Orissa Sponge Iron & Steel Ltd has recorded a loss in operating income at least once over the past 3 years.
Orissa Sponge Iron & Steel (BOM:504864) 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 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.
Orissa Sponge Iron & Steel Operating Margin % Related Terms
Orissa Sponge Iron & Steel Operating Margin % Historical Data
* 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.
Orissa Sponge Iron & Steel Operating Margin % Chart
For the Steel subindustry, Orissa Sponge Iron & Steel'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.
Orissa Sponge Iron & Steel Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Orissa Sponge Iron & Steel's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Orissa Sponge Iron & Steel's Operating Margin % falls into.
Orissa Sponge Iron & Steel 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.
Orissa Sponge Iron & Steel's Operating Margin % for the fiscal year that ended in Mar. 2025 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.
Orissa Sponge Iron & Steel (BOM:504864) has a Operating Margin % of 4.32% as of Mar. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Orissa Sponge Iron & Steel and its competitors. This is near median its historical median of 4.32.
Is Orissa Sponge Iron & Steel's Operating Margin % too high?
Orissa Sponge Iron & Steel's current Operating Margin % of 4.32% is near median its 10-year median of 4.32. The Steel industry median Operating Margin % is 2.99. Orissa Sponge Iron & Steel's value of 4.32% is 44.5% above this industry median.
How does Orissa Sponge Iron & Steel's Operating Margin % compare to NUE?
Orissa Sponge Iron & Steel's Operating Margin % of 4.32% can be compared against companies in the Steel industry. The industry median Operating Margin % is 2.99. Orissa Sponge Iron & Steel's value of 4.32% is 44.5% above this benchmark. While the company's 10-year median is 4.32 vs. the industry median of 2.99, Orissa Sponge Iron & Steel 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 612 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. Orissa Sponge Iron & Steel's current Operating Margin % of 4.32% is 44.5% 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 Orissa Sponge Iron & Steel and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orissa Sponge Iron & Steel's current Operating Margin % is 4.32%, which is near median its own 10-year median of 4.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orissa Sponge Iron & Steel stock overvalued right now?
Orissa Sponge Iron & Steel (BOM:504864) has a current Operating Margin % of 4.32%. The current Operating Margin % is 4.32%, which is near median its 10-year median of 4.32 and 44.5% above the Steel industry median of 2.99. 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 Orissa Sponge Iron & Steel (BOM:504864), the current Operating Margin % is 4.32% as of Mar. 2025. 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.
Orissa Sponge Iron & Steel Ltd is engaged in manufacturing and selling iron and steel. It mainly operates coal-based sponge iron plants, waste energy recovery-based power plants, and a billet-making plant. The Company's business activities falls within a single primary business segment which is Iron & Steel. The firm generates revenues through the sale of surplus power, and also involves in providing engineering and technical services. It operates a coal-based sponge iron plant, waste energy recovery-based power plants, and a billet-making plant.
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