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Altus Group (TSX:AIF) Operating Margin % : 6.97% (As of Dec. 2023)


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What is Altus Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Altus Group's Operating Income for the three months ended in Dec. 2023 was C$13.3 Mil. Altus Group's Revenue for the three months ended in Dec. 2023 was C$191.6 Mil. Therefore, Altus Group's Operating Margin % for the quarter that ended in Dec. 2023 was 6.97%.

Good Sign:

Altus Group Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

TSX:AIF' s Operating Margin % Range Over the Past 10 Years
Min: 2.22   Med: 7.51   Max: 12.09
Current: 6.32


TSX:AIF's Operating Margin % is ranked worse than
64.39% of 1783 companies
in the Real Estate industry
Industry Median: 13.27 vs TSX:AIF: 6.32

Altus Group's 5-Year Average Operating Margin % Growth Rate was 14.60% per year.

Altus Group's Operating Income for the three months ended in Dec. 2023 was C$13.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was C$48.8 Mil.

Warning Sign:

Altus Group Ltd has recorded a loss in operating income at least once over the past 3 years.


Altus Group Operating Margin % Historical Data

The historical data trend for Altus Group'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.

Altus Group Operating Margin % Chart

Altus Group 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 7.56 9.77 7.45 7.08 6.32

Altus Group 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 8.99 2.06 10.10 5.83 6.97

Competitive Comparison of Altus Group's Operating Margin %

For the Real Estate Services subindustry, Altus Group'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.


Altus Group's Operating Margin % Distribution in the Real Estate Industry

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

* The bar in red indicates where Altus Group's Operating Margin % falls into.



Altus Group 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.

Altus Group'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 )
=48.806 / 772.843
=6.32 %

Altus Group'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 )
=13.349 / 191.574
=6.97 %

* 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.


Altus Group  (TSX:AIF) 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.


Altus Group Operating Margin % Related Terms

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Altus Group (TSX:AIF) Business Description

Traded in Other Exchanges
Address
33 Yonge Street, Suite 500, Toronto, ON, CAN, M5E 1G4
Altus Group Ltd operates in the Canadian real estate sector. Its services can be summed up as advisory services, software and data solutions to the property and real estate industry. The company has three reportable segments namely Property Tax, Analytics; and under CRE Consulting services, and Appraisals and Development Advisory. It generates maximum revenue from the Analytics; and under CRE Consulting services segment. A part of its revenue is also derived from the United States, Europe, and the Asia Pacific.