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Bakkafrost P/F (Bakkafrost P/F) Operating Margin % : 32.67% (As of Dec. 2023)


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What is Bakkafrost P/F Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Bakkafrost P/F's Operating Income for the three months ended in Dec. 2023 was $75 Mil. Bakkafrost P/F's Revenue for the three months ended in Dec. 2023 was $229 Mil. Therefore, Bakkafrost P/F's Operating Margin % for the quarter that ended in Dec. 2023 was 32.67%.

Warning Sign:

Bakkafrost P/F operating margin has been in a 5-year decline. The average rate of decline per year is -8.5%.

The historical rank and industry rank for Bakkafrost P/F's Operating Margin % or its related term are showing as below:

BKFKF' s Operating Margin % Range Over the Past 10 Years
Min: 14.74   Med: 23.55   Max: 51.47
Current: 17.34


BKFKF's Operating Margin % is ranked better than
89.44% of 1856 companies
in the Consumer Packaged Goods industry
Industry Median: 4.85 vs BKFKF: 17.34

Bakkafrost P/F's 5-Year Average Operating Margin % Growth Rate was -8.50% per year.

Bakkafrost P/F's Operating Income for the three months ended in Dec. 2023 was $75 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $181 Mil.

Warning Sign:

Bakkafrost P/F has recorded a loss in operating income at least once over the past 3 years.


Bakkafrost P/F Operating Margin % Historical Data

The historical data trend for Bakkafrost P/F'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.

Bakkafrost P/F Operating Margin % Chart

Bakkafrost P/F 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 22.29 14.74 20.07 24.80 17.50

Bakkafrost P/F Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 Premium Member Only Premium Member Only -5.21 28.33 -6.51 14.36 32.67

Competitive Comparison of Bakkafrost P/F's Operating Margin %

For the Farm Products subindustry, Bakkafrost P/F'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.


Bakkafrost P/F's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Bakkafrost P/F's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Bakkafrost P/F's Operating Margin % falls into.



Bakkafrost P/F 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.

Bakkafrost P/F's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=182.786 / 1044.778
=17.50 %

Bakkafrost P/F's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=74.667 / 228.522
=32.67 %

* 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.


Bakkafrost P/F  (OTCPK:BKFKF) 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.


Bakkafrost P/F Operating Margin % Related Terms

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Bakkafrost P/F (Bakkafrost P/F) Business Description

Address
Bakkavegur 9, P.O. Box 221, Glyvrar, FRO, FO-625
Bakkafrost P/F is a salmon producer based in the Faroe Islands. The company's activities include farming, harvesting, packaging, processing, and sales. The salmon products consist of whole salmon, frozen salmon portions, salmon heads, backbones, belly flaps, and salmon skin. Bakkafrost divides its operations into three segments. The fish farming segment involves the breeding, processing, sales, and distribution of salmon and contributes to the majority of the group revenue. The value-added products segment produces skinless and boneless portions of salmon. The fishmeal, oil and feed segment is engaged in the production and sale of fishmeal, fish oil and fish feed through Bakkafrost's subsidiary Havsbrun.

Bakkafrost P/F (Bakkafrost P/F) Headlines

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