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Property For Industry (NZSE:PFI) Operating Margin % : 71.27% (As of Dec. 2023)


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What is Property For Industry Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Property For Industry's Operating Income for the six months ended in Dec. 2023 was NZ$42.7 Mil. Property For Industry's Revenue for the six months ended in Dec. 2023 was NZ$60.0 Mil. Therefore, Property For Industry's Operating Margin % for the quarter that ended in Dec. 2023 was 71.27%.

Warning Sign:

Property For Industry Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2%.

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

NZSE:PFI' s Operating Margin % Range Over the Past 10 Years
Min: 71.27   Med: 79.91   Max: 89.31
Current: 71.27


NZSE:PFI's Operating Margin % is ranked better than
78.29% of 691 companies
in the REITs industry
Industry Median: 51.49 vs NZSE:PFI: 71.27

Property For Industry's 5-Year Average Operating Margin % Growth Rate was -2.00% per year.

Property For Industry's Operating Income for the six months ended in Dec. 2023 was NZ$42.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was NZ$81.9 Mil.


Property For Industry Operating Margin % Historical Data

The historical data trend for Property For Industry'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.

Property For Industry Operating Margin % Chart

Property For Industry 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 79.11 76.99 77.64 76.45 71.27

Property For Industry 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 76.95 77.30 75.62 71.26 71.27

Competitive Comparison of Property For Industry's Operating Margin %

For the REIT - Industrial subindustry, Property For Industry'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.


Property For Industry's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Property For Industry's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Property For Industry's Operating Margin % falls into.



Property For Industry 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.

Property For Industry'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 )
=81.924 / 114.955
=71.27 %

Property For Industry'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 )
=42.737 / 59.963
=71.27 %

* 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.


Property For Industry  (NZSE:PFI) 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.


Property For Industry Operating Margin % Related Terms

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Property For Industry (NZSE:PFI) Business Description

Traded in Other Exchanges
N/A
Address
15 Galway Street, Level 4, Hayman Kronfeld Building, PO Box 1147, Auckland, NZL, 1140
Property For Industry Ltd is a New Zealand-based industrial property investment company. The company's portfolio is primarily composed of industrial properties. The company's investment properties are solely located in New Zealand, with the majority in Auckland and the remaining in other major New Zealand cities. The company's major tenants encompass large enterprises such as Fisher and Paykel Appliances, Fletcher Building Products, and Ebos and DHL Supply Chain. Rental and management fee income represents nearly all of the group's operating revenue. Property For Industry is managed by PFIM, which appointed McDougall Reidy and Co. as its subcontractor to provide property and administrative management services.

Property For Industry (NZSE:PFI) Headlines