Suntech Infra SolutionsNSE:SUNTECH -4.93%2 Operating Margin % is 18.07% as of Mar. 2024. GuruFocus rates NSE:SUNTECH with a GF Score™ of 2/100. Among 1,761 Construction companies, Suntech Infra Solutions ranks worse than 56785.86% on this metric.
The historical rank and industry rank for Suntech Infra Solutions's Operating Margin % or its related term are showing as below:
NSE:SUNTECH's Operating Margin % is not ranked *
in the Construction industry.
Industry Median: 5.89 * Ranked among companies with meaningful Operating Margin % only.
Suntech Infra Solutions (NSE:SUNTECH) 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 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.
Suntech Infra Solutions Operating Margin % Related Terms
Suntech Infra Solutions Operating Margin % Historical Data
* Premium members only.
The historical data trend for Suntech Infra Solutions'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.
Suntech Infra Solutions Operating Margin % Chart
Suntech Infra Solutions Annual Data
Trend
Mar22
Mar23
Mar24
Operating Margin %
8.62
12.67
18.07
Suntech Infra Solutions Semi-Annual Data
Mar22
Mar23
Mar24
Operating Margin %
8.62
12.67
18.07
NSE:SUNTECH vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Suntech Infra Solutions'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.
Suntech Infra Solutions Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Suntech Infra Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Suntech Infra Solutions's Operating Margin % falls into.
Suntech Infra Solutions 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.
Suntech Infra Solutions's Operating Margin % for the fiscal year that ended in Mar. 2024 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.
Suntech Infra Solutions (NSE:SUNTECH) has a Operating Margin % of 18.07% as of Mar. 2024. Operating margin is the ratio of total operating income to net sales. View historical data on Suntech Infra Solutions and its competitors. According to the industry distribution chart, Suntech Infra Solutions ranks #999999 out of 1761 companies in the Construction industry.
Is Suntech Infra Solutions' Operating Margin % too high?
Suntech Infra Solutions' current Operating Margin % is 18.07%. The Construction industry median Operating Margin % is 5.89. Suntech Infra Solutions' value of 18.07% is 206.8% above this industry median. Based on the distribution chart, Suntech Infra Solutions ranks #999999 out of 1761 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Suntech Infra Solutions has a GF Score™ of 2/100, reflecting its overall financial health beyond just this single metric.
How does Suntech Infra Solutions' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Suntech Infra Solutions ranks #999999 out of 1761 companies for Operating Margin %. This places Suntech Infra Solutions in the lower half of its industry. The industry median Operating Margin % is 5.89. Suntech Infra Solutions' value of 18.07% is 206.8% above this benchmark. 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,761 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. Suntech Infra Solutions's current Operating Margin % of 18.07% is 206.8% 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 Suntech Infra Solutions and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Suntech Infra Solutions's current Operating Margin % is 18.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Suntech Infra Solutions stock overvalued right now?
Suntech Infra Solutions (NSE:SUNTECH) has a current Operating Margin % of 18.07%. The current Operating Margin % is 18.07% and 206.8% above the Construction industry median of 5.89. Suntech Infra Solutions' overall GF Score™ is 2/100. 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 Suntech Infra Solutions (NSE:SUNTECH), the current Operating Margin % is 18.07% as of Mar. 2024. 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.
Suntech Infra Solutions Ltd operates as a business-to-business (B2B) construction company, providing civil construction services with a focus on foundation and structural works through direct contracting, subcontracting, and equipment rentals. Its offerings include turnkey piling contracts, bridge and industrial building construction, and rental of construction equipment such as cranes and piling rigs. The company serves sectors like power, oil and gas, cement, steel, refineries, fertilizers, petrochemicals, renewable energy, and urban infrastructure across various Indian states. The company has two reportable segments, namely Hiring business and Job Work business, out of which Job Work business generates the majority of the revenue.
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