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Dubai Electricity & Water Authority PJSC (DFM:DEWA) Operating Margin % : 19.81% (As of Dec. 2023)


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What is Dubai Electricity & Water Authority PJSC Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Dubai Electricity & Water Authority PJSC's Operating Income for the three months ended in Dec. 2023 was د.إ1,390 Mil. Dubai Electricity & Water Authority PJSC's Revenue for the three months ended in Dec. 2023 was د.إ7,017 Mil. Therefore, Dubai Electricity & Water Authority PJSC's Operating Margin % for the quarter that ended in Dec. 2023 was 19.81%.

Warning Sign:

Dubai Electricity & Water Authority PJSC operating margin has been in a 5-year decline. The average rate of decline per year is -2%.

The historical rank and industry rank for Dubai Electricity & Water Authority PJSC's Operating Margin % or its related term are showing as below:

DFM:DEWA' s Operating Margin % Range Over the Past 10 Years
Min: 25.05   Med: 31.71   Max: 38.88
Current: 28.55


DFM:DEWA's Operating Margin % is ranked better than
85.91% of 511 companies
in the Utilities - Regulated industry
Industry Median: 12.65 vs DFM:DEWA: 28.55

Dubai Electricity & Water Authority PJSC's 5-Year Average Operating Margin % Growth Rate was -2.00% per year.

Dubai Electricity & Water Authority PJSC's Operating Income for the three months ended in Dec. 2023 was د.إ1,390 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was د.إ8,327 Mil.


Dubai Electricity & Water Authority PJSC Operating Margin % Historical Data

The historical data trend for Dubai Electricity & Water Authority PJSC'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.

Dubai Electricity & Water Authority PJSC Operating Margin % Chart

Dubai Electricity & Water Authority PJSC Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.59 25.05 26.40 29.52 28.57

Dubai Electricity & Water Authority PJSC Quarterly Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 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 24.09 16.43 31.01 40.14 19.81

Competitive Comparison of Dubai Electricity & Water Authority PJSC's Operating Margin %

For the Utilities - Diversified subindustry, Dubai Electricity & Water Authority PJSC'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.


Dubai Electricity & Water Authority PJSC's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Dubai Electricity & Water Authority PJSC's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Dubai Electricity & Water Authority PJSC's Operating Margin % falls into.



Dubai Electricity & Water Authority PJSC 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.

Dubai Electricity & Water Authority PJSC'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 )
=8336.066 / 29178.009
=28.57 %

Dubai Electricity & Water Authority PJSC'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 )
=1390.24 / 7017.214
=19.81 %

* 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.


Dubai Electricity & Water Authority PJSC  (DFM:DEWA) 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.


Dubai Electricity & Water Authority PJSC Operating Margin % Related Terms

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Dubai Electricity & Water Authority PJSC (DFM:DEWA) Business Description

Traded in Other Exchanges
N/A
Address
Sheikh Rashid Road, Umm Hurair 2, P.O. Box 564, Near Wafi Mall, Happiness Center Zaabeel East, Dubai, ARE
Dubai Electricity & Water Authority PJSC is engaged in water desalination and distribution and the generation, transmission and distribution of electricity, throughout the Emirate of Dubai. The group is organised into four segments: Electricity, Water, District cooling charges, and others. It generates maximum revenue from the Electricity segment.

Dubai Electricity & Water Authority PJSC (DFM:DEWA) Headlines

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