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Bestore Co (SHSE:603719) Operating Margin % : 3.65% (As of Mar. 2024)


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What is Bestore Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Bestore Co's Operating Income for the three months ended in Mar. 2024 was ¥89 Mil. Bestore Co's Revenue for the three months ended in Mar. 2024 was ¥2,451 Mil. Therefore, Bestore Co's Operating Margin % for the quarter that ended in Mar. 2024 was 3.65%.

Warning Sign:

Bestore Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -11.6%.

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

SHSE:603719' s Operating Margin % Range Over the Past 10 Years
Min: 1.51   Med: 3.81   Max: 6.25
Current: 1.51


SHSE:603719's Operating Margin % is ranked worse than
69.46% of 1860 companies
in the Consumer Packaged Goods industry
Industry Median: 5.245 vs SHSE:603719: 1.51

Bestore Co's 5-Year Average Operating Margin % Growth Rate was -11.60% per year.

Bestore Co's Operating Income for the three months ended in Mar. 2024 was ¥89 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ¥122 Mil.


Bestore Co Operating Margin % Historical Data

The historical data trend for Bestore 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.

Bestore Co Operating Margin % Chart

Bestore Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only 6.25 5.95 3.81 4.93 2.83

Bestore Co 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 8.15 3.29 0.19 -1.16 3.65

Competitive Comparison of Bestore Co's Operating Margin %

For the Packaged Foods subindustry, Bestore 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.


Bestore Co's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Bestore Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Bestore Co's Operating Margin % falls into.



Bestore 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.

Bestore 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 )
=227.402 / 8045.889
=2.83 %

Bestore Co'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 )
=89.439 / 2451.352
=3.65 %

* 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.


Bestore Co  (SHSE:603719) 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.


Bestore Co Operating Margin % Related Terms

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Bestore Co (SHSE:603719) Business Description

Traded in Other Exchanges
N/A
Address
No. 8 Zaomaling Innovation Avenue, Dongxihu District, Hubei Province, Wuhan, CHN, 430000
Bestore Co Ltd is engaged in the procurement, sales and operation of snack foods. The company's products include bulk food including refrigerated frozen food, bulk cooked food; pre-packaged food including refrigerated frozen food; special food such as health products, infant formula milk powder, other infant formula; vegetables; dried fruits; flowers; daily necessities; agricultural products; agricultural and sideline products; hot foods including semi-finished foods; pastry foods including decorating foods; production and sale of homemade beverages including homemade fresh milk beverages; cold foods; raw foods including meat products, raw seafood foods; food packaging and processing; storage services, and venue rental.

Bestore Co (SHSE:603719) Headlines

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