Bangkok ExpresswayBKK:BECL-R Operating Margin % is 94.13% as of Sep. 2015, which is 107% above its 10-year median of 45.37. The stock has 2 warning signs investors should review.
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.
Bangkok Expressway Operating Margin % Related Terms
Bangkok Expressway Operating Margin % Historical Data
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The historical data trend for Bangkok Expressway'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.
BKK:BECL-R vs GVA, PRIM: Operating Margin % Comparison
For the Engineering & Construction subindustry, Bangkok Expressway'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.
Bangkok Expressway Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Bangkok Expressway's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Bangkok Expressway'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.
Bangkok Expressway's Operating Margin % for the fiscal year that ended in Dec. 2014 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.
Bangkok Expressway (BKK:BECL-R) has a Operating Margin % of 94.13% as of Sep. 2015. Operating margin is the ratio of total operating income to net sales. View historical data on Bangkok Expressway and its competitors. This is 107% above median its historical median of 45.37. Over the past decade, Bangkok Expressway's Operating Margin % has ranged from 29.29 to 50.66.
Is Bangkok Expressway's Operating Margin % too high?
Bangkok Expressway's current Operating Margin % of 94.13% is 107% above median its 10-year median of 45.37. Over the past 10 years, this metric has ranged from a low of 29.29 to a high of 50.66. The Construction industry median Operating Margin % is 5.89. Bangkok Expressway's value of 94.13% is 1498.1% above this industry median.
How does Bangkok Expressway's Operating Margin % compare to GVA and PRIM?
Bangkok Expressway's Operating Margin % of 94.13% can be compared against companies in the Construction industry. The industry median Operating Margin % is 5.89. Bangkok Expressway's value of 94.13% is 1498.1% above this benchmark. Historically, Bangkok Expressway's own Operating Margin % has ranged from 29.29 to 50.66 over the past decade. While the company's 10-year median is 45.37 vs. the industry median of 5.89, Bangkok Expressway 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 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. Bangkok Expressway's current Operating Margin % of 94.13% is 1498.1% 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 Bangkok Expressway 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. Bangkok Expressway's current Operating Margin % is 94.13%, which is 107% above median its own 10-year median of 45.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bangkok Expressway stock overvalued right now?
Bangkok Expressway (BKK:BECL-R) has a current Operating Margin % of 94.13%. The current Operating Margin % is 94.13%, which is 107% above median its 10-year median of 45.37 and 1498.1% above the Construction industry median of 5.89. 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 Bangkok Expressway (BKK:BECL-R), the current Operating Margin % is 94.13% as of Sep. 2015. 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.
Bangkok Expressway Public Company Limited engages in the design, construction, management, and operation of expressways in Thailand. The Company is engaged in the construction and management of Si Rat Expressway (Second Stage Expressway Project) and other extensions, including related businesses under the Second Stage Expressway agreement with the Expressway Authority of Thailand (EXAT); and the Udon Ratthaya Expressway under the Bang Pa-in-Pak Kret Expressway agreement entered into between EXAT and the Company.
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