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Semiconductor Manufacturing International (HKSE:00981) Operating Margin % : 7.85% (As of Sep. 2024)


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What is Semiconductor Manufacturing International Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Semiconductor Manufacturing International's Operating Income for the three months ended in Sep. 2024 was HK$1,328 Mil. Semiconductor Manufacturing International's Revenue for the three months ended in Sep. 2024 was HK$16,916 Mil. Therefore, Semiconductor Manufacturing International's Operating Margin % for the quarter that ended in Sep. 2024 was 7.85%.

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

HKSE:00981' s Operating Margin % Range Over the Past 10 Years
Min: -1.07   Med: 6.93   Max: 24.6
Current: 4.86


HKSE:00981's Operating Margin % is ranked worse than
50.5% of 996 companies
in the Semiconductors industry
Industry Median: 4.905 vs HKSE:00981: 4.86

Semiconductor Manufacturing International's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Semiconductor Manufacturing International's Operating Income for the three months ended in Sep. 2024 was HK$1,328 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was HK$2,848 Mil.


Semiconductor Manufacturing International Operating Margin % Historical Data

The historical data trend for Semiconductor Manufacturing International'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.

* Premium members only.

Semiconductor Manufacturing International Operating Margin % Chart

Semiconductor Manufacturing International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.07 7.94 20.43 24.60 5.63

Semiconductor Manufacturing International Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.36 6.26 0.20 4.53 7.85

Competitive Comparison of Semiconductor Manufacturing International's Operating Margin %

For the Semiconductors subindustry, Semiconductor Manufacturing International'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.


Semiconductor Manufacturing International's Operating Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Semiconductor Manufacturing International's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Semiconductor Manufacturing International's Operating Margin % falls into.



Semiconductor Manufacturing International 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.

Semiconductor Manufacturing International's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2777.43 / 49370.119
=5.63 %

Semiconductor Manufacturing International's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1328.42 / 16915.726
=7.85 %

* 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.


Semiconductor Manufacturing International  (HKSE:00981) 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.


Semiconductor Manufacturing International Operating Margin % Related Terms

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Semiconductor Manufacturing International Business Description

Traded in Other Exchanges
Address
No. 18 Zhangjiang Road, Pudong New Area, Shanghai, CHN, 201203
Founded in 2000, Semiconductor Manufacturing International Corp. is the largest Chinese foundry and the fifth-largest globally after TSMC, Samsung Electronics, GlobalFoundries, and United Microelectronics Corp. The company's headquarters and foundry are in Shanghai, with additional foundries in Beijing, Tianjin, and Shenzhen and offices in the United States, Europe, Japan, Taiwan, and Hong Kong. Its products are used in artificial intelligence, data centers, automotive, consumer electronics, memory, and "Internet of Things" products. SMIC employs over 20,200 people.
Executives
Zhong Guo Xin Xi Tong Xin Ke Ji Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Guo Jia Ji Cheng Dian Lu Chan Ye Tou Zi Ji Jin Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Xun Xin Shang Hai Tou Zi You Xian Gong Si 2201 Interest of corporation controlled by you
Xin Xin Xiang Gang Tou Zi You Xian Gong Si 2101 Beneficial owner
Da Tang Kong Gu Xiang Gang Tou Zi You Xian Gong Si
Da Tang Dian Xin Ke Ji Chan Ye Kong Gu You Xian Gong Si
Dian Xin Ke Xue Ji Shu Yan Jiu You Xian Gong Si

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