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NTOIY (Neste OYJ) Operating Margin % : 3.38% (As of Sep. 2024)


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What is Neste OYJ Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Neste OYJ's Operating Income for the three months ended in Sep. 2024 was $211 Mil. Neste OYJ's Revenue for the three months ended in Sep. 2024 was $6,242 Mil. Therefore, Neste OYJ's Operating Margin % for the quarter that ended in Sep. 2024 was 3.38%.

Warning Sign:

Neste OYJ operating margin has been in a 5-year decline. The average rate of decline per year is -1.2%.

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

NTOIY' s Operating Margin % Range Over the Past 10 Years
Min: 1.57   Med: 9.71   Max: 16.25
Current: 4.37


NTOIY's Operating Margin % is ranked worse than
58.12% of 948 companies
in the Oil & Gas industry
Industry Median: 7.82 vs NTOIY: 4.37

Neste OYJ's 5-Year Average Operating Margin % Growth Rate was -1.20% per year.

Neste OYJ's Operating Income for the three months ended in Sep. 2024 was $211 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $1,019 Mil.


Neste OYJ Operating Margin % Historical Data

The historical data trend for Neste OYJ'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.

Neste OYJ Operating Margin % Chart

Neste OYJ 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 16.25 9.18 14.53 10.45 8.99

Neste OYJ Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 13.88 5.46 7.42 0.93 3.38

Competitive Comparison of Neste OYJ's Operating Margin %

For the Oil & Gas Refining & Marketing subindustry, Neste OYJ'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.


Neste OYJ's Operating Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Neste OYJ's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Neste OYJ's Operating Margin % falls into.



Neste OYJ 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.

Neste OYJ'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 )
=2248.637 / 25002.181
=8.99 %

Neste OYJ's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=210.877 / 6241.953
=3.38 %

* 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.


Neste OYJ  (OTCPK:NTOIY) 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.


Neste OYJ Operating Margin % Related Terms

Thank you for viewing the detailed overview of Neste OYJ's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Neste OYJ Business Description

Address
Keilaranta 21, P.O. Box 95, Neste, Espoo, FIN, 00095
Neste OYJ Formerly Neste Corp. offers renewable products and solutions and oil products to a host of global markets. Its business is divided into various segments, including oil products, renewable products, marketing and services and others. Oil products is the largest contributor of revenue; it caters to oil companies and businesses that market oil, lubricants, and fuel products. Neste's oil products business includes diesel fuels, gasoline, aviation and marine fuels, and light and heavy fuel oils. Neste is heavily involved in the Baltic region with its network of service stations and refineries.