InverfiatcLTS:0J7P Operating Margin % is 7.75% as of Jun. 2016, which is 310% above its 10-year median of 1.89.
Operating Margin % is calculated as Operating Income divided by its Revenue. Inverfiatc's Operating Income for the
six
months ended in Jun. 2016 was €0.38 Mil. Inverfiatc's Revenue for the
six
months ended in Jun. 2016 was €4.86 Mil. Therefore, Inverfiatc's Operating Margin % for the quarter that ended in Jun. 2016 was 7.75%.
The historical rank and industry rank for Inverfiatc's Operating Margin % or its related term are showing as below:
LTS:0J7P'
s Operating Margin % Range Over the Past 10 Years
Min: -17.73 Med: 1.89 Max: 6.92
Current: 6.92
LTS:0J7P's Operating Margin % is not ranked
in the Homebuilding & Construction industry.
Industry Median: 7.76
vs LTS:0J7P: 6.92
Inverfiatc's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Inverfiatc's Operating Income for the
six
months ended in Jun. 2016 was €0.38 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2016 was €0.65 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.
Inverfiatc Operating Margin % Related Terms
Inverfiatc Operating Margin % Historical Data
* Premium members only.
The historical data trend for Inverfiatc'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:0J7P vs HOV, NOBH: Operating Margin % Comparison
For the Residential Construction subindustry, Inverfiatc'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.
Inverfiatc Operating Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Inverfiatc's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Inverfiatc'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.
Inverfiatc's Operating Margin % for the fiscal year that ended in Dec. 2015 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.
Inverfiatc (LTS:0J7P) has a Operating Margin % of 7.75% as of Jun. 2016. Operating margin is the ratio of total operating income to net sales. View historical data on Inverfiatc and its competitors. This is 310% above median its historical median of 1.89.
Is Inverfiatc's Operating Margin % too high?
Inverfiatc's current Operating Margin % of 7.75% is 310% above median its 10-year median of 1.89. The Homebuilding & Construction industry median Operating Margin % is 7.76. Inverfiatc's value of 7.75% is 0.1% below this industry median.
How does Inverfiatc's Operating Margin % compare to HOV and NOBH?
Inverfiatc's Operating Margin % of 7.75% can be compared against companies in the Homebuilding & Construction industry. The industry median Operating Margin % is 7.76. Inverfiatc's value of 7.75% is 0.1% below this benchmark. While the company's 10-year median is 1.89 vs. the industry median of 7.76, Inverfiatc 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 a Homebuilding & Construction company?
The median Operating Margin % among Homebuilding & Construction companies is 7.76, based on 91 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. Inverfiatc's current Operating Margin % of 7.75% is 0.1% 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 Inverfiatc and its competitors. For the Homebuilding & Construction industry, the median Operating Margin % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inverfiatc's current Operating Margin % is 7.75%, which is 310% above median its own 10-year median of 1.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inverfiatc stock overvalued right now?
Inverfiatc (LTS:0J7P) has a current Operating Margin % of 7.75%. The current Operating Margin % is 7.75%, which is 310% above median its 10-year median of 1.89 and 0.1% below the Homebuilding & Construction industry median of 7.76. 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 Inverfiatc (LTS:0J7P), the current Operating Margin % is 7.75% as of Jun. 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.
Inverfiatc SA is engaged in development and sale of residential, commercial and industrial buildings, residential property management, as well as the construction and operation of geriatric centers.
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