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China Everbright Water (SGX:U9E) Operating Margin % : 29.52% (As of Dec. 2023)


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What is China Everbright Water Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. China Everbright Water's Operating Income for the six months ended in Dec. 2023 was S$182 Mil. China Everbright Water's Revenue for the six months ended in Dec. 2023 was S$618 Mil. Therefore, China Everbright Water's Operating Margin % for the quarter that ended in Dec. 2023 was 29.52%.

Good Sign:

China Everbright Water Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

SGX:U9E' s Operating Margin % Range Over the Past 10 Years
Min: -4.28   Med: 29.33   Max: 38.72
Current: 33.33


SGX:U9E's Operating Margin % is ranked better than
91.37% of 510 companies
in the Utilities - Regulated industry
Industry Median: 12.435 vs SGX:U9E: 33.33

China Everbright Water's 5-Year Average Operating Margin % Growth Rate was 3.10% per year.

China Everbright Water's Operating Income for the six months ended in Dec. 2023 was S$182 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was S$382 Mil.


China Everbright Water Operating Margin % Historical Data

The historical data trend for China Everbright Water'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.

China Everbright Water Operating Margin % Chart

China Everbright Water Annual Data
Trend Jun14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.93 32.64 31.68 28.10 33.31

China Everbright Water Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 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 31.28 26.51 29.80 37.77 29.52

Competitive Comparison of China Everbright Water's Operating Margin %

For the Utilities - Regulated Water subindustry, China Everbright Water'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.


China Everbright Water's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, China Everbright Water's Operating Margin % distribution charts can be found below:

* The bar in red indicates where China Everbright Water's Operating Margin % falls into.



China Everbright Water 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.

China Everbright Water'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 )
=380.969 / 1143.603
=33.31 %

China Everbright Water'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 )
=182.432 / 617.913
=29.52 %

* 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.


China Everbright Water  (SGX:U9E) 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.


China Everbright Water Operating Margin % Related Terms

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China Everbright Water (SGX:U9E) Business Description

Traded in Other Exchanges
Address
Number 1003 Shennan Avenue, 26th Floor, Block A, Oriental Xintiandi Plaza, Futian District, Shenzhen, CHN, 518000
China Everbright Water Ltd provides water supply, waste water treatment, sludge treatment, and other environmental services. It designs, constructs, and operates water treatment plants, and extracts energy from water discharged by the plants to power air-conditioning for various buildings. Concession arrangements from various Chinese government authorities span multiple years, and allow the company to operate plants and charge users a fee for consumption. Under the arrangements, China Everbright is obligated to maintain the plants, and receives annual payments from the grantors. Raw materials and consumables are utilized by experienced technicians to repair and maintain facilities. Majority of sales and assets are generated and located in China.

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