gategroup Holding AGXSWX:GATE Operating Margin % is 2.41% as of Dec. 2019, which is 28% below its 10-year median of 3.35. The stock has 8 warning signs investors should review.
gategroup Holding AG (XSWX:GATE) 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.
gategroup Holding AG Operating Margin % Related Terms
gategroup Holding AG Operating Margin % Historical Data
* Premium members only.
The historical data trend for gategroup Holding AG'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.
XSWX:GATE vs CAAP, AAWW: Operating Margin % Comparison
For the Airports & Air Services subindustry, gategroup Holding AG'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.
gategroup Holding AG Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, gategroup Holding AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where gategroup Holding AG's Operating Margin % falls into.
gategroup Holding AG 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.
gategroup Holding AG's Operating Margin % for the fiscal year that ended in Dec. 2019 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.
gategroup Holding AG (XSWX:GATE) has a Operating Margin % of 2.41% as of Dec. 2019. Operating margin is the ratio of total operating income to net sales. View historical data on gategroup Holding AG and its competitors. This is 28% below median its historical median of 3.35. Over the past decade, gategroup Holding AG's Operating Margin % has ranged from 2.17 to 4.71.
Is gategroup Holding AG's Operating Margin % too high?
gategroup Holding AG's current Operating Margin % of 2.41% is 28% below median its 10-year median of 3.35. Over the past 10 years, this metric has ranged from a low of 2.17 to a high of 4.71. The Transportation industry median Operating Margin % is 7.36. gategroup Holding AG's value of 2.41% is 67.3% below this industry median.
How does gategroup Holding AG's Operating Margin % compare to CAAP and AAWW?
gategroup Holding AG's Operating Margin % of 2.41% can be compared against companies in the Transportation industry. The industry median Operating Margin % is 7.36. gategroup Holding AG's value of 2.41% is 67.3% below this benchmark. Historically, gategroup Holding AG's own Operating Margin % has ranged from 2.17 to 4.71 over the past decade. While the company's 10-year median is 3.35 vs. the industry median of 7.36, gategroup Holding AG has consistently been below the industry average. 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. gategroup Holding AG's current Operating Margin % of 2.41% is 67.3% below the industry median. 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 gategroup Holding AG and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. gategroup Holding AG's current Operating Margin % is 2.41%, which is 28% below median its own 10-year median of 3.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is gategroup Holding AG stock overvalued right now?
gategroup Holding AG (XSWX:GATE) has a current Operating Margin % of 2.41%. The current Operating Margin % is 2.41%, which is 28% below median its 10-year median of 3.35 and 67.3% below the Transportation industry median of 7.36. 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 gategroup Holding AG (XSWX:GATE), the current Operating Margin % is 2.41% as of Dec. 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.
gategroup Holding AG is engaged in the operation of airline catering and provision of related services in Switzerland. It provides airline catering, retail and technology services, onboard service equipment, and supply chain and logistics solutions. Its segments include EMEA, North America, Latin America and Asia Pacific regions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:GATE has been successfully added to your 