Operating Margin % is calculated as Operating Income divided by its Revenue. Valmont Industries's Operating Income for the
three
months ended in Dec. 2023 was $95 Mil. Valmont Industries's Revenue for the
three
months ended in Dec. 2023 was $1,016 Mil. Therefore, Valmont Industries's Operating Margin % for the quarter that ended in Dec. 2023 was 9.31%.
Good Sign:
Valmont Industries Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Valmont Industries's Operating Margin % or its related term are showing as below:
VMI'
s Operating Margin % Range Over the Past 10 Years
Min: 6.63 Med: 9.06 Max: 11.45
Current: 11.2
VMI's Operating Margin % is ranked better than 72.3% of 509
companies
in the Conglomerates industry
Industry Median: 5.43
vs VMI: 11.20
Valmont Industries's 5-Year Average Operating Margin % Growth Rate was 6.20% per year.
Valmont Industries's Operating Income for the
three
months ended in Dec. 2023 was $95 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $468 Mil.
Valmont Industries Operating Margin % Historical Data
The historical data trend for Valmont Industries'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.
Competitive Comparison of Valmont Industries's Operating Margin %
For the Conglomerates subindustry, Valmont Industries'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.
Valmont Industries's Operating Margin % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Valmont Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Valmont Industries's Operating Margin % falls into.
Valmont Industries 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.
Valmont Industries's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
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 Nokias 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.
Valmont Industries Operating Margin % Related Terms
Thank you for viewing the detailed overview of Valmont Industries's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Valmont Industries (Valmont Industries) Business Description
Valmont began in 1946 when founder, Robert B. Daugherty, combined his $5,000 savings with a wholehearted belief that business could and should be done better. From those modest beginnings, the company grew into a global leader, designing and manufacturing highly engineered products and services that support infrastructure development and agricultural productivity. Two primary business segments comprise Valmont: Agriculture and Infrastructure. Valmont have 85 manufacturing facilities in 22 countries, and do business in more than 100 countries across six continents.
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