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Sanderson Farms Operating Margin %

: 27.86% (As of Apr. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Sanderson Farms's Operating Income for the three months ended in Apr. 2022 was $429 Mil. Sanderson Farms's Revenue for the three months ended in Apr. 2022 was $1,540 Mil. Therefore, Sanderson Farms's Operating Margin % for the quarter that ended in Apr. 2022 was 27.86%.

Warning Sign:

Sanderson Farms Inc operating margin has been in a 5-year decline. The average rate of decline per year is -37.1%.

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

SAFM' s Operating Margin % Range Over the Past 10 Years
Min: 0.03   Med: 9.08   Max: 20.76
Current: 20.76


SAFM's Operating Margin % is ranked better than
91.49% of 1786 companies
in the Consumer Packaged Goods industry
Industry Median: 4.84 vs SAFM: 20.76

Sanderson Farms's 5-Year Average Operating Margin % Growth Rate was -37.10% per year.

Sanderson Farms's Operating Income for the three months ended in Apr. 2022 was $429 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2022 was $1,168 Mil.


Sanderson Farms Operating Margin % Historical Data

The historical data trend for Sanderson Farms'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.

Sanderson Farms Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.72 0.92 1.98 0.03 13.17

Sanderson Farms Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 Premium Member Only Premium Member Only Premium Member Only 11.70 16.12 18.65 19.50 27.86

Competitive Comparison

For the Packaged Foods subindustry, Sanderson Farms'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.

   

Sanderson Farms Operating Margin % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Sanderson Farms's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sanderson Farms's Operating Margin % falls into.



Sanderson Farms 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.

Sanderson Farms's Operating Margin % for the fiscal year that ended in Oct. 2021 is calculated as

Operating Margin %=Operating Income (A: Oct. 2021 ) / Revenue (A: Oct. 2021 )
=632.078 / 4799.653
=13.17 %

Sanderson Farms's Operating Margin % for the quarter that ended in Apr. 2022 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2022 ) / Revenue (Q: Apr. 2022 )
=428.943 / 1539.714
=27.86 %

* 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.


Sanderson Farms  (NAS:SAFM) 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.


Sanderson Farms Operating Margin % Related Terms

Thank you for viewing the detailed overview of Sanderson Farms's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sanderson Farms Business Description

Sanderson Farms logo
Traded in Other Exchanges
Address
127 Flynt Road, Laurel, MS, USA, 39443
Sanderson Farms Inc is a dressed-chicken processor in the United States, producing and selling a variety of fresh, frozen, and value-added chicken products to grocers, food-service operators, and distributors. Most revenue is generated in the Southeastern, Southwestern, Northeastern, and Western United States. The company's product portfolio consists of tray packs and large birds, catering to grocery and food-service customers. It sells chill-packed, ice-packed, bulk-packed, and frozen chicken in whole, cut-up, and boneless form under the brand name Sanderson Farms to retailers, distributors, and casual dining operators in the United States.
Executives
Perez Sonia director 127 FLYNT ROAD LAUREL MS 39443
Kelly Green Edith director 3131 DEMOCRAT ROAD BLDG B206 MEMPHIS TN 38118
Barksdale John David director 127 FLYNT ROAD LAUREL MS 39443
Mestayer Suzanne T director 1100 POYDRAS STREET NEW ORLEANS LA 70163
Rigney Tim officer: Controller/Secretary 127 FLYNT ROAD, P.O. BOX 988 LAUREL MS 39441
Mooney Dianne director 7449 ASHLAND LANE BIRMINGHAM AL 35242
Khayat Robert C director PO BOX 1848 UNIVERSITY MS 38677
Banks Fred L Jr director 111 EAST CAPITOL STREET SUITE 600 JACKSON MS 39201-2122
Cooley Toni D director 253 OLD JACKSON ROAD MADISON MS 39110
Bierbusse John director 3500 NORTH LAKE SHORE DRIVE #14A CHICAGO IL 60657
Zacharias Donald W director
Taylor Rowan director
Ritter Charles W Jr director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998
Pittman Jones Gail director C/O SANDERSON FARMS INC PO BOX 988 225 N 13TH AVE LAUREL MS 39441-0988
Livingston Phil K director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998

Sanderson Farms Headlines

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