Inter RAO UES PJSC (LSE:IRAA) 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.
Inter RAO UES PJSC Operating Margin % Related Terms
Inter RAO UES PJSC Operating Margin % Historical Data
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The historical data trend for Inter RAO UES PJSC'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:IRAA vs NEE, SO, DUK: Operating Margin % Comparison
For the Utilities - Regulated Electric subindustry, Inter RAO UES PJSC'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.
Inter RAO UES PJSC Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Inter RAO UES PJSC's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Inter RAO UES PJSC'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.
Inter RAO UES PJSC'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.
Inter RAO UES PJSC (LSE:IRAA) has a Operating Margin % of 10.25% as of Dec. 2023. Operating margin is the ratio of total operating income to net sales. View historical data on Inter RAO UES PJSC and its competitors. This is 33% above median its historical median of 7.68. Over the past decade, Inter RAO UES PJSC's Operating Margin % has ranged from 0.92 to 10.28.
Is Inter RAO UES PJSC's Operating Margin % too high?
Inter RAO UES PJSC's current Operating Margin % of 10.25% is 33% above median its 10-year median of 7.68. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 10.28. The Utilities - Regulated industry median Operating Margin % is 14.97. Inter RAO UES PJSC's value of 10.25% is 31.5% below this industry median. Overall, Inter RAO UES PJSC has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Inter RAO UES PJSC's Operating Margin % compare to NEE and SO?
Inter RAO UES PJSC's Operating Margin % of 10.25% can be compared against companies in the Utilities - Regulated industry. The industry median Operating Margin % is 14.97. Inter RAO UES PJSC's value of 10.25% is 31.5% below this benchmark. Historically, Inter RAO UES PJSC's own Operating Margin % has ranged from 0.92 to 10.28 over the past decade. While the company's 10-year median is 7.68 vs. the industry median of 14.97, Inter RAO UES PJSC has consistently been below 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Inter RAO UES PJSC's current Operating Margin % of 10.25% is 31.5% below 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 Inter RAO UES PJSC and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inter RAO UES PJSC's current Operating Margin % is 10.25%, which is 33% above median its own 10-year median of 7.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inter RAO UES PJSC stock overvalued right now?
Inter RAO UES PJSC (LSE:IRAA) has a current Operating Margin % of 10.25%. The current Operating Margin % is 10.25%, which is 33% above median its 10-year median of 7.68 and 31.5% below the Utilities - Regulated industry median of 14.97. Inter RAO UES PJSC's overall GF Score™ is 17/100 with 1 warning sign 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 Inter RAO UES PJSC (LSE:IRAA), the current Operating Margin % is 10.25% as of Dec. 2023. 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.
Inter RAO UES PJSC is a Russian energy holding company of which the Russian Federation owns a majority interest. The principal activity of the company is the ownership of interests in subsidiaries operating in the energy industry throughout Russia and much of Eastern Europe. Through its subsidiaries, Inter RAO UES is involved in the production, supply, distribution, sale, import, and export of electricity and thermal energy. The company segments itself into Supply, Electric Power Generation in the Russian Federation, Thermal Power Generation in the Russian Federation, Trading, Foreign Assets, and Engineering business units. The Supply division encompasses most of the company's income.
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