GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Empire Co Ltd (OTCPK:EMLAF) » Definitions » Operating Margin %

Empire Co (Empire Co) Operating Margin %

: 3.02% (As of Jan. 2024)
View and export this data going back to . Start your Free Trial

Operating Margin % is calculated as Operating Income divided by its Revenue. Empire Co's Operating Income for the three months ended in Jan. 2024 was $169 Mil. Empire Co's Revenue for the three months ended in Jan. 2024 was $5,583 Mil. Therefore, Empire Co's Operating Margin % for the quarter that ended in Jan. 2024 was 3.02%.

Good Sign:

Empire Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

EMLAF' s Operating Margin % Range Over the Past 10 Years
Min: 0.87   Med: 2.25   Max: 4.23
Current: 3.51


EMLAF's Operating Margin % is ranked better than
53.35% of 313 companies
in the Retail - Defensive industry
Industry Median: 3.27 vs EMLAF: 3.51

Empire Co's 5-Year Average Operating Margin % Growth Rate was 30.30% per year.

Empire Co's Operating Income for the three months ended in Jan. 2024 was $169 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $803 Mil.


Empire Co Operating Margin % Historical Data

The historical data trend for Empire Co'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.

Empire Co Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.97 3.65 4.23 3.92 3.56

Empire Co Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 2.75 3.57 4.13 3.28 3.02

Competitive Comparison

For the Grocery Stores subindustry, Empire Co'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.


Empire Co Operating Margin % Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Empire Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Empire Co's Operating Margin % falls into.



Empire Co 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.

Empire Co's Operating Margin % for the fiscal year that ended in Apr. 2023 is calculated as

Operating Margin %=Operating Income (A: Apr. 2023 ) / Revenue (A: Apr. 2023 )
=803.842 / 22603.159
=3.56 %

Empire Co's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=168.889 / 5583.253
=3.02 %

* 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.


Empire Co  (OTCPK:EMLAF) 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.


Empire Co Operating Margin % Related Terms

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


Empire Co (Empire Co) Business Description

Traded in Other Exchanges
Address
115 King Street, Stellarton, NS, CAN, B0K 1S0
Empire Co Ltd key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire's subsidiary Sobeys and represents nearly all of the company's income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton's Drug Stores, and multiple retail fuel locations. The company's investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership.

Empire Co (Empire Co) Headlines

From GuruFocus

Empire Company: Canadian Grocer Paying Dividends Since 1963

By Ben Reynolds Ben Reynolds 09-26-2016

Empire Co Ltd's Dividend Analysis

By GuruFocus Research 10-11-2023

Empire Co Ltd's Dividend Analysis

By GuruFocus Research 01-11-2024

Gurus Hold Retailers at 10-Year Low P/S

By Sally Jones Sally Jones 12-29-2013