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Hochtief AG (LTS:0EPW) Operating Margin % : 3.89% (As of Sep. 2024)


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What is Hochtief AG Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Hochtief AG's Operating Income for the three months ended in Sep. 2024 was €347 Mil. Hochtief AG's Revenue for the three months ended in Sep. 2024 was €8,925 Mil. Therefore, Hochtief AG's Operating Margin % for the quarter that ended in Sep. 2024 was 3.89%.

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

LTS:0EPW' s Operating Margin % Range Over the Past 10 Years
Min: -2.73   Med: 2.16   Max: 3.46
Current: 3.12


LTS:0EPW's Operating Margin % is ranked worse than
63.01% of 1706 companies
in the Construction industry
Industry Median: 5.205 vs LTS:0EPW: 3.12

Hochtief AG's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Hochtief AG's Operating Income for the three months ended in Sep. 2024 was €347 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was €965 Mil.

Warning Sign:

Hochtief AG has recorded a loss in operating income at least once over the past 3 years.


Hochtief AG Operating Margin % Historical Data

The historical data trend for Hochtief AG'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.

Hochtief AG Operating Margin % Chart

Hochtief AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.46 -2.73 1.76 0.77 2.02

Hochtief AG Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.98 1.90 2.19 4.16 3.89

Competitive Comparison of Hochtief AG's Operating Margin %

For the Engineering & Construction subindustry, Hochtief AG'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.


Hochtief AG's Operating Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Hochtief AG's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hochtief AG's Operating Margin % falls into.



Hochtief AG 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.

Hochtief AG'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 )
=559.759 / 27756.046
=2.02 %

Hochtief AG's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=347.423 / 8925.093
=3.89 %

* 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.


Hochtief AG  (LTS:0EPW) 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.


Hochtief AG Operating Margin % Related Terms

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Hochtief AG Business Description

Traded in Other Exchanges
Address
Alfredstrasse 236, Essen, NW, DEU, 45133
Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where the company's assets are located.

Hochtief AG Headlines

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