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Samsung Electro-Mechanics Co (XKRX:009150) Operating Margin %

: 4.79% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Samsung Electro-Mechanics Co's Operating Income for the three months ended in Dec. 2023 was ₩110,447 Mil. Samsung Electro-Mechanics Co's Revenue for the three months ended in Dec. 2023 was ₩2,306,222 Mil. Therefore, Samsung Electro-Mechanics Co's Operating Margin % for the quarter that ended in Dec. 2023 was 4.79%.

Warning Sign:

Samsung Electro-Mechanics Co Ltd 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 Samsung Electro-Mechanics Co's Operating Margin % or its related term are showing as below:

XKRX:009150' s Operating Margin % Range Over the Past 10 Years
Min: 0.4   Med: 8.4   Max: 15.37
Current: 7.18


XKRX:009150's Operating Margin % is ranked better than
67.52% of 2463 companies
in the Hardware industry
Industry Median: 3.64 vs XKRX:009150: 7.18

Samsung Electro-Mechanics Co's 5-Year Average Operating Margin % Growth Rate was -6.60% per year.

Samsung Electro-Mechanics Co's Operating Income for the three months ended in Dec. 2023 was ₩110,447 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ₩639,798 Mil.


Samsung Electro-Mechanics Co Operating Margin % Historical Data

The historical data trend for Samsung Electro-Mechanics Co'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 9.61 [6] => 11.78 [7] => 15.37 [8] => 12.55 [9] => 7.18 )
Samsung Electro-Mechanics Co 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 9.61 11.78 15.37 12.55 7.18

Samsung Electro-Mechanics Co 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 5.15 6.93 9.24 7.79 4.79

Competitive Comparison

For the Electronic Components subindustry, Samsung Electro-Mechanics Co'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.


Samsung Electro-Mechanics Co Operating Margin % Distribution

For the Hardware industry and Technology sector, Samsung Electro-Mechanics Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Samsung Electro-Mechanics Co's Operating Margin % falls into.



Samsung Electro-Mechanics Co 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.

Samsung Electro-Mechanics Co'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 )
=639798.495 / 8909448.484
=7.18 %

Samsung Electro-Mechanics Co'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 )
=110447.02 / 2306222.295
=4.79 %

* 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.


Samsung Electro-Mechanics Co  (XKRX:009150) 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.


Samsung Electro-Mechanics Co Operating Margin % Related Terms

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Samsung Electro-Mechanics Co (XKRX:009150) Business Description

Traded in Other Exchanges
Address
Samsung Seocho-Tower 1320-10, 21st floor, Seocho 2-Dong, Seoul, KOR, 135-857
Samsung Electro-Mechanics, or Semco, manufactures various electronic components. The company operates three major segments; component solution, module solution, and substrate solution, and its main products are multilayer ceramic capacitors, or MLCCs, camera modules, semiconductor packages, and printed circuit boards. Semco is the global second MLCC supplier. Samsung Electronics, one of the largest consumer electronics and semiconductor companies, is Semco's largest shareholder.

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