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BKW AG (XSWX:BKW) Operating Margin % : 12.91% (As of Dec. 2023)


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What is BKW AG Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. BKW AG's Operating Income for the six months ended in Dec. 2023 was CHF272 Mil. BKW AG's Revenue for the six months ended in Dec. 2023 was CHF2,104 Mil. Therefore, BKW AG's Operating Margin % for the quarter that ended in Dec. 2023 was 12.91%.

Good Sign:

BKW AG operating margin is expanding. Margin expansion is usually a good sign.

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

XSWX:BKW' s Operating Margin % Range Over the Past 10 Years
Min: 10.02   Med: 15.02   Max: 19.26
Current: 15.18


XSWX:BKW's Operating Margin % is ranked worse than
51.57% of 413 companies
in the Utilities - Independent Power Producers industry
Industry Median: 15.96 vs XSWX:BKW: 15.18

BKW AG's 5-Year Average Operating Margin % Growth Rate was 0.50% per year.

BKW AG's Operating Income for the six months ended in Dec. 2023 was CHF272 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was CHF673 Mil.


BKW AG Operating Margin % Historical Data

The historical data trend for BKW AG'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.

BKW AG Operating Margin % Chart

BKW AG 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 15.59 14.85 10.02 19.26 15.18

BKW AG 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 7.81 13.83 23.43 17.24 12.91

Competitive Comparison of BKW AG's Operating Margin %

For the Utilities - Renewable subindustry, BKW AG'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.


BKW AG's Operating Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, BKW AG's Operating Margin % distribution charts can be found below:

* The bar in red indicates where BKW AG's Operating Margin % falls into.



BKW AG 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.

BKW AG'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 )
=673 / 4432.7
=15.18 %

BKW AG'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 )
=271.5 / 2103.7
=12.91 %

* 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.


BKW AG  (XSWX:BKW) 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.


BKW AG Operating Margin % Related Terms

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BKW AG (XSWX:BKW) Business Description

Traded in Other Exchanges
Address
Viktoriaplatz 2, Bern, CHE, CH-3013
BKW AG is an electric utility company in which the Swiss state of Bern holds a majority stake. The company segments its operations into energy, grid, and services businesses. The energy division builds, operates, and maintains the company's European power plants. While BKW controls a portfolio of wind, hydroelectric, gas, coal, and nuclear facilities, its wind power sites are responsible for most of its total energy generation. The majority of BKW's revenue comes from its energy division in the form of electricity sales to the broader European market and other power plants. The company's networks division, which builds and operates electrical distribution grids for customers outside of its primary markets of Switzerland and Italy, also represents a substantial revenue stream.

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