PT Berau Coal Energy Tbk (FRA:9BC) 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.
PT Berau Coal Energy Tbk Operating Margin % Related Terms
PT Berau Coal Energy Tbk 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.
FRA:9BC vs METC, HNRG: Operating Margin % Comparison
For the Thermal Coal subindustry, PT Berau Coal Energy Tbk'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.
PT Berau Coal Energy Tbk Operating Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, PT Berau Coal Energy Tbk's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PT Berau Coal Energy Tbk's Operating Margin % falls into.
PT Berau Coal Energy Tbk 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.
PT Berau Coal Energy Tbk's Operating Margin % for the fiscal year that ended in Dec. 2022 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.
PT Berau Coal Energy Tbk (FRA:9BC) has a Operating Margin % of 15.12% as of Dec. 2022. Operating margin is the ratio of total operating income to net sales. View historical data on PT Berau Coal Energy Tbk and its competitors. This is 31% above median its historical median of 11.55.
Is PT Berau Coal Energy Tbk's Operating Margin % too high?
PT Berau Coal Energy Tbk's current Operating Margin % of 15.12% is 31% above median its 10-year median of 11.55. The Other Energy Sources industry median Operating Margin % is 4.57. PT Berau Coal Energy Tbk's value of 15.12% is 230.9% above this industry median.
How does PT Berau Coal Energy Tbk's Operating Margin % compare to METC and HNRG?
PT Berau Coal Energy Tbk's Operating Margin % of 15.12% can be compared against companies in the Other Energy Sources industry. The industry median Operating Margin % is 4.57. PT Berau Coal Energy Tbk's value of 15.12% is 230.9% above this benchmark. While the company's 10-year median is 11.55 vs. the industry median of 4.57, PT Berau Coal Energy Tbk 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 an Other Energy Sources company?
The median Operating Margin % among Other Energy Sources companies is 4.57, based on 130 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. PT Berau Coal Energy Tbk's current Operating Margin % of 15.12% is 230.9% 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 PT Berau Coal Energy Tbk and its competitors. For the Other Energy Sources industry, the median Operating Margin % is 4.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Berau Coal Energy Tbk's current Operating Margin % is 15.12%, which is 31% above median its own 10-year median of 11.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Berau Coal Energy Tbk stock overvalued right now?
PT Berau Coal Energy Tbk (FRA:9BC) has a current Operating Margin % of 15.12%. The current Operating Margin % is 15.12%, which is 31% above median its 10-year median of 11.55 and 230.9% above the Other Energy Sources industry median of 4.57. 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 PT Berau Coal Energy Tbk (FRA:9BC), the current Operating Margin % is 15.12% as of Dec. 2022. 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.
PT Berau Coal Energy Tbk functions as a holding company. It is mainly involved in trading, mining, plantation, construction, real estate, agriculture, printing, industry, transportation, and services. The company, through its subsidiary, engaged in coal mining. It has an interest in three open cut mining operations; Lati, Binungan, and Sambarata. The firm supplies coal to customers in Indonesia, China, Hong Kong, India, Japan, South Korea, Taiwan, the Philippines, and Thailand. Its customers are mainly utility companies and coal trading companies.
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