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NxStage Medical (NxStage Medical) Operating Margin % : 1.17% (As of Sep. 2018)


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What is NxStage Medical Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. NxStage Medical's Operating Income for the three months ended in Sep. 2018 was $1.3 Mil. NxStage Medical's Revenue for the three months ended in Sep. 2018 was $108.1 Mil. Therefore, NxStage Medical's Operating Margin % for the quarter that ended in Sep. 2018 was 1.17%.

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


NXTM's Operating Margin % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 1.275
* Ranked among companies with meaningful Operating Margin % only.

NxStage Medical's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

NxStage Medical's Operating Income for the three months ended in Sep. 2018 was $1.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2018 was $-2.8 Mil.


NxStage Medical Operating Margin % Historical Data

The historical data trend for NxStage Medical'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.

NxStage Medical Operating Margin % Chart

NxStage Medical Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.76 -7.36 -4.35 -1.17 -3.52

NxStage Medical Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 -8.51 -1.77 -1.05 -1.02 1.17

Competitive Comparison of NxStage Medical's Operating Margin %

For the Medical Instruments & Supplies subindustry, NxStage Medical'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.


NxStage Medical's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, NxStage Medical's Operating Margin % distribution charts can be found below:

* The bar in red indicates where NxStage Medical's Operating Margin % falls into.



NxStage Medical 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.

NxStage Medical's Operating Margin % for the fiscal year that ended in Dec. 2017 is calculated as

Operating Margin %=Operating Income (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=-13.851 / 393.941
=-3.52 %

NxStage Medical's Operating Margin % for the quarter that ended in Sep. 2018 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=1.262 / 108.122
=1.17 %

* 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.


NxStage Medical  (NAS:NXTM) 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.


NxStage Medical Operating Margin % Related Terms

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NxStage Medical (NxStage Medical) Business Description

Traded in Other Exchanges
N/A
Address
NxStage Medical develops and manufactures products and services for patients with chronic or acute kidney failure. The firm operates in three segments: System One, In-Center, and Services. The System One segment contributes the majority of revenue. It sells and rents the System One portable hemodialysis systems and related consumable products for home and critical care hemodialysis treatments. The In-Center segment sells blood tubing sets and needles for hemodialysis, primarily to dialysis clinics. This business has a high degree of customer concentration. The Services business provides dialysis to customers at NxStage Kidney Care dialysis centers. NxStage generates the majority of its revenue in the United States.
Executives
Earl R Lewis director C/O NXSTAGE MEDICAL INC. (NXTM), 439 SOUTH UNION STREET, 5TH FLOOR, LAWRENCE MA 01843
Craig W Moore director C/O NXSTAGE MEDICAL INC. (NXTM), 439 SOUTH UNION STREET, 5TH FLOOR, LAWRENCE MA 01843
Jeffrey H Burbank director, officer: Chief Executive Officer NXSTAGE MEDICAL INC, 439 SOUTH UNION STREET 5TH FLOOR, LAWRENCE MA 01843
James J Peters director C/O NXSTAGE MEDICAL, INC., 350 MERRIMACK STREET, LAWRENCE MA 01843
Heyward R Donigan director 452 DISCOVERY ROAD, VIRGINIA BEACH VA 23451
Jean K Mixer director C/O NXSTAGE MEDICAL, INC., 350 MERRIMACK STREET, LAWRENCE MA 01843
Kevin Hershberger officer: Chief Accounting Officer 350 MERRIMACK STREET, LAWRENCE MA 01843
Philippe O. Chambon director C/O NEW LEAF VENTURE PARTNERS, 7 TIMES SQUARE, SUITE 3502, NEW YORK NY 10036
Deerfield Management Company, L.p. (series C) 10 percent owner, other: Possible Member of 10% Group 345 PARK AVENUE SOUTH, 12TH FLOOR, NEW YORK NY 10010
Deerfield Mgmt L.p. 10 percent owner, other: Possible Member of 10% Group 780 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Deerfield Partners, L.p. 10 percent owner, other: Possible Member of 10% Group 345 PARK AVENUE SOUTH, 12TH FLOOR, NEW YORK NY 10010
James E Flynn 10 percent owner, other: Possible Member of 10% Group 780 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Deerfield Special Situations Fund, L.p. 10 percent owner, other: Possible Member of 10% Group 780 3RD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Deerfield International Master Fund, L.p. 10 percent owner, other: Possible Member of 10% Group 780 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Deerfield Special Situations International Master Fund, L.p. 10 percent owner, other: Possible Member of 10% Group 780 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017

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