MetlifecareASX:MEQ 4 Operating Margin % is 22.50% as of Jun. 2020, which is 198% above its 10-year median of 7.54. GuruFocus rates ASX:MEQ with a GF Score™ of 4/100. The stock has 8 warning signs investors should review.
Operating Margin % is calculated as Operating Income divided by its Revenue. Metlifecare's Operating Income for the
six
months ended in Jun. 2020 was A$14.44 Mil. Metlifecare's Revenue for the
six
months ended in Jun. 2020 was A$64.20 Mil. Therefore, Metlifecare's Operating Margin % for the quarter that ended in Jun. 2020 was 22.50%.
The historical rank and industry rank for Metlifecare's Operating Margin % or its related term are showing as below:
ASX:MEQ'
s Operating Margin % Range Over the Past 10 Years
Min: -0.86 Med: 7.54 Max: 11.36
Current: 11.36
ASX:MEQ's Operating Margin % is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 4.845
vs ASX:MEQ: 11.36
Metlifecare's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Metlifecare's Operating Income for the
six
months ended in Jun. 2020 was A$14.44 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 was A$14.22 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.
Metlifecare Operating Margin % Related Terms
Metlifecare Operating Margin % Historical Data
* Premium members only.
The historical data trend for Metlifecare'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:MEQ vs HCA, DVA, UHS: Operating Margin % Comparison
For the Medical Care Facilities subindustry, Metlifecare'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.
Metlifecare Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Metlifecare's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Metlifecare'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.
Metlifecare's Operating Margin % for the fiscal year that ended in Jun. 2020 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.
Metlifecare (ASX:MEQ) has a Operating Margin % of 22.50% as of Jun. 2020. Operating margin is the ratio of total operating income to net sales. View historical data on Metlifecare and its competitors. This is 198% above median its historical median of 7.54.
Is Metlifecare's Operating Margin % too high?
Metlifecare's current Operating Margin % of 22.50% is 198% above median its 10-year median of 7.54. The Healthcare Providers & Services industry median Operating Margin % is 4.85. Metlifecare's value of 22.50% is 364.4% above this industry median. Overall, Metlifecare has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Metlifecare's Operating Margin % compare to HCA and DVA?
Metlifecare's Operating Margin % of 22.50% can be compared against companies in the Healthcare Providers & Services industry. The industry median Operating Margin % is 4.85. Metlifecare's value of 22.50% is 364.4% above this benchmark. While the company's 10-year median is 7.54 vs. the industry median of 4.85, Metlifecare has consistently been above the industry average. 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 Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 4.85, based on 668 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. Metlifecare's current Operating Margin % of 22.50% is 364.4% above the industry median. 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 Metlifecare and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Metlifecare's current Operating Margin % is 22.50%, which is 198% above median its own 10-year median of 7.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Metlifecare stock overvalued right now?
Metlifecare (ASX:MEQ) has a current Operating Margin % of 22.50%. The current Operating Margin % is 22.50%, which is 198% above median its 10-year median of 7.54 and 364.4% above the Healthcare Providers & Services industry median of 4.85. Metlifecare's overall GF Score™ is 4/100 with 8 warning signs to review. 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 Metlifecare (ASX:MEQ), the current Operating Margin % is 22.50% as of Jun. 2020. 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.
Metlifecare Ltd operates retirement communities throughout New Zealand. It generates revenue from membership fees and rest home, hospital and service, and village fees. Metlifecare's membership fees are paid by residents of independent living units and serviced apartments and allow residents to use common facilities. Its largest single customer is the New Zealand government, which pays fees on behalf of residents eligible for government subsidized elderly care. The majority of Metlifecare's retirement villages are located in Auckland.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:MEQ has been successfully added to your 