ICP (IC Power) Operating Margin %: 15.10% (As of Sep. 2016)


What is IC Power Operating Margin %?

IC Power ICP Operating Margin % is 15.10% as of Sep. 2016.

Operating Margin % is calculated as Operating Income divided by its Revenue. IC Power's Operating Income for the three months ended in Sep. 2016 was $75.80 Mil. IC Power's Revenue for the three months ended in Sep. 2016 was $502.08 Mil. Therefore, IC Power's Operating Margin % for the quarter that ended in Sep. 2016 was 15.10%.

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


ICP's Operating Margin % is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 13.27
* Ranked among companies with meaningful Operating Margin % only.

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

IC Power's Operating Income for the three months ended in Sep. 2016 was $75.80 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2016 was $227.61 Mil.


IC Power  (NYSE:ICP) 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.


IC Power Operating Margin % Related Terms


IC Power Operating Margin % Historical Data

* Premium members only.

The historical data trend for IC Power'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.

IC Power Operating Margin % Chart

IC Power Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Operating Margin %
17.19 19.65 22.45 15.73

IC Power Quarterly Data
Dec12 Dec13 Mar14 Jun14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.42 13.87 15.14 10.17 15.10

ICP vs CETY, QPWR, PSPW: Operating Margin % Comparison

For the Utilities - Independent Power Producers subindustry, IC Power'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.


IC Power Operating Margin % vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, IC Power's Operating Margin % distribution charts can be found below:

* The bar in red indicates where IC Power's Operating Margin % falls into.



IC Power 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.

IC Power's Operating Margin % for the fiscal year that ended in Dec. 2015 is calculated as

Operating Margin %=Operating Income (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=202.66 / 1288.739
=15.73 %

IC Power's Operating Margin % for the quarter that ended in Sep. 2016 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=75.799 / 502.08
=15.10 %

* 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 15.10% mean?
IC Power (ICP) has a Operating Margin % of 15.10% as of Sep. 2016. Operating margin is the ratio of total operating income to net sales. View historical data on IC Power and its competitors.
Is IC Power's Operating Margin % too high?
IC Power's current Operating Margin % is 15.10%. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. IC Power's value of 15.10% is 13.8% above this industry median.
How does IC Power's Operating Margin % compare to CETY and QPWR?
IC Power's Operating Margin % of 15.10% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Operating Margin % is 13.27. IC Power's value of 15.10% is 13.8% 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 an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 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. IC Power's current Operating Margin % of 15.10% is 13.8% 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 IC Power and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IC Power's current Operating Margin % is 15.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IC Power stock overvalued right now?
IC Power (ICP) has a current Operating Margin % of 15.10%. The current Operating Margin % is 15.10% and 13.8% above the Utilities - Independent Power Producers industry median of 13.27. 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 IC Power (ICP), the current Operating Margin % is 15.10% as of Sep. 2016. 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.

IC Power Business Description

IC Power Pte Ltd is a holding company incorporated under the laws of Singapore in May 2015. The Company through its subsidiaries owns, develops and operates power facilities located in power generation markets in Latin America, the Caribbean and Israel, utilizing a range of fuels, including natural gas, hydroelectric, HFO, diesel and wind. The Company has installed capacity of approximately 2,642 MW. The Company operates in geographical areas including Peru; Israel; Central America including Nicaragua, Guatemala, El Salvador & Panama; and other including Bolivia, Chile, Jamaica, Colombia & Dominican Republic. The Company owns, operates and develops power plants to generate and sell electricity to distribution companies and unregulated consumers under long-term PPAs and to the spot market. The Company Peru segment includes Kallpa I, Kallpa II, Kallpa III, Kallpa IV and Las Flores turbines. The Israel segment includes OPC plant. The Central America segment includes Corinto, Tipitapa Power, Amayo I, and Amayo II in Nicaragua; Puerto Quetzal plant in Guatemala; Nejapa plant in El Salvador, and Kanan plant in Panama. The Other segment includes Zongo Valley plants including Zongo, Tiquimani, Botijlaca, Cutichucho, Santa Rosa, Sainani, Chururaqui, Harca, Cahua, & Huaji; and Miguillas Valley plants including Miguillas, Angostura, Choquetanga, Carabuco, and El Alto-Kenko all in Bolivia; Central Cardones plant in Chile; Colmito plant in Colmito; CEPP I & CEPP II in Dominican Republic; JPPC plant in Jamaica; La Hocha, Purificación, and Entrerios plants in Colombia; Pedregal in Panama. The Company offers services to governments, local distribution companies, and/or non-regulated consumers, depending upon the operating company and the particular country of operation. Its customers include Edelnor S.A.A., Luz del Sur S.A.A., Hidrandina S.A., Edecañete S.A., Electro Sur Este S.A.A., Sociedad Eléctrica del Sur Oeste, S.A., Distribuidora de Electricidad del Norte S.A., Distribuidora de Electricidad del Sur S.A., Southern Perú Copper Corporation, Empresa de Distribución Eléctrica Chiriqui, S.A., Peruvian Investment Promotion Agency, Empresa de Distribución Eléctrica Metro Oeste S.A., and others. The Company's competitors include IEC, Dorad Energy Ltd., and other IPPs. The Company's business is subject to significant and diverse government regulation.