Operating Margin % is calculated as Operating Income divided by its Revenue. BWE Drilling's Operating Income for the
six
months ended in Dec. 2024 was A$-3.78 Mil. BWE Drilling's Revenue for the
six
months ended in Dec. 2024 was A$39.54 Mil. Therefore, BWE Drilling's Operating Margin % for the quarter that ended in Dec. 2024 was -9.56%.
The historical rank and industry rank for BWE Drilling's Operating Margin % or its related term are showing as below:
ASX:BWE's Operating Margin % is not ranked *
in the Construction industry.
Industry Median: 5.89 * Ranked among companies with meaningful Operating Margin % only.
BWE Drilling's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
BWE Drilling's Operating Income for the
six
months ended in Dec. 2024 was A$-3.78 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was A$-15.48 Mil.
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 Nokias 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.
BWE Drilling Operating Margin % Related Terms
BWE Drilling Operating Margin % Historical Data
* Premium members only.
The historical data trend for BWE Drilling'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.
ASX:BWE vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, BWE Drilling'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.
BWE Drilling Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, BWE Drilling's Operating Margin % distribution charts can be found below:
* The bar in red indicates where BWE Drilling's Operating Margin % falls into.
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.
BWE Drilling's Operating Margin % for the fiscal year that ended in Jun. 2024 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.
BWE Drilling (ASX:BWE) has a Operating Margin % of -9.56% as of Dec. 2024. Operating margin is the ratio of total operating income to net sales. View historical data on BWE Drilling and its competitors.
Is BWE Drilling's Operating Margin % too high?
BWE Drilling's current Operating Margin % is -9.56%. Overall, BWE Drilling has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does BWE Drilling's Operating Margin % compare to PWR and FIX?
BWE Drilling's Operating Margin % of -9.56% can be compared against companies in the Construction industry. The industry median Operating Margin % is 5.89. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % 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 Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on BWE Drilling and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BWE Drilling's current Operating Margin % is -9.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BWE Drilling stock overvalued right now?
BWE Drilling (ASX:BWE) has a current Operating Margin % of -9.56%. The current Operating Margin % is -9.56%. BWE Drilling's overall GF Score™ is 30/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For BWE Drilling (ASX:BWE), the current Operating Margin % is -9.56% as of Dec. 2024. 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.
BWE Drilling Ltd, formerly Dynamic Group Holdings Ltd is a supplier of drilling and blasting services to clients in the mining and construction sectors in Western Australia. It has extensive experience in areas of drilling and blasting, exploration and mine site resource definitions and grade control drilling, and water drilling, including deep artesian bores.
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