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Solar AS (STU:ZVR) Operating Margin % : 4.33% (As of Dec. 2024)


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What is Solar AS Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Solar AS's Operating Income for the three months ended in Dec. 2024 was €19 Mil. Solar AS's Revenue for the three months ended in Dec. 2024 was €434 Mil. Therefore, Solar AS's Operating Margin % for the quarter that ended in Dec. 2024 was 4.33%.

Good Sign:

Solar AS operating margin is expanding. Margin expansion is usually a good sign.

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

STU:ZVR' s Operating Margin % Range Over the Past 10 Years
Min: 2.3   Med: 2.7   Max: 6.76
Current: 2.76


STU:ZVR's Operating Margin % is ranked worse than
55.17% of 2429 companies
in the Hardware industry
Industry Median: 3.74 vs STU:ZVR: 2.76

Solar AS's 5-Year Average Operating Margin % Growth Rate was 3.80% per year.

Solar AS's Operating Income for the three months ended in Dec. 2024 was €19 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was €45 Mil.


Solar AS Operating Margin % Historical Data

The historical data trend for Solar AS'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.

Solar AS Operating Margin % Chart

Solar AS Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.58 5.60 6.76 4.58 2.80

Solar AS Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 4.37 0.33 2.00 4.37 4.33

Competitive Comparison of Solar AS's Operating Margin %

For the Electronics & Computer Distribution subindustry, Solar AS'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.


Solar AS's Operating Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Solar AS's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Solar AS's Operating Margin % falls into.


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Solar AS 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.

Solar AS's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=45.859 / 1638.978
=2.80 %

Solar AS's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=18.773 / 433.512
=4.33 %

* 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.


Solar AS  (STU:ZVR) 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.


Solar AS Operating Margin % Related Terms

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


Solar AS Business Description

Traded in Other Exchanges
Address
Industrivej Vest 43, Vejen, DNK, 6600
Solar AS is an sourcing and services company mainly within electrical, heating & plumbing and climate & energy solutions. Its core business centres on product sourcing, value-adding services and optimisation of customer's businesses. It has three business segment; Installation, Industry and Trade. Installation covers installation of electrical, and heating and plumbing products, while industry covers industry, offshore and marine, and utility and infrastructure, trade covers other small areas. Key revenue is generated from Installation segment. The company operates in Denmark, Sweden, Norway, Netherlands, Poland and Others.

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