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.
Stademos Hotels Operating Margin % Related Terms
Stademos Hotels Operating Margin % Historical Data
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The historical data trend for Stademos Hotels'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.
For the Lodging subindustry, Stademos Hotels'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.
Stademos Hotels Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Stademos Hotels's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Stademos Hotels'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.
Stademos Hotels's Operating Margin % for the fiscal year that ended in Dec. 2018 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.
Stademos Hotels (LTS:0OA5) has a Operating Margin % of 31.01% as of Dec. 2018. Operating margin is the ratio of total operating income to net sales. View historical data on Stademos Hotels and its competitors. This is 17% above median its historical median of 26.49. Over the past decade, Stademos Hotels' Operating Margin % has ranged from 16.60 to 29.32.
Is Stademos Hotels' Operating Margin % too high?
Stademos Hotels' current Operating Margin % of 31.01% is 17% above median its 10-year median of 26.49. Over the past 10 years, this metric has ranged from a low of 16.60 to a high of 29.32. The Travel & Leisure industry median Operating Margin % is 8.14. Stademos Hotels' value of 31.01% is 281.2% above this industry median. Overall, Stademos Hotels has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Stademos Hotels' Operating Margin % compare to competitors?
Stademos Hotels' Operating Margin % of 31.01% can be compared against companies in the Travel & Leisure industry. The industry median Operating Margin % is 8.14. Stademos Hotels' value of 31.01% is 281.2% above this benchmark. Historically, Stademos Hotels' own Operating Margin % has ranged from 16.60 to 29.32 over the past decade. While the company's 10-year median is 26.49 vs. the industry median of 8.14, Stademos Hotels 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 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. Stademos Hotels's current Operating Margin % of 31.01% is 281.2% 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 Stademos Hotels and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stademos Hotels's current Operating Margin % is 31.01%, which is 17% above median its own 10-year median of 26.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stademos Hotels stock overvalued right now?
Stademos Hotels (LTS:0OA5) has a current Operating Margin % of 31.01%. The current Operating Margin % is 31.01%, which is 17% above median its 10-year median of 26.49 and 281.2% above the Travel & Leisure industry median of 8.14. Stademos Hotels' overall GF Score™ is 8/100 with 6 warning signs 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 Stademos Hotels (LTS:0OA5), the current Operating Margin % is 31.01% as of Dec. 2018. 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.
Stademos Hotels operates in the hotel industry. The principal activity of the company is the ownership and operation of hotels. The company owns and operates two hotels in Cyprus, the four-star Mediterranean beach hotel in Limassol and the five-star Elysium in Paphos.
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