CelgeneBUE:CELG 10 Operating Margin % is 50.80% as of Sep. 2019, which is 72% above its 10-year median of 29.55. GuruFocus rates BUE:CELG with a GF Score™ of 10/100. The stock has 1 warning sign investors should review.
Operating Margin % is calculated as Operating Income divided by its Revenue. Celgene's Operating Income for the
three
months ended in Sep. 2019 was ARS128,406.09 Mil. Celgene's Revenue for the
three
months ended in Sep. 2019 was ARS252,785.52 Mil. Therefore, Celgene's Operating Margin % for the quarter that ended in Sep. 2019 was 50.80%.
The historical rank and industry rank for Celgene's Operating Margin % or its related term are showing as below:
BUE:CELG'
s Operating Margin % Range Over the Past 10 Years
Min: 25.82 Med: 29.55 Max: 34.78
Current: 47.6
BUE:CELG's Operating Margin % is not ranked
in the Drug Manufacturers industry.
Industry Median: 7.45
vs BUE:CELG: 47.60
Celgene's 5-Year Average Operating Margin % Growth Rate was -0.30% per year.
Celgene's Operating Income for the
three
months ended in Sep. 2019 was ARS128,406.09 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2019 was ARS364,750.51 Mil.
Celgene (BUE:CELG) 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.
Celgene Operating Margin % Related Terms
Celgene Operating Margin % Historical Data
* Premium members only.
The historical data trend for Celgene'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.
BUE:CELG vs GILD, BIIB, ACT: Operating Margin % Comparison
For the Drug Manufacturers - General subindustry, Celgene'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.
Celgene Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Celgene's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Celgene'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.
Celgene's Operating Margin % for the fiscal year that ended in Dec. 2018 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.
Celgene (BUE:CELG) has a Operating Margin % of 50.80% as of Sep. 2019. Operating margin is the ratio of total operating income to net sales. View historical data on Celgene and its competitors. This is 72% above median its historical median of 29.55. Over the past decade, Celgene's Operating Margin % has ranged from 25.82 to 34.78.
Is Celgene's Operating Margin % too high?
Celgene's current Operating Margin % of 50.80% is 72% above median its 10-year median of 29.55. Over the past 10 years, this metric has ranged from a low of 25.82 to a high of 34.78. The Drug Manufacturers industry median Operating Margin % is 7.45. Celgene's value of 50.80% is 581.9% above this industry median. Overall, Celgene has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Celgene's Operating Margin % compare to GILD and BIIB?
Celgene's Operating Margin % of 50.80% can be compared against companies in the Drug Manufacturers industry. The industry median Operating Margin % is 7.45. Celgene's value of 50.80% is 581.9% above this benchmark. Historically, Celgene's own Operating Margin % has ranged from 25.82 to 34.78 over the past decade. While the company's 10-year median is 29.55 vs. the industry median of 7.45, Celgene 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Celgene's current Operating Margin % of 50.80% is 581.9% 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 Celgene and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Celgene's current Operating Margin % is 50.80%, which is 72% above median its own 10-year median of 29.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Celgene stock overvalued right now?
Celgene (BUE:CELG) has a current Operating Margin % of 50.80%. The current Operating Margin % is 50.80%, which is 72% above median its 10-year median of 29.55 and 581.9% above the Drug Manufacturers industry median of 7.45. Celgene's overall GF Score™ is 10/100 with 1 warning sign 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 Celgene (BUE:CELG), the current Operating Margin % is 50.80% as of Sep. 2019. 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.
Celgene is a biopharmaceutical firm that discovers, develops, and markets therapeutics for the treatment of cancer and immunological diseases. Celgene markets Thalomid and Pomalyst to treat multiple myeloma and Revlimid, a less toxic thalidomide derivative, to treat myelodysplastic syndromes, multiple myeloma, and mantle cell lymphoma. Acquisitions have brought MDS drug Vidaza, T-cell lymphoma drug Istodax, and cancer drug Abraxane. The firm's first immunology drug, Otezla, was approved in the U.S. in 2014. Pending acquisitions of Juno and Impact bring additional drugs for Celgene's blood cancer pipeline.
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