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Terna Energy (LTS:0OJX) Operating Margin % : 43.46% (As of Dec. 2023)


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What is Terna Energy Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Terna Energy's Operating Income for the six months ended in Dec. 2023 was €79.2 Mil. Terna Energy's Revenue for the six months ended in Dec. 2023 was €182.2 Mil. Therefore, Terna Energy's Operating Margin % for the quarter that ended in Dec. 2023 was 43.46%.

Warning Sign:

Terna Energy SA operating margin has been in a 5-year decline. The average rate of decline per year is -7.2%.

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

LTS:0OJX' s Operating Margin % Range Over the Past 10 Years
Min: 19.95   Med: 34.18   Max: 42.3
Current: 19.95


LTS:0OJX's Operating Margin % is ranked better than
59.86% of 416 companies
in the Utilities - Independent Power Producers industry
Industry Median: 15.99 vs LTS:0OJX: 19.95

Terna Energy's 5-Year Average Operating Margin % Growth Rate was -7.20% per year.

Terna Energy's Operating Income for the six months ended in Dec. 2023 was €79.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was €124.4 Mil.


Terna Energy Operating Margin % Historical Data

The historical data trend for Terna Energy'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.

Terna Energy Operating Margin % Chart

Terna Energy 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 37.22 34.32 41.26 22.51 37.94

Terna Energy Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 49.46 34.17 9.73 31.05 43.46

Competitive Comparison of Terna Energy's Operating Margin %

For the Utilities - Renewable subindustry, Terna Energy'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.


Terna Energy's Operating Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Terna Energy's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Terna Energy's Operating Margin % falls into.



Terna Energy 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.

Terna Energy'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 )
=124.392 / 327.831
=37.94 %

Terna Energy's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=79.178 / 182.191
=43.46 %

* 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.


Terna Energy  (LTS:0OJX) 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.


Terna Energy Operating Margin % Related Terms

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Terna Energy (LTS:0OJX) Business Description

Traded in Other Exchanges
Address
85 Mesogeion Avenue, Athens, GRC, 115 26
Terna Energy SA is a Greece based company mainly engaged in the energy and construction sector. It operates through the following segments: The Construction segment refers to the development of wind farms and other units for electricity production from renewable energy sources; The Electricity from Renewable Sources of Energy segment mainly concerns the production of electricity through wind energy; The Concessions Segment concerns the construction and operation of infrastructure and public sector projects in exchange for the long-term operation of the above projects through the provision of services to the public. The majority is from the Electricity from Renewable Sources of Energy segment. Geographically, the key revenue is from Greece.

Terna Energy (LTS:0OJX) Headlines

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