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GEK Terna Holding Real Estate Construction (LTS:0JT4) Operating Margin % : 11.41% (As of Jun. 2024)


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What is GEK Terna Holding Real Estate Construction Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. GEK Terna Holding Real Estate Construction's Operating Income for the six months ended in Jun. 2024 was €173 Mil. GEK Terna Holding Real Estate Construction's Revenue for the six months ended in Jun. 2024 was €1,515 Mil. Therefore, GEK Terna Holding Real Estate Construction's Operating Margin % for the quarter that ended in Jun. 2024 was 11.41%.

Warning Sign:

GEK Terna Holding Real Estate Construction SA operating margin has been in a 5-year decline. The average rate of decline per year is -4%.

The historical rank and industry rank for GEK Terna Holding Real Estate Construction's Operating Margin % or its related term are showing as below:

LTS:0JT4' s Operating Margin % Range Over the Past 10 Years
Min: 3.62   Med: 12.27   Max: 17.01
Current: 11.72


LTS:0JT4's Operating Margin % is ranked better than
76.62% of 1728 companies
in the Construction industry
Industry Median: 5.395 vs LTS:0JT4: 11.72

GEK Terna Holding Real Estate Construction's 5-Year Average Operating Margin % Growth Rate was -4.00% per year.

GEK Terna Holding Real Estate Construction's Operating Income for the six months ended in Jun. 2024 was €173 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was €400 Mil.


GEK Terna Holding Real Estate Construction Operating Margin % Historical Data

The historical data trend for GEK Terna Holding Real Estate Construction'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.

GEK Terna Holding Real Estate Construction Operating Margin % Chart

GEK Terna Holding Real Estate Construction 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 14.60 11.75 14.95 11.35 10.62

GEK Terna Holding Real Estate Construction Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 8.95 12.77 9.04 11.96 11.41

Competitive Comparison of GEK Terna Holding Real Estate Construction's Operating Margin %

For the Engineering & Construction subindustry, GEK Terna Holding Real Estate Construction'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.


GEK Terna Holding Real Estate Construction's Operating Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, GEK Terna Holding Real Estate Construction's Operating Margin % distribution charts can be found below:

* The bar in red indicates where GEK Terna Holding Real Estate Construction's Operating Margin % falls into.



GEK Terna Holding Real Estate Construction 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.

GEK Terna Holding Real Estate Construction'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 )
=371.662 / 3499.207
=10.62 %

GEK Terna Holding Real Estate Construction's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=172.827 / 1515.233
=11.41 %

* 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.


GEK Terna Holding Real Estate Construction  (LTS:0JT4) 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.


GEK Terna Holding Real Estate Construction Operating Margin % Related Terms

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GEK Terna Holding Real Estate Construction Business Description

Traded in Other Exchanges
Address
85, Mesogeion Avenue, Athens, GRC, 115 26
GEK Terna Holding Real Estate Construction SA is a building construction company engaged in the development and management of investment property. The firm constructs property of any kind, manages self-financed or co-financed projects, operates energy projects, as well as its, participates in companies having similar activities. It operates in seven business segments, Construction, Electricity from RES, Electricity from thermal energy and EP/NG trading , Real Estate, Mining/Industry, Concessions, and Holding. GEK Terna operates in Greece, Balkans, Eastern Europe, the USA, and other regions.

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