Romande Energie HoldingXSWX:REHN +0.21%71 Operating Margin % is 5.73% as of Jun. 2025, which is 53% below its 10-year median of 12.18. GuruFocus rates XSWX:REHN with a GF Score™ of 71/100 and a GF Value™ of CHF46.44 (Fairly Valued). The stock has 8 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, Romande Energie Holding ranks worse than 67.15% on this metric.
Romande Energie Holding SA operating margin has been in a 5-year decline. The average rate of decline per year is -18.1%.
The historical rank and industry rank for Romande Energie Holding's Operating Margin % or its related term are showing as below:
XSWX:REHN'
s Operating Margin % Range Over the Past 10 Years
Min: 3.58 Med: 12.18 Max: 17.43
Current: 4.02
XSWX:REHN's Operating Margin % is ranked worse than 67.15% of 417
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.27
vs XSWX:REHN: 4.02
Romande Energie Holding's 5-Year Average Operating Margin % Growth Rate was -18.10% per year.
Romande Energie Holding (XSWX:REHN) 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.
Romande Energie Holding Operating Margin % Related Terms
Romande Energie Holding Operating Margin % Historical Data
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The historical data trend for Romande Energie Holding'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.
Romande Energie Holding Operating Margin % Competitor Comparison
For the Utilities - Renewable subindustry, Romande Energie Holding'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.
Romande Energie Holding Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Romande Energie Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Romande Energie Holding's Operating Margin % falls into.
Romande Energie Holding 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.
Romande Energie Holding's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Romande Energie Holding (XSWX:REHN) has a Operating Margin % of 5.73% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Romande Energie Holding and its competitors. This is 53% below median its historical median of 12.18. Over the past decade, Romande Energie Holding's Operating Margin % has ranged from 3.58 to 17.43. According to the industry distribution chart, Romande Energie Holding ranks #280 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 67.1%.
Is Romande Energie Holding's Operating Margin % too high?
Romande Energie Holding's current Operating Margin % of 5.73% is 53% below median its 10-year median of 12.18. Over the past 10 years, this metric has ranged from a low of 3.58 to a high of 17.43. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. Romande Energie Holding's value of 5.73% is 56.8% below this industry median. Based on the distribution chart, Romande Energie Holding ranks #280 out of 417 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Romande Energie Holding has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Romande Energie Holding's Operating Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Romande Energie Holding ranks #280 out of 417 companies for Operating Margin %. This places Romande Energie Holding in the lower half of its industry. The industry median Operating Margin % is 13.27. Romande Energie Holding's value of 5.73% is 56.8% below this benchmark. Historically, Romande Energie Holding's own Operating Margin % has ranged from 3.58 to 17.43 over the past decade. While the company's 10-year median is 12.18 vs. the industry median of 13.27, Romande Energie Holding 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 an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 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. Romande Energie Holding's current Operating Margin % of 5.73% is 56.8% 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 Romande Energie Holding and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Romande Energie Holding's current Operating Margin % is 5.73%, which is 53% below median its own 10-year median of 12.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Romande Energie Holding stock overvalued right now?
Based on GuruFocus' analysis, Romande Energie Holding (XSWX:REHN) is currently considered Fairly Valued. The stock's GF Value™ is CHF46.44, compared to a current price of CHF48.50 — trading 4.4% above its estimated fair value. The current Operating Margin % is 5.73%, which is 53% below median its 10-year median of 12.18 and 56.8% below the Utilities - Independent Power Producers industry median of 13.27. Romande Energie Holding's overall GF Score™ is 71/100 with 8 warning signs to review. 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 Romande Energie Holding (XSWX:REHN), the current Operating Margin % is 5.73% as of Jun. 2025. 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.
Is Romande Energie Holding (XSWX:REHN) Overvalued in 2026?
Based on GuruFocus' analysis, Romande Energie Holding stock appears to be overvalued.
The current stock price of CHF48.50 is trading 4.4% above its estimated GF Value™ of CHF46.44.
GuruFocus considers Romande Energie Holding to be Fairly Valued.
Key valuation signals for XSWX:REHN:
Operating Margin %: 5.73% (53% below median its 10-year median of 12.18)
GF Value™: CHF46.44 vs. price of CHF48.50 (4.4% above fair value)
Industry Position: 56.8% below the Utilities - Independent Power Producers median (#280 of 417)
No single metric tells the full story. See the XSWX:REHN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Romande Energie Holding SA is a Swiss utility company involved in the generation, distribution, and marketing of electricity and energy services. The company's segment includes Grids; Energy Solutions; Romande Energie Services and Corporate. It generates maximum revenue from the Energy Solutions segment. The Energy Solutions business unit spans the entire kWh chain, operating through two divisions: generation and power/heating distribution; and end-markets. The Energy division's main mission is to maintain the security of supply for customers. It also develops new installations powered by renewable energy sources. The Markets division offers turnkey solutions to its various customers.
71GF Score
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