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Eurocharm Holdings Co (TPE:5288) Operating Margin % : 15.88% (As of Jun. 2024)


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What is Eurocharm Holdings Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Eurocharm Holdings Co's Operating Income for the three months ended in Jun. 2024 was NT$302 Mil. Eurocharm Holdings Co's Revenue for the three months ended in Jun. 2024 was NT$1,900 Mil. Therefore, Eurocharm Holdings Co's Operating Margin % for the quarter that ended in Jun. 2024 was 15.88%.

Good Sign:

Eurocharm Holdings Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

TPE:5288' s Operating Margin % Range Over the Past 10 Years
Min: 9.82   Med: 12.38   Max: 15.24
Current: 15.24


TPE:5288's Operating Margin % is ranked better than
80.23% of 526 companies
in the Conglomerates industry
Industry Median: 5.715 vs TPE:5288: 15.24

Eurocharm Holdings Co's 5-Year Average Operating Margin % Growth Rate was 3.80% per year.

Eurocharm Holdings Co's Operating Income for the three months ended in Jun. 2024 was NT$302 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was NT$1,114 Mil.


Eurocharm Holdings Co Operating Margin % Historical Data

The historical data trend for Eurocharm Holdings Co'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.

Eurocharm Holdings Co Operating Margin % Chart

Eurocharm Holdings Co 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 12.44 13.25 11.94 13.92 15.04

Eurocharm Holdings Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 13.53 14.78 15.19 15.06 15.88

Competitive Comparison of Eurocharm Holdings Co's Operating Margin %

For the Conglomerates subindustry, Eurocharm Holdings Co'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.


Eurocharm Holdings Co's Operating Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Eurocharm Holdings Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Eurocharm Holdings Co's Operating Margin % falls into.



Eurocharm Holdings Co 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.

Eurocharm Holdings Co'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 )
=1093.245 / 7267.327
=15.04 %

Eurocharm Holdings Co's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=301.721 / 1900.289
=15.88 %

* 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.


Eurocharm Holdings Co  (TPE:5288) 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.


Eurocharm Holdings Co Operating Margin % Related Terms

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Eurocharm Holdings Co Business Description

Traded in Other Exchanges
N/A
Address
No. 15, Lane 315, XinShu Road, XinZhuang District, New Taipei City, TWN, 242
Eurocharm Holdings Co Ltd is a metalworking supplier which is engaged in manufacturing as well as selling motorcycle and auto equipment parts, medical equipment, machine parts, and providing assembling services. The company has its base in Taiwan but is also spread from Europe to North America. Its products include Motorcycle Parts, Automotive Parts, Recreational Vehicle Parts, Medical and Healthcare Equipment. The firm generates revenue in the form of a contract-based model with the customer. The company operates in Vietnam, USA and Other countries. It derives maximum revenue from Vietnam.

Eurocharm Holdings Co Headlines

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