CHSCHSCN.PFD -0.60% Operating Margin % is 3.85% as of Feb. 2019, which is 47% above its 10-year median of 2.62. The stock has 1 warning sign investors should review.
Operating Margin % is calculated as Operating Income divided by its Revenue. CHS's Operating Income for the
three
months ended in Feb. 2019 was $249.65 Mil. CHS's Revenue for the
three
months ended in Feb. 2019 was $6,483.54 Mil. Therefore, CHS's Operating Margin % for the quarter that ended in Feb. 2019 was 3.85%.
Good Sign:
CHS Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for CHS's Operating Margin % or its related term are showing as below:
CHSCN.PFD'
s Operating Margin % Range Over the Past 10 Years
Min: 1.99 Med: 2.62 Max: 4.89
Current: 4.51
CHSCN.PFD's Operating Margin % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 5.26
vs CHSCN.PFD: 4.51
CHS's 5-Year Average Operating Margin % Growth Rate was 6.60% per year.
CHS's Operating Income for the
three
months ended in Feb. 2019 was $249.65 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2019 was $877.23 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.
CHS Operating Margin % Related Terms
CHS Operating Margin % Historical Data
* Premium members only.
The historical data trend for CHS'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.
CHSCN.PFD vs RSSFF, NWGFF, TURV: Operating Margin % Comparison
For the Farm Products subindustry, CHS'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.
CHS Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CHS'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.
CHS's Operating Margin % for the fiscal year that ended in Aug. 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.
CHS (CHSCN.PFD) has a Operating Margin % of 3.85% as of Feb. 2019. Operating margin is the ratio of total operating income to net sales. View historical data on CHS and its competitors. This is 47% above median its historical median of 2.62. Over the past decade, CHS's Operating Margin % has ranged from 1.99 to 4.89.
Is CHS's Operating Margin % too high?
CHS's current Operating Margin % of 3.85% is 47% above median its 10-year median of 2.62. Over the past 10 years, this metric has ranged from a low of 1.99 to a high of 4.89. The Consumer Packaged Goods industry median Operating Margin % is 5.26. CHS's value of 3.85% is 26.8% below this industry median.
How does CHS's Operating Margin % compare to RSSFF and NWGFF?
CHS's Operating Margin % of 3.85% can be compared against companies in the Consumer Packaged Goods industry. The industry median Operating Margin % is 5.26. CHS's value of 3.85% is 26.8% below this benchmark. Historically, CHS's own Operating Margin % has ranged from 1.99 to 4.89 over the past decade. While the company's 10-year median is 2.62 vs. the industry median of 5.26, CHS has consistently been below 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 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. CHS's current Operating Margin % of 3.85% is 26.8% below 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 CHS and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CHS's current Operating Margin % is 3.85%, which is 47% above median its own 10-year median of 2.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCN.PFD) has a current Operating Margin % of 3.85%. The current Operating Margin % is 3.85%, which is 47% above median its 10-year median of 2.62 and 26.8% below the Consumer Packaged Goods industry median of 5.26. 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 CHS (CHSCN.PFD), the current Operating Margin % is 3.85% as of Feb. 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.
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).
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