Operating Margin % is calculated as Operating Income divided by its Revenue. Lowell Farms's Operating Income for the
three
months ended in Sep. 2024 was $-2.16 Mil. Lowell Farms's Revenue for the
three
months ended in Sep. 2024 was $3.24 Mil. Therefore, Lowell Farms's Operating Margin % for the quarter that ended in Sep. 2024 was -66.49%.
The historical rank and industry rank for Lowell Farms's Operating Margin % or its related term are showing as below:
LOWLF's Operating Margin % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 7.45 * Ranked among companies with meaningful Operating Margin % only.
Lowell Farms's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Lowell Farms's Operating Income for the
three
months ended in Sep. 2024 was $-2.16 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $-17.18 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.
Lowell Farms Operating Margin % Related Terms
Lowell Farms Operating Margin % Historical Data
* Premium members only.
The historical data trend for Lowell Farms'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.
LOWLF vs GCAN, ABTI, SKYI: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Lowell Farms'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.
Lowell Farms Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Lowell Farms's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lowell Farms'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.
Lowell Farms's Operating Margin % for the fiscal year that ended in Dec. 2023 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.
Lowell Farms (LOWLF) has a Operating Margin % of -66.49% as of Sep. 2024. Operating margin is the ratio of total operating income to net sales. View historical data on Lowell Farms and its competitors.
Is Lowell Farms' Operating Margin % too high?
Lowell Farms' current Operating Margin % is -66.49%. Overall, Lowell Farms has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Lowell Farms' Operating Margin % compare to GCAN and ABTI?
Lowell Farms' Operating Margin % of -66.49% can be compared against companies in the Drug Manufacturers industry. The industry median Operating Margin % is 7.45. 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. 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 Lowell Farms and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lowell Farms's current Operating Margin % is -66.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lowell Farms stock overvalued right now?
Lowell Farms (LOWLF) has a current Operating Margin % of -66.49%. The current Operating Margin % is -66.49%. Lowell Farms' overall GF Score™ is 10/100. 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 Lowell Farms (LOWLF), the current Operating Margin % is -66.49% as of Sep. 2024. 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.
Lowell Farms Inc is a California-based vertically-integrated cannabis company with production capabilities supporting every step of the supply chain, including cultivation, extraction, manufacturing, brand sales, marketing, and distribution. The Company's operations are comprised of a single reporting operating segment. Its Brands include Lowell Herb Co. and Lowell Smokes, House Weed, Kaizen, Moon, Original Pot Company, Cypress Cannabis, Humble Flower, and Flavor Extracts. The company generates revenues from sales of extracts, distillates, branded and packaged cannabis flower, prerolls, concentrates, and edible products to retail licensed dispensaries and bulk flower, biomass, and concentrates to licensed manufacturers and distributors in the state of California.
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