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Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) Operating Margin % : 8.05% (As of Dec. 2024)


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What is Heavy Engineering Industries and Shipbuilding Co KSC Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Heavy Engineering Industries and Shipbuilding Co KSC's Operating Income for the three months ended in Dec. 2024 was KWD4.7 Mil. Heavy Engineering Industries and Shipbuilding Co KSC's Revenue for the three months ended in Dec. 2024 was KWD58.5 Mil. Therefore, Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin % for the quarter that ended in Dec. 2024 was 8.05%.

Warning Sign:

Heavy Engineering Industries and Shipbuilding Co KSC operating margin has been in a 5-year decline. The average rate of decline per year is -4.1%.

The historical rank and industry rank for Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin % or its related term are showing as below:

KUW:SHIP' s Operating Margin % Range Over the Past 10 Years
Min: 4.85   Med: 6.07   Max: 7.33
Current: 6.39


KUW:SHIP's Operating Margin % is ranked better than
55.9% of 1728 companies
in the Construction industry
Industry Median: 5.445 vs KUW:SHIP: 6.39

Heavy Engineering Industries and Shipbuilding Co KSC's 5-Year Average Operating Margin % Growth Rate was -4.10% per year.

Heavy Engineering Industries and Shipbuilding Co KSC's Operating Income for the three months ended in Dec. 2024 was KWD4.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was KWD10.4 Mil.


Heavy Engineering Industries and Shipbuilding Co KSC Operating Margin % Historical Data

The historical data trend for Heavy Engineering Industries and Shipbuilding Co KSC'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.

Heavy Engineering Industries and Shipbuilding Co KSC Operating Margin % Chart

Heavy Engineering Industries and Shipbuilding Co KSC Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.83 5.74 4.87 5.58 6.39

Heavy Engineering Industries and Shipbuilding Co KSC Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 9.38 5.30 6.17 5.07 8.05

Competitive Comparison of Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin %

For the Engineering & Construction subindustry, Heavy Engineering Industries and Shipbuilding Co KSC'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.


Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin % falls into.


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Heavy Engineering Industries and Shipbuilding Co KSC 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.

Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=10.432 / 163.147
=6.39 %

Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=4.711 / 58.538
=8.05 %

* 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.


Heavy Engineering Industries and Shipbuilding Co KSC  (KUW:SHIP) 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.


Heavy Engineering Industries and Shipbuilding Co KSC Operating Margin % Related Terms

Thank you for viewing the detailed overview of Heavy Engineering Industries and Shipbuilding Co KSC's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Heavy Engineering Industries and Shipbuilding Co KSC Business Description

Traded in Other Exchanges
N/A
Address
Shuwaik Port, Gate No.7, P.O. Box 21998, Safat, Kuwait, KWT, 13080
Heavy Engineering Industries and Shipbuilding Co KSC is a Engineering, Procurement and Construction (EPC) Contracting company based in Kuwait with a diversified range of business in Oil and Gas, Petrochemicals, Power, Pressure Equipment Manufacturing, Shipbuilding & Repair, Dredging & Marine Construction, Civil Construction, Maintenance and other industrial services including Heavy Industry projects. The company offers a wide ranging fields of activities such as Shipyard Operations, Oil & Gas Construction Operations, Industrial Maintenance Operations, Fabrication Services Operations, Trading Operations, Testing & Calibration, Quality Control & Testing, etc.

Heavy Engineering Industries and Shipbuilding Co KSC Headlines