OTG (Otg Exp) Operating Margin %: -2.26% (As of Dec. 2014)


What is Otg Exp Operating Margin %?

Otg Exp OTG Operating Margin % is -2.26% as of Dec. 2014.

Operating Margin % is calculated as Operating Income divided by its Revenue. Otg Exp's Operating Income for the six months ended in Dec. 2014 was $-6.18 Mil. Otg Exp's Revenue for the six months ended in Dec. 2014 was $273.60 Mil. Therefore, Otg Exp's Operating Margin % for the quarter that ended in Dec. 2014 was -2.26%.

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


OTG's Operating Margin % is not ranked *
in the Restaurants industry.
Industry Median: 4.26
* Ranked among companies with meaningful Operating Margin % only.

Otg Exp's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Otg Exp's Operating Income for the six months ended in Dec. 2014 was $-6.18 Mil.

Otg Exp  (NAS:OTG) 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.

Otg Exp Operating Margin % Related Terms

Otg Exp Operating Margin % Historical Data

* Premium members only.

The historical data trend for Otg Exp'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.

Otg Exp Operating Margin % Chart

Otg Exp Annual Data
Trend Dec13 Dec14
Operating Margin %
-2.69 -2.26

Otg Exp Semi-Annual Data
Dec13 Dec14
Operating Margin % -2.69 -2.26

OTG vs IRGTQ, CDIF, STRZ: Operating Margin % Comparison

For the Restaurants subindustry, Otg Exp'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.

Otg Exp Operating Margin % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Otg Exp's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Otg Exp's Operating Margin % falls into.


Otg Exp 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.

Otg Exp's Operating Margin % for the fiscal year that ended in Dec. 2014 is calculated as

Operating Margin %=Operating Income (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=-6.183 / 273.603
=-2.26 %

Otg Exp's Operating Margin % for the quarter that ended in Dec. 2014 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 )
=-6.183 / 273.603
=-2.26 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -2.26% mean?
Otg Exp (OTG) has a Operating Margin % of -2.26% as of Dec. 2014. Operating margin is the ratio of total operating income to net sales. View historical data on Otg Exp and its competitors.
Is Otg Exp's Operating Margin % too high?
Otg Exp's current Operating Margin % is -2.26%.
How does Otg Exp's Operating Margin % compare to IRGTQ and CDIF?
Otg Exp's Operating Margin % of -2.26% can be compared against companies in the Restaurants industry. The industry median Operating Margin % is 4.26. 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 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. 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 Otg Exp and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otg Exp's current Operating Margin % is -2.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otg Exp stock overvalued right now?
Otg Exp (OTG) has a current Operating Margin % of -2.26%. The current Operating Margin % is -2.26%. 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 Otg Exp (OTG), the current Operating Margin % is -2.26% as of Dec. 2014. 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.

Otg Exp Business Description

Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.