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Paragon REIT (SGX:SK6U) Operating Margin % : 65.59% (As of Dec. 2023)


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What is Paragon REIT Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Paragon REIT's Operating Income for the six months ended in Dec. 2023 was S$95.7 Mil. Paragon REIT's Revenue for the six months ended in Dec. 2023 was S$145.8 Mil. Therefore, Paragon REIT's Operating Margin % for the quarter that ended in Dec. 2023 was 65.59%.

Warning Sign:

Paragon REIT operating margin has been in a 5-year decline. The average rate of decline per year is -1.6%.

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

SGX:SK6U' s Operating Margin % Range Over the Past 10 Years
Min: 63.95   Med: 66.61   Max: 70.41
Current: 65.14


SGX:SK6U's Operating Margin % is ranked better than
70.5% of 695 companies
in the REITs industry
Industry Median: 51.83 vs SGX:SK6U: 65.14

Paragon REIT's 5-Year Average Operating Margin % Growth Rate was -1.60% per year.

Paragon REIT's Operating Income for the six months ended in Dec. 2023 was S$95.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was S$188.2 Mil.


Paragon REIT Operating Margin % Historical Data

The historical data trend for Paragon REIT'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.

Paragon REIT Operating Margin % Chart

Paragon REIT Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 69.74 65.55 63.95 65.32 65.14

Paragon REIT Semi-Annual Data
Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Dec22 Jun23 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 62.32 64.98 65.71 64.69 65.59

Competitive Comparison of Paragon REIT's Operating Margin %

For the REIT - Retail subindustry, Paragon REIT'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.


Paragon REIT's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Paragon REIT's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Paragon REIT's Operating Margin % falls into.



Paragon REIT 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.

Paragon REIT'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 )
=188.219 / 288.926
=65.14 %

Paragon REIT'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 )
=95.66 / 145.842
=65.59 %

* 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.


Paragon REIT  (SGX:SK6U) 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.


Paragon REIT Operating Margin % Related Terms

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Paragon REIT (SGX:SK6U) Business Description

Traded in Other Exchanges
N/A
Address
79 Robinson Road, CapitaSky, Bridge+, Singapore, SGP, 068897
Paragon REIT is a real estate investment trust which focuses on retail properties in Singapore and other Asia Pacific regions. The trust primarily comprises upscale retail malls and shopping centres.

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