GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Transcontinental Inc (OTCPK:TCLCF) » Definitions » Operating Margin %

TCLCF (Transcontinental) Operating Margin % : 11.97% (As of Oct. 2024)


View and export this data going back to 2005. Start your Free Trial

What is Transcontinental Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Transcontinental's Operating Income for the three months ended in Oct. 2024 was $65 Mil. Transcontinental's Revenue for the three months ended in Oct. 2024 was $545 Mil. Therefore, Transcontinental's Operating Margin % for the quarter that ended in Oct. 2024 was 11.97%.

Warning Sign:

Transcontinental Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4.8%.

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

TCLCF' s Operating Margin % Range Over the Past 10 Years
Min: 7.2   Med: 10.2   Max: 14.61
Current: 9.04


TCLCF's Operating Margin % is ranked better than
70.66% of 392 companies
in the Packaging & Containers industry
Industry Median: 5.865 vs TCLCF: 9.04

Transcontinental's 5-Year Average Operating Margin % Growth Rate was -4.80% per year.

Transcontinental's Operating Income for the three months ended in Oct. 2024 was $65 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2024 was $186 Mil.


Transcontinental Operating Margin % Historical Data

The historical data trend for Transcontinental'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.

Transcontinental Operating Margin % Chart

Transcontinental Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.99 9.35 7.27 7.20 9.04

Transcontinental Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 11.41 6.06 7.99 9.81 11.97

Competitive Comparison of Transcontinental's Operating Margin %

For the Packaging & Containers subindustry, Transcontinental'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.


Transcontinental's Operating Margin % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Transcontinental's Operating Margin % distribution charts can be found below:

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



Transcontinental 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.

Transcontinental's Operating Margin % for the fiscal year that ended in Oct. 2024 is calculated as

Operating Margin %=Operating Income (A: Oct. 2024 ) / Revenue (A: Oct. 2024 )
=184.779 / 2044.705
=9.04 %

Transcontinental's Operating Margin % for the quarter that ended in Oct. 2024 is calculated as

Operating Margin %=Operating Income (Q: Oct. 2024 ) / Revenue (Q: Oct. 2024 )
=65.203 / 544.668
=11.97 %

* 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.


Transcontinental  (OTCPK:TCLCF) 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.


Transcontinental Operating Margin % Related Terms

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


Transcontinental Business Description

Traded in Other Exchanges
Address
1 Place Ville Marie, Suite 3240, Affaires Juridiques, A/s Caroline Hamel, Montreal, QC, CAN, H3B 0G1
Transcontinental Inc or TC Transcontinental, is a Canadian printer and flexible packaging provider that operates in three segments: packaging, printing, and other. Its packaging segment features the production of different plastic products geared toward consumer goods. Production plants specialize in extrusion, lamination, printing, and converting. The company offers premedia, printing, and distribution services through the printing segment. Publishers, retailers, cataloguers, and marketers are some of the customers who tap TC Transcontinental for these printing solutions. The smaller other segment focuses on the media sector, which generates revenue from print and digital publishing products.

Transcontinental Headlines

From GuruFocus

Q4 2023 Transcontinental Inc Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q1 2023 Transcontinental Inc Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q3 2019 Transcontinental Inc Earnings Call Transcript

By GuruFocus Research 02-15-2024

Transcontinental Inc's Dividend Analysis

By GuruFocus Research 01-05-2024

Q4 2020 Transcontinental Inc Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q2 2022 Transcontinental Inc Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q1 2024 Transcontinental Inc Earnings Call Transcript

By GuruFocus Research 03-14-2024

Q2 2020 Transcontinental Inc Earnings Call Transcript

By GuruFocus Research 02-15-2024