Cineworld Group PLC had lost money in 67% of the time over the past 3quarters.
Cineworld Group (LSE:CINF) 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 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.
Cineworld Group Operating Margin % Related Terms
Cineworld Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cineworld Group'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.
LSE:CINF vs NFLX, DIS, WBD: Operating Margin % Comparison
For the Entertainment subindustry, Cineworld Group'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.
Cineworld Group Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cineworld Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cineworld Group'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.
Cineworld Group's Operating Margin % for the fiscal year that ended in Dec. 2021 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.
Cineworld Group (LSE:CINF) has a Operating Margin % of 8.16% as of Jun. 2022. Operating margin is the ratio of total operating income to net sales. View historical data on Cineworld Group and its competitors. This is 37% below median its historical median of 13.00.
Is Cineworld Group's Operating Margin % too high?
Cineworld Group's current Operating Margin % of 8.16% is 37% below median its 10-year median of 13.00. The Media - Diversified industry median Operating Margin % is 2.51. Cineworld Group's value of 8.16% is 225.1% above this industry median. Overall, Cineworld Group has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Cineworld Group's Operating Margin % compare to NFLX and DIS?
Cineworld Group's Operating Margin % of 8.16% can be compared against companies in the Media - Diversified industry. The industry median Operating Margin % is 2.51. Cineworld Group's value of 8.16% is 225.1% above this benchmark. While the company's 10-year median is 13.00 vs. the industry median of 2.51, Cineworld Group has consistently been above the industry average. 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 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. Cineworld Group's current Operating Margin % of 8.16% is 225.1% 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 Cineworld Group and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cineworld Group's current Operating Margin % is 8.16%, which is 37% below median its own 10-year median of 13.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cineworld Group stock overvalued right now?
Cineworld Group (LSE:CINF) has a current Operating Margin % of 8.16%. The current Operating Margin % is 8.16%, which is 37% below median its 10-year median of 13.00 and 225.1% above the Media - Diversified industry median of 2.51. Cineworld Group's overall GF Score™ is 4/100 with 6 warning signs to review. 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 Cineworld Group (LSE:CINF), the current Operating Margin % is 8.16% as of Jun. 2022. 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.
Cineworld Group PLC is a diversified media company, which operates chains of movie theaters. Its business segments are the U.S., U.K., & Ireland and the rest of the world (ROW). Within each segment, it operates theaters through different brands. In the U.S., Cineworld owns cinema brands Regal, United Artists, and Edwards theaters. They operate out of Cineworld and Picturehouse in the U.K. and Ireland. Cineworld also owns Cinema City in Central and Eastern Europe and Yes Planet and Rav-Chen in Israel for its ROW segment. The company generates revenue through ticket sales and food, beverage, and merchandise sales. It also earns additional revenue through retail and screen advertising and property market and development. The company generates most of its revenue in the U.S.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:CINF has been successfully added to your 