Biovet JSCLTS:0III Operating Margin % is 11.23% as of Dec. 2016, which is 63% above its 10-year median of 6.88. The stock has 1 warning sign investors should review.
Operating Margin % is calculated as Operating Income divided by its Revenue. Biovet JSC's Operating Income for the
three
months ended in Dec. 2016 was лв7.65 Mil. Biovet JSC's Revenue for the
three
months ended in Dec. 2016 was лв68.11 Mil. Therefore, Biovet JSC's Operating Margin % for the quarter that ended in Dec. 2016 was 11.23%.
Good Sign:
Biovet JSC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Biovet JSC's Operating Margin % or its related term are showing as below:
LTS:0III'
s Operating Margin % Range Over the Past 10 Years
Min: 3.59 Med: 6.88 Max: 10.2
Current: 8.68
LTS:0III's Operating Margin % is not ranked
in the Drug Manufacturers industry.
Industry Median: 7.45
vs LTS:0III: 8.68
Biovet JSC's 5-Year Average Operating Margin % Growth Rate was 15.10% per year.
Biovet JSC's Operating Income for the
three
months ended in Dec. 2016 was лв7.65 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2016 was лв20.88 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.
Biovet JSC Operating Margin % Related Terms
Biovet JSC Operating Margin % Historical Data
* Premium members only.
The historical data trend for Biovet JSC'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.
LTS:0III vs ADMP, AGRX, BUDZ: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Biovet JSC'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.
Biovet JSC Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Biovet JSC's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Biovet JSC'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.
Biovet JSC's Operating Margin % for the fiscal year that ended in Dec. 2016 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.
Biovet JSC (LTS:0III) has a Operating Margin % of 11.23% as of Dec. 2016. Operating margin is the ratio of total operating income to net sales. View historical data on Biovet JSC and its competitors. This is 63% above median its historical median of 6.88. Over the past decade, Biovet JSC's Operating Margin % has ranged from 3.59 to 10.20.
Is Biovet JSC's Operating Margin % too high?
Biovet JSC's current Operating Margin % of 11.23% is 63% above median its 10-year median of 6.88. Over the past 10 years, this metric has ranged from a low of 3.59 to a high of 10.20. The Drug Manufacturers industry median Operating Margin % is 7.45. Biovet JSC's value of 11.23% is 50.7% above this industry median.
How does Biovet JSC's Operating Margin % compare to ADMP and AGRX?
Biovet JSC's Operating Margin % of 11.23% can be compared against companies in the Drug Manufacturers industry. The industry median Operating Margin % is 7.45. Biovet JSC's value of 11.23% is 50.7% above this benchmark. Historically, Biovet JSC's own Operating Margin % has ranged from 3.59 to 10.20 over the past decade. While the company's 10-year median is 6.88 vs. the industry median of 7.45, Biovet JSC 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 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. Biovet JSC's current Operating Margin % of 11.23% is 50.7% 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 Biovet JSC 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. Biovet JSC's current Operating Margin % is 11.23%, which is 63% above median its own 10-year median of 6.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Biovet JSC stock overvalued right now?
Biovet JSC (LTS:0III) has a current Operating Margin % of 11.23%. The current Operating Margin % is 11.23%, which is 63% above median its 10-year median of 6.88 and 50.7% above the Drug Manufacturers industry median of 7.45. 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 Biovet JSC (LTS:0III), the current Operating Margin % is 11.23% as of Dec. 2016. 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.
Biovet JSC manufactures & markets medicated and nutritional feed additives, enzymes, bulk active substances & pharmaceuticals for animal productivity & health. It offers intermediates, active ingredients and medicines for human pharmaceutical industry.
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