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Lighthouse Properties (JSE:LTE) Operating Margin % : 45.79% (As of Dec. 2023)


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What is Lighthouse Properties Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Lighthouse Properties's Operating Income for the six months ended in Dec. 2023 was R420 Mil. Lighthouse Properties's Revenue for the six months ended in Dec. 2023 was R917 Mil. Therefore, Lighthouse Properties's Operating Margin % for the quarter that ended in Dec. 2023 was 45.79%.

Warning Sign:

Lighthouse Properties PLC operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.

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

JSE:LTE' s Operating Margin % Range Over the Past 10 Years
Min: 29.7   Med: 50.81   Max: 67.97
Current: 45.52


JSE:LTE's Operating Margin % is ranked better than
82.15% of 1765 companies
in the Real Estate industry
Industry Median: 13.07 vs JSE:LTE: 45.52

Lighthouse Properties's 5-Year Average Operating Margin % Growth Rate was -4.50% per year.

Lighthouse Properties's Operating Income for the six months ended in Dec. 2023 was R420 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was R805 Mil.


Lighthouse Properties Operating Margin % Historical Data

The historical data trend for Lighthouse Properties'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.

Lighthouse Properties Operating Margin % Chart

Lighthouse Properties Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial 67.97 63.71 54.63 50.55 45.52

Lighthouse Properties Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 55.15 46.55 53.92 45.24 45.79

Competitive Comparison of Lighthouse Properties's Operating Margin %

For the Real Estate Services subindustry, Lighthouse Properties'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.


Lighthouse Properties's Operating Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Lighthouse Properties's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Lighthouse Properties's Operating Margin % falls into.



Lighthouse Properties 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.

Lighthouse Properties'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 )
=805.457 / 1769.344
=45.52 %

Lighthouse Properties's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=419.837 / 916.949
=45.79 %

* 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.


Lighthouse Properties  (JSE:LTE) 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.


Lighthouse Properties Operating Margin % Related Terms

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Lighthouse Properties (JSE:LTE) Business Description

Traded in Other Exchanges
Address
IL-Piazzetta, Tower Road, 4th Floor, Office 41, Block A, Sliema, MLT, SLM 1605
Lighthouse Properties PLC is engaged in investing in direct property and infrastructure assets as well as in listed real estate and infrastructure securities. The firm operates in three segments: Listed infrastructure, Listed real estate, and Direct property out of which the Direct property segment accounts for the majority of revenue.

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