DCEL (Digicel Group) Operating Margin %: 25.33% (As of Mar. 2015)


What is Digicel Group Operating Margin %?

Digicel Group DCEL Operating Margin % is 25.33% as of Mar. 2015.

Operating Margin % is calculated as Operating Income divided by its Revenue. Digicel Group's Operating Income for the six months ended in Mar. 2015 was $707.81 Mil. Digicel Group's Revenue for the six months ended in Mar. 2015 was $2,794.11 Mil. Therefore, Digicel Group's Operating Margin % for the quarter that ended in Mar. 2015 was 25.33%.

The historical rank and industry rank for Digicel Group's Operating Margin % or its related term are showing as below:


DCEL's Operating Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 9.73
* Ranked among companies with meaningful Operating Margin % only.

Digicel Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Digicel Group's Operating Income for the six months ended in Mar. 2015 was $707.81 Mil.

Digicel Group  (NYSE:DCEL) 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.

Digicel Group Operating Margin % Related Terms

Digicel Group Operating Margin % Historical Data

* Premium members only.

The historical data trend for Digicel Group'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.

Digicel Group Operating Margin % Chart

Digicel Group Annual Data
Trend Mar13 Mar14 Mar15
Operating Margin %
27.17 28.78 25.33

Digicel Group Semi-Annual Data
Mar13 Mar14 Mar15
Operating Margin % 27.17 28.78 25.33

DCEL vs DIRV, FULO, TOWTF: Operating Margin % Comparison

For the Telecom Services subindustry, Digicel Group'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.

Digicel Group Operating Margin % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Digicel Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Digicel Group's Operating Margin % falls into.


Digicel Group 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.

Digicel Group's Operating Margin % for the fiscal year that ended in Mar. 2015 is calculated as

Operating Margin %=Operating Income (A: Mar. 2015 ) / Revenue (A: Mar. 2015 )
=707.806 / 2794.11
=25.33 %

Digicel Group's Operating Margin % for the quarter that ended in Mar. 2015 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2015 ) / Revenue (Q: Mar. 2015 )
=707.806 / 2794.11
=25.33 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 25.33% mean?
Digicel Group (DCEL) has a Operating Margin % of 25.33% as of Mar. 2015. Operating margin is the ratio of total operating income to net sales. View historical data on Digicel Group and its competitors.
Is Digicel Group's Operating Margin % too high?
Digicel Group's current Operating Margin % is 25.33%. The Telecommunication Services industry median Operating Margin % is 9.73. Digicel Group's value of 25.33% is 160.3% above this industry median.
How does Digicel Group's Operating Margin % compare to DIRV and FULO?
Digicel Group's Operating Margin % of 25.33% can be compared against companies in the Telecommunication Services industry. The industry median Operating Margin % is 9.73. Digicel Group's value of 25.33% is 160.3% above this benchmark. 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 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. Digicel Group's current Operating Margin % of 25.33% is 160.3% 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 Digicel Group and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digicel Group's current Operating Margin % is 25.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digicel Group stock overvalued right now?
Digicel Group (DCEL) has a current Operating Margin % of 25.33%. The current Operating Margin % is 25.33% and 160.3% above the Telecommunication Services industry median of 9.73. 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 Digicel Group (DCEL), the current Operating Margin % is 25.33% as of Mar. 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.

Digicel Group Business Description

Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.