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Concentric AB (OSTO:COIC) Operating Margin % : 11.76% (As of Mar. 2024)


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What is Concentric AB Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Concentric AB's Operating Income for the three months ended in Mar. 2024 was kr118 Mil. Concentric AB's Revenue for the three months ended in Mar. 2024 was kr1,003 Mil. Therefore, Concentric AB's Operating Margin % for the quarter that ended in Mar. 2024 was 11.76%.

Warning Sign:

Concentric AB operating margin has been in a 5-year decline. The average rate of decline per year is -8.4%.

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

OSTO:COIC' s Operating Margin % Range Over the Past 10 Years
Min: 11.71   Med: 15.38   Max: 19.58
Current: 11.71


OSTO:COIC's Operating Margin % is ranked better than
71.76% of 2975 companies
in the Industrial Products industry
Industry Median: 6.93 vs OSTO:COIC: 11.71

Concentric AB's 5-Year Average Operating Margin % Growth Rate was -8.40% per year.

Concentric AB's Operating Income for the three months ended in Mar. 2024 was kr118 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was kr478 Mil.


Concentric AB Operating Margin % Historical Data

The historical data trend for Concentric AB'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.

Concentric AB Operating Margin % Chart

Concentric AB 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 19.58 14.78 15.98 14.40 12.29

Concentric AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 13.93 13.30 11.79 9.74 11.76

Competitive Comparison of Concentric AB's Operating Margin %

For the Specialty Industrial Machinery subindustry, Concentric AB'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.


Concentric AB's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Concentric AB's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Concentric AB's Operating Margin % falls into.



Concentric AB 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.

Concentric AB'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 )
=517 / 4205
=12.29 %

Concentric AB's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=118 / 1003
=11.76 %

* 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.


Concentric AB  (OSTO:COIC) 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.


Concentric AB Operating Margin % Related Terms

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Concentric AB (OSTO:COIC) Business Description

Traded in Other Exchanges
Address
PO Box 5058, Stockholm, SWE, 102 42
Concentric AB is a Sweden-based company active in designing, development, and manufacturing of hydraulic and engine applications for Agriculture Machinery, Construction equipment, Trucks and Industrial applications. It offers solutions to the manufacturers of construction machinery, diesel engines and large trucks. It offers products related to fuel efficiency and reduced emissions. Its products include oil pumps, transmission pumps, coolant pumps, water pumps, compressor pumps, variable flow oil, Licos friction clutches, belt drives, gear pumps and motors, electro-hydraulic steering units, hydraulic power packs, and other products. The company has business segments in two product groups, namely engine products and hydraulic products.

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