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Tomra Systems ASA (STU:TMRA) Operating Margin %

: 4.20% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Tomra Systems ASA's Operating Income for the three months ended in Dec. 2023 was €15 Mil. Tomra Systems ASA's Revenue for the three months ended in Dec. 2023 was €358 Mil. Therefore, Tomra Systems ASA's Operating Margin % for the quarter that ended in Dec. 2023 was 4.20%.

Warning Sign:

Tomra Systems ASA operating margin has been in a 5-year decline. The average rate of decline per year is -6.6%.

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

STU:TMRA' s Operating Margin % Range Over the Past 10 Years
Min: 7.94   Med: 12.84   Max: 14.94
Current: 7.95


STU:TMRA's Operating Margin % is ranked better than
53.02% of 232 companies
in the Waste Management industry
Industry Median: 7.335 vs STU:TMRA: 7.95

Tomra Systems ASA's 5-Year Average Operating Margin % Growth Rate was -6.60% per year.

Tomra Systems ASA's Operating Income for the three months ended in Dec. 2023 was €15 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was €102 Mil.


Tomra Systems ASA Operating Margin % Historical Data

The historical data trend for Tomra Systems ASA'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.

Tomra Systems ASA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.60 13.08 14.23 11.90 7.94

Tomra Systems ASA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 13.31 7.23 12.69 7.77 4.20

Competitive Comparison

For the Waste Management subindustry, Tomra Systems ASA'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.


Tomra Systems ASA Operating Margin % Distribution

For the Waste Management industry and Industrials sector, Tomra Systems ASA's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Tomra Systems ASA's Operating Margin % falls into.



Tomra Systems ASA 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.

Tomra Systems ASA'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 )
=101.901 / 1282.665
=7.94 %

Tomra Systems ASA'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 )
=15.064 / 358.398
=4.20 %

* 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.


Tomra Systems ASA  (STU:TMRA) 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.


Tomra Systems ASA Operating Margin % Related Terms

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Tomra Systems ASA (STU:TMRA) Business Description

Address
Drengsrudhagen 2, Asker, NOR, 1385
Tomra Systems ASA provides sorting and recycling solutions to better equip customers for handling waste. It operates two primary business segments: collection solutions (a majority of revenue) and sorting solutions. The company produces, sells, and services automated recycling systems, including data administration systems that monitor the volume of collected materials. It manufactures reverse vending machines to collect empty beverage containers. The empty beverage containers are gathered and processed into reusable molds. Tomra services the machines and provides replacement parts to ensure optimal performance. Food sorting solutions inspect individual pieces and stop resources from going to waste. The majority of revenue comes from customers in Europe, North America and Rest of World.

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