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Sitowise Group (OHEL:SITOWS) Operating Margin % : 3.79% (As of Mar. 2024)


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What is Sitowise Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sitowise Group's Operating Income for the three months ended in Mar. 2024 was €2.0 Mil. Sitowise Group's Revenue for the three months ended in Mar. 2024 was €51.5 Mil. Therefore, Sitowise Group's Operating Margin % for the quarter that ended in Mar. 2024 was 3.79%.

Warning Sign:

Sitowise Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -9.9%.

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

OHEL:SITOWS' s Operating Margin % Range Over the Past 10 Years
Min: 3.96   Med: 8.29   Max: 10.98
Current: 3.96


OHEL:SITOWS's Operating Margin % is ranked worse than
56.91% of 1650 companies
in the Construction industry
Industry Median: 5.125 vs OHEL:SITOWS: 3.96

Sitowise Group's 5-Year Average Operating Margin % Growth Rate was -9.90% per year.

Sitowise Group's Operating Income for the three months ended in Mar. 2024 was €2.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was €8.2 Mil.


Sitowise Group Operating Margin % Historical Data

The historical data trend for Sitowise Group'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.

Sitowise Group Operating Margin % Chart

Sitowise Group Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial 7.44 10.98 9.13 6.49 5.58

Sitowise Group Quarterly Data
Dec18 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 9.79 6.40 4.97 0.63 3.79

Competitive Comparison of Sitowise Group's Operating Margin %

For the Engineering & Construction subindustry, Sitowise Group'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.


Sitowise Group's Operating Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Sitowise Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sitowise Group's Operating Margin % falls into.



Sitowise Group 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.

Sitowise Group'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 )
=11.763 / 210.91
=5.58 %

Sitowise Group'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 )
=1.953 / 51.483
=3.79 %

* 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.


Sitowise Group  (OHEL:SITOWS) 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.


Sitowise Group Operating Margin % Related Terms

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Sitowise Group (OHEL:SITOWS) Business Description

Traded in Other Exchanges
Address
Linnoitustie 6 D, Espoo, FIN, 02600
Sitowise Group PLC is a Nordic expert in the built environment that offers sustainable design and consulting services. The company operates in various size projects to enable more responsible and smarter urban development as well as smooth transportation. Sitowise offers its services in Buildings, Infrastructure and Digital Solution areas.

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