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Locaweb Servicos de Internet (BSP:LWSA3) Operating Margin % : 9.47% (As of Mar. 2025)


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What is Locaweb Servicos de Internet Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Locaweb Servicos de Internet's Operating Income for the three months ended in Mar. 2025 was R$33 Mil. Locaweb Servicos de Internet's Revenue for the three months ended in Mar. 2025 was R$349 Mil. Therefore, Locaweb Servicos de Internet's Operating Margin % for the quarter that ended in Mar. 2025 was 9.47%.

Warning Sign:

Locaweb Servicos de Internet SA operating margin has been in a 5-year decline. The average rate of decline per year is -5.3%.

The historical rank and industry rank for Locaweb Servicos de Internet's Operating Margin % or its related term are showing as below:

BSP:LWSA3' s Operating Margin % Range Over the Past 10 Years
Min: 2.27   Med: 8.91   Max: 13.12
Current: 9.22


BSP:LWSA3's Operating Margin % is ranked better than
68.32% of 2765 companies
in the Software industry
Industry Median: 3.81 vs BSP:LWSA3: 9.22

Locaweb Servicos de Internet's 5-Year Average Operating Margin % Growth Rate was -5.30% per year.

Locaweb Servicos de Internet's Operating Income for the three months ended in Mar. 2025 was R$33 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 was R$129 Mil.


Locaweb Servicos de Internet Operating Margin % Historical Data

The historical data trend for Locaweb Servicos de Internet'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.

* Premium members only.

Locaweb Servicos de Internet Operating Margin % Chart

Locaweb Servicos de Internet Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.96 2.27 4.30 7.35 8.91

Locaweb Servicos de Internet Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.62 8.29 10.28 8.84 9.47

Competitive Comparison of Locaweb Servicos de Internet's Operating Margin %

For the Software - Infrastructure subindustry, Locaweb Servicos de Internet'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.


Locaweb Servicos de Internet's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Locaweb Servicos de Internet's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Locaweb Servicos de Internet's Operating Margin % falls into.


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Locaweb Servicos de Internet 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.

Locaweb Servicos de Internet's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=122.137 / 1370.032
=8.91 %

Locaweb Servicos de Internet's Operating Margin % for the quarter that ended in Mar. 2025 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=33.023 / 348.89
=9.47 %

* 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.


Locaweb Servicos de Internet  (BSP:LWSA3) 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 Nokia’s 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.


Locaweb Servicos de Internet Operating Margin % Related Terms

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Locaweb Servicos de Internet Business Description

Traded in Other Exchanges
N/A
Address
Rua Itapaiuna, 2.434, Vila Andrade, Sao Paulo, SP, BRA, 05707-001
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services.

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