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WuXi Biologics (Cayman) (HKSE:02269) Operating Margin % : 30.11% (As of Jun. 2023)


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What is WuXi Biologics (Cayman) Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. WuXi Biologics (Cayman)'s Operating Income for the six months ended in Jun. 2023 was HK$2,797 Mil. WuXi Biologics (Cayman)'s Revenue for the six months ended in Jun. 2023 was HK$9,288 Mil. Therefore, WuXi Biologics (Cayman)'s Operating Margin % for the quarter that ended in Jun. 2023 was 30.11%.

Good Sign:

WuXi Biologics (Cayman) Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for WuXi Biologics (Cayman)'s Operating Margin % or its related term are showing as below:

HKSE:02269' s Operating Margin % Range Over the Past 10 Years
Min: 10.75   Med: 27.39   Max: 33.67
Current: 26.13


HKSE:02269's Operating Margin % is ranked better than
92.2% of 1025 companies
in the Biotechnology industry
Industry Median: -177.8 vs HKSE:02269: 26.13

WuXi Biologics (Cayman)'s 5-Year Average Operating Margin % Growth Rate was 4.10% per year.

WuXi Biologics (Cayman)'s Operating Income for the six months ended in Jun. 2023 was HK$2,797 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was HK$4,868 Mil.


WuXi Biologics (Cayman) Operating Margin % Historical Data

The historical data trend for WuXi Biologics (Cayman)'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.

WuXi Biologics (Cayman) Operating Margin % Chart

WuXi Biologics (Cayman) 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 26.53 31.39 33.67 31.43 26.12

WuXi Biologics (Cayman) Semi-Annual Data
Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 27.04 36.93 26.50 30.11 22.16

Competitive Comparison of WuXi Biologics (Cayman)'s Operating Margin %

For the Biotechnology subindustry, WuXi Biologics (Cayman)'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.


WuXi Biologics (Cayman)'s Operating Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, WuXi Biologics (Cayman)'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where WuXi Biologics (Cayman)'s Operating Margin % falls into.



WuXi Biologics (Cayman) 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.

WuXi Biologics (Cayman)'s Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=5358.394 / 17050.737
=31.43 %

WuXi Biologics (Cayman)'s Operating Margin % for the quarter that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=2797.106 / 9288.435
=30.11 %

* 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.


WuXi Biologics (Cayman)  (HKSE:02269) 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.


WuXi Biologics (Cayman) Operating Margin % Related Terms

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WuXi Biologics (Cayman) (HKSE:02269) Business Description

Address
No. 108, Meiliang Road, Mashan Binhu District, Wuxi, CHN, 214092
WuXi Biologics is one of the largest global biologics CRDMOs. WuXi Biologics, incorporated in 2014 following the reorganization of WuXi PharmaTech, later known as WuXi AppTec, now has global revenue of CNY 15 billion. North American represented 55.6% of total revenue in 2022. It adopts the follow and win the molecule strategy by providing end-to-end services, from drug discovery to commercial manufacturing. It also adopts a global dual-sourcing strategy by providing drug products and large-scale drug substance manufacturing.

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