Operating Margin % is calculated as Operating Income divided by its Revenue. SITO Mobile's Operating Income for the
three
months ended in Sep. 2019 was $-13.93 Mil. SITO Mobile's Revenue for the
three
months ended in Sep. 2019 was $2.81 Mil. Therefore, SITO Mobile's Operating Margin % for the quarter that ended in Sep. 2019 was -495.98%.
The historical rank and industry rank for SITO Mobile's Operating Margin % or its related term are showing as below:
STTO's Operating Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 9.73 * Ranked among companies with meaningful Operating Margin % only.
SITO Mobile's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
SITO Mobile's Operating Income for the
three
months ended in Sep. 2019 was $-13.93 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2019 was $-21.57 Mil.
SITO Mobile (OTCPK:STTO) 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.
SITO Mobile Operating Margin % Related Terms
SITO Mobile Operating Margin % Historical Data
* Premium members only.
The historical data trend for SITO Mobile'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.
STTO vs MTSL, IQST, WINMQ: Operating Margin % Comparison
For the Telecom Services subindustry, SITO Mobile'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.
SITO Mobile Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, SITO Mobile's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SITO Mobile's Operating Margin % falls into.
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.
SITO Mobile's Operating Margin % for the fiscal year that ended in Dec. 2018 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.
SITO Mobile (STTO) has a Operating Margin % of -495.98% as of Sep. 2019. Operating margin is the ratio of total operating income to net sales. View historical data on SITO Mobile and its competitors.
Is SITO Mobile's Operating Margin % too high?
SITO Mobile's current Operating Margin % is -495.98%. Overall, SITO Mobile has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does SITO Mobile's Operating Margin % compare to MTSL and IQST?
SITO Mobile's Operating Margin % of -495.98% can be compared against companies in the Telecommunication Services industry. The industry median Operating Margin % is 9.73. 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 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 SITO Mobile and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SITO Mobile's current Operating Margin % is -495.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SITO Mobile stock overvalued right now?
SITO Mobile (STTO) has a current Operating Margin % of -495.98%. The current Operating Margin % is -495.98%. SITO Mobile's overall GF Score™ is 12/100. 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 SITO Mobile (STTO), the current Operating Margin % is -495.98% as of Sep. 2019. 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.
SITO Mobile Ltd operates a mobile location-based advertising platform serving businesses, advertisers, and brands. Business activity of the group is operated SITO Location Based Advertising and SITO Mobile Messaging source. SITO Location Based Advertising displays advertisements and videos on behalf of advertisers including various features, such as geo-fencing, verified walk-in, behavioral targeting, and analytics and optimization; and SITO Mobile Messaging is a platform for building and controlling tailored programs including messaging and customer incentive programs. Its platform and tools are designed to enable large brands or anyone with substantial reach to utilize the mobile device as a new means to communicate.
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