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Highcon Systems (XTAE:HICN) Operating Margin % : -79.29% (As of Dec. 2024)


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What is Highcon Systems Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Highcon Systems's Operating Income for the six months ended in Dec. 2024 was ₪-23.44 Mil. Highcon Systems's Revenue for the six months ended in Dec. 2024 was ₪29.57 Mil. Therefore, Highcon Systems's Operating Margin % for the quarter that ended in Dec. 2024 was -79.29%.

Good Sign:

Highcon Systems Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

XTAE:HICN' s Operating Margin % Range Over the Past 10 Years
Min: -278.16   Med: -149.91   Max: -59.71
Current: -59.71


XTAE:HICN's Operating Margin % is ranked worse than
95.23% of 2979 companies
in the Industrial Products industry
Industry Median: 6.57 vs XTAE:HICN: -59.71

Highcon Systems's 5-Year Average Operating Margin % Growth Rate was 9.50% per year.

Highcon Systems's Operating Income for the six months ended in Dec. 2024 was ₪-23.44 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was ₪-38.89 Mil.

Warning Sign:

Highcon Systems Ltd has never been profitable in the past 3 years. It lost money every year.


Highcon Systems Operating Margin % Historical Data

The historical data trend for Highcon Systems'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.

Highcon Systems Operating Margin % Chart

Highcon Systems Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial -202.76 -159.01 -138.00 -278.16 -59.71

Highcon Systems Semi-Annual Data
Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -163.74 -337.11 -238.81 -43.43 -79.29

Competitive Comparison of Highcon Systems's Operating Margin %

For the Specialty Industrial Machinery subindustry, Highcon Systems'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.


Highcon Systems's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Highcon Systems's Operating Margin % distribution charts can be found below:

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


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Highcon Systems 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.

Highcon Systems'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 )
=-38.894 / 65.14
=-59.71 %

Highcon Systems'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 )
=-23.443 / 29.565
=-79.29 %

* 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.


Highcon Systems  (XTAE:HICN) 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.


Highcon Systems Operating Margin % Related Terms

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Highcon Systems Business Description

Traded in Other Exchanges
N/A
Address
4 Paran Street, P.O Box 13200, Yavne, ISR, 8122503
Highcon Systems Ltd is engaged in the research and development of machines for digital cutting and creasing solutions for post-print processes in the Folding Carton and Corrugated carton industry.

Highcon Systems Headlines

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