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Centennial Resource Development Operating Margin %

: 7.90% (As of Sep. 2019)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Centennial Resource Development's Operating Income for the three months ended in Sep. 2019 was USD 18.1 Mil. Centennial Resource Development's Revenue for the three months ended in Sep. 2019 was USD 229.1 Mil. Therefore, Centennial Resource Development's Operating Margin % for the quarter that ended in Sep. 2019 was 7.90%.

NAS:CDEV' s Operating Margin % Range Over the Past 10 Years
Min: -213.72   Max: 32.98
Current: 15.99

-213.72
32.98

NAS:CDEV's Operating Margin % is ranked higher than
71% of the 1128 Companies
in the Oil & Gas industry.

( Industry Median: 3.96 vs. NAS:CDEV: 15.99 )

Centennial Resource Development's 5-Year Average operating margin Growth Rate was 0.00% per year.

Centennial Resource Development's Operating Income for the three months ended in Sep. 2019 was USD 18.1 Mil. Its operating income for the trailing twelve months (TTM) ended in Sep. 2019 was USD 145.5 Mil.

Warning Sign:

Centennial Resource Development Inc had operating loss over the past 3 years.


Centennial Resource Development Operating Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Centennial Resource Development Annual Data
Dec14 Dec15 Dec16 Dec17 Dec18
Operating Margin % 1.28 -53.31 -213.72 24.48 32.98

Centennial Resource Development Quarterly Data
Dec14 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
Operating Margin % 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 33.20 22.27 16.95 17.00 7.90

Competitive Comparison
* 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.


Centennial Resource Development Operating Margin % Distribution

* The bar in red indicates where Centennial Resource Development's Operating Margin % falls into.



Centennial Resource Development 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.

Centennial Resource Development's Operating Margin for the fiscal year that ended in Dec. 2018 is calculated as

Operating Margin %=Operating Income (A: Dec. 2018 ) / Revenue (A: Dec. 2018 )
=293.851 / 891.045
=32.98 %

Centennial Resource Development's Operating Margin for the quarter that ended in Sep. 2019 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 )
=18.109 / 229.13
=7.90 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Centennial Resource Development  (NAS:CDEV) 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

Compared with a company's EBITDA margin, 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 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.


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