GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Companhia De Saneamento Basico Do Estado De Sao Paulo (NYSE:SBS) » Definitions » Operating Margin %

Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Operating Margin % : 26.37% (As of Sep. 2023)


View and export this data going back to 2002. Start your Free Trial

What is Companhia Deneamento Basico Do Estado Deo Paulo Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Companhia Deneamento Basico Do Estado Deo Paulo's Operating Income for the three months ended in Sep. 2023 was $345 Mil. Companhia Deneamento Basico Do Estado Deo Paulo's Revenue for the three months ended in Sep. 2023 was $1,307 Mil. Therefore, Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % for the quarter that ended in Sep. 2023 was 26.37%.

Warning Sign:

Companhia De Saneamento Basico Do Estado De Sao Paulo operating margin has been in a 5-year decline. The average rate of decline per year is -7.7%.

The historical rank and industry rank for Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % or its related term are showing as below:

SBS' s Operating Margin % Range Over the Past 10 Years
Min: 17.06   Med: 25.57   Max: 32.14
Current: 21.53


SBS's Operating Margin % is ranked better than
73.44% of 512 companies
in the Utilities - Regulated industry
Industry Median: 12.3 vs SBS: 21.53

Companhia Deneamento Basico Do Estado Deo Paulo's 5-Year Average Operating Margin % Growth Rate was -7.70% per year.

Companhia Deneamento Basico Do Estado Deo Paulo's Operating Income for the three months ended in Sep. 2023 was $345 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $1,033 Mil.


Companhia Deneamento Basico Do Estado Deo Paulo Operating Margin % Historical Data

The historical data trend for Companhia Deneamento Basico Do Estado Deo Paulo'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.

Companhia Deneamento Basico Do Estado Deo Paulo Operating Margin % Chart

Companhia Deneamento Basico Do Estado Deo Paulo Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.14 31.74 25.16 20.91 20.95

Companhia Deneamento Basico Do Estado Deo Paulo Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 25.28 18.04 24.33 17.24 26.37

Competitive Comparison of Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin %

For the Utilities - Regulated Water subindustry, Companhia Deneamento Basico Do Estado Deo Paulo'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.


Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % falls into.



Companhia Deneamento Basico Do Estado Deo Paulo 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.

Companhia Deneamento Basico Do Estado Deo Paulo'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 )
=880.889 / 4204.774
=20.95 %

Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=344.612 / 1306.669
=26.37 %

* 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.


Companhia Deneamento Basico Do Estado Deo Paulo  (NYSE:SBS) 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.


Companhia Deneamento Basico Do Estado Deo Paulo Operating Margin % Related Terms

Thank you for viewing the detailed overview of Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Business Description

Traded in Other Exchanges
Address
Rua Costa Carvalho, 300, Sao Paulo, SP, BRA, 05429-900
Companhia De Saneamento Basico Do Estado De Sao Paulo is Brazilian water and waste management company. SABESP is one of the largest waste management companies in the world, and the state of Sao Paulo is the company's majority stakeholder. The company generates revenue through exclusive long-term agreements with municipal governments. It is not uncommon for SABESP to serve the vast majority of the market. The company operates in a single segment, which is Sanitation services.

Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Headlines