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Ecotel Communication AG (XTER:E4C) Operating Margin % : 1.44% (As of Mar. 2025)


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What is Ecotel Communication AG Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ecotel Communication AG's Operating Income for the three months ended in Mar. 2025 was €0.4 Mil. Ecotel Communication AG's Revenue for the three months ended in Mar. 2025 was €28.6 Mil. Therefore, Ecotel Communication AG's Operating Margin % for the quarter that ended in Mar. 2025 was 1.44%.

Good Sign:

Ecotel Communication AG operating margin is expanding. Margin expansion is usually a good sign.

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

XTER:E4C' s Operating Margin % Range Over the Past 10 Years
Min: 1.65   Med: 2.48   Max: 19.34
Current: 2.54


XTER:E4C's Operating Margin % is ranked worse than
74.26% of 373 companies
in the Telecommunication Services industry
Industry Median: 10.17 vs XTER:E4C: 2.54

Ecotel Communication AG's 5-Year Average Operating Margin % Growth Rate was 16.30% per year.

Ecotel Communication AG's Operating Income for the three months ended in Mar. 2025 was €0.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 was €3.0 Mil.


Ecotel Communication AG Operating Margin % Historical Data

The historical data trend for Ecotel Communication 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.

* Premium members only.

Ecotel Communication AG Operating Margin % Chart

Ecotel Communication AG Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 4.73 19.34 7.18 2.52

Ecotel Communication AG Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 1.44 1.99 -0.66 7.22 1.44

Competitive Comparison of Ecotel Communication AG's Operating Margin %

For the Telecom Services subindustry, Ecotel Communication 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.


Ecotel Communication AG's Operating Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Ecotel Communication AG's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ecotel Communication AG's Operating Margin % falls into.


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Ecotel Communication 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.

Ecotel Communication AG'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 )
=2.906 / 115.542
=2.52 %

Ecotel Communication AG's Operating Margin % for the quarter that ended in Mar. 2025 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=0.411 / 28.575
=1.44 %

* 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.


Ecotel Communication AG  (XTER:E4C) 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.


Ecotel Communication AG Operating Margin % Related Terms

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Ecotel Communication AG Business Description

Traded in Other Exchanges
Address
Prinzenallee 11, Dusseldorf, NW, DEU, 40549
Ecotel Communication AG is a telecommunication company operating in Germany that provides a solution to customers involved in the IT and telecommunication industry. The company operates under business segments that is Ecotel Business customers, Ecotel Wholesale, and Easybell, Majority of the firm's revenue comes from Ecotel Business customers which offers business customers throughout Germany an integrated product portfolio of voice and data services (ICT solutions). The firm's sales are mostly generated in Germany.
Executives
Peter Zils Supervisory Board
Achim Theis Board of Directors
Holger Hommes Chief Financial Officer / Prokurist
Markus Hendrich Board of Directors

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