills and is engaged in the final treatment of hazardous wastes, temporary storage of waste, collection and burning of landfill biogas, environmental consulting services, recycling, reverse manufacturing of electrical and electronic devices and waste collection, among others activities. The operations are grouped into four business segments Collection and Cleaning Services; Landfills; Oil and Gas; and Value Recovery. It generates a vast majority of its revenue from the collection and cleaning services segment.