IntelsatFRA:IJS.PFD 4 Operating Margin % is 13.73% as of Sep. 2021, which is 69% below its 10-year median of 44.85. GuruFocus rates FRA:IJS.PFD with a GF Score™ of 4/100. The stock has 10 warning signs investors should review.
Operating Margin % is calculated as Operating Income divided by its Revenue. Intelsat's Operating Income for the
three
months ended in Sep. 2021 was €61.40 Mil. Intelsat's Revenue for the
three
months ended in Sep. 2021 was €447.18 Mil. Therefore, Intelsat's Operating Margin % for the quarter that ended in Sep. 2021 was 13.73%.
Warning Sign:
Intelsat SA operating margin has been in a 5-year decline. The average rate of decline per year is -10.3%.
The historical rank and industry rank for Intelsat's Operating Margin % or its related term are showing as below:
FRA:IJS.PFD'
s Operating Margin % Range Over the Past 10 Years
Min: 7.94 Med: 44.85 Max: 50.45
Current: 7.94
FRA:IJS.PFD's Operating Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 9.73
vs FRA:IJS.PFD: 7.94
Intelsat's 5-Year Average Operating Margin % Growth Rate was -10.30% per year.
Intelsat's Operating Income for the
three
months ended in Sep. 2021 was €61.40 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was €134.06 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.
Intelsat Operating Margin % Related Terms
Intelsat Operating Margin % Historical Data
* Premium members only.
The historical data trend for Intelsat'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.
For the Telecom Services subindustry, Intelsat'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.
Intelsat Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Intelsat's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Intelsat'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.
Intelsat's Operating Margin % for the fiscal year that ended in Dec. 2020 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.
Intelsat (FRA:IJS.PFD) has a Operating Margin % of 13.73% as of Sep. 2021. Operating margin is the ratio of total operating income to net sales. View historical data on Intelsat and its competitors. This is 69% below median its historical median of 44.85. Over the past decade, Intelsat's Operating Margin % has ranged from 7.94 to 50.45.
Is Intelsat's Operating Margin % too high?
Intelsat's current Operating Margin % of 13.73% is 69% below median its 10-year median of 44.85. Over the past 10 years, this metric has ranged from a low of 7.94 to a high of 50.45. The Telecommunication Services industry median Operating Margin % is 9.73. Intelsat's value of 13.73% is 41.1% above this industry median. Overall, Intelsat has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Intelsat's Operating Margin % compare to competitors?
Intelsat's Operating Margin % of 13.73% can be compared against companies in the Telecommunication Services industry. The industry median Operating Margin % is 9.73. Intelsat's value of 13.73% is 41.1% above this benchmark. Historically, Intelsat's own Operating Margin % has ranged from 7.94 to 50.45 over the past decade. While the company's 10-year median is 44.85 vs. the industry median of 9.73, Intelsat 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 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. Intelsat's current Operating Margin % of 13.73% is 41.1% 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 Intelsat 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. Intelsat's current Operating Margin % is 13.73%, which is 69% below median its own 10-year median of 44.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Intelsat stock overvalued right now?
Intelsat (FRA:IJS.PFD) has a current Operating Margin % of 13.73%. The current Operating Margin % is 13.73%, which is 69% below median its 10-year median of 44.85 and 41.1% above the Telecommunication Services industry median of 9.73. Intelsat's overall GF Score™ is 4/100 with 10 warning signs 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 Intelsat (FRA:IJS.PFD), the current Operating Margin % is 13.73% as of Sep. 2021. 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.
Intelsat SA is a Luxembourg-based company which operates satellite services business. It is engaged in providing diversified communications services to the media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, and a multinational corporation. In addition, it provides commercial satellite communication services to the United States government and other select military organizations and their contractors. Intelsat operates through a single segment being Providing satellite services. The company earns the majority of its revenue from North America.
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