GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » REN-Redes Energeticas Nacionais Sgps SA (XLIS:RENE) » Definitions » Operating Margin %

REN-Redes Energeticas Nacionais Sgps (XLIS:RENE) Operating Margin % : 15.79% (As of Dec. 2023)


View and export this data going back to 2007. Start your Free Trial

What is REN-Redes Energeticas Nacionais Sgps Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. REN-Redes Energeticas Nacionais Sgps's Operating Income for the three months ended in Dec. 2023 was €48.1 Mil. REN-Redes Energeticas Nacionais Sgps's Revenue for the three months ended in Dec. 2023 was €304.5 Mil. Therefore, REN-Redes Energeticas Nacionais Sgps's Operating Margin % for the quarter that ended in Dec. 2023 was 15.79%.

Warning Sign:

REN-Redes Energeticas Nacionais Sgps SA operating margin has been in a 5-year decline. The average rate of decline per year is -6.5%.

The historical rank and industry rank for REN-Redes Energeticas Nacionais Sgps's Operating Margin % or its related term are showing as below:

XLIS:RENE' s Operating Margin % Range Over the Past 10 Years
Min: 25.97   Med: 33.77   Max: 42.4
Current: 25.97


XLIS:RENE's Operating Margin % is ranked better than
82.78% of 511 companies
in the Utilities - Regulated industry
Industry Median: 12.52 vs XLIS:RENE: 25.97

REN-Redes Energeticas Nacionais Sgps's 5-Year Average Operating Margin % Growth Rate was -6.50% per year.

REN-Redes Energeticas Nacionais Sgps's Operating Income for the three months ended in Dec. 2023 was €48.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was €249.5 Mil.


REN-Redes Energeticas Nacionais Sgps Operating Margin % Historical Data

The historical data trend for REN-Redes Energeticas Nacionais Sgps'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.

REN-Redes Energeticas Nacionais Sgps Operating Margin % Chart

REN-Redes Energeticas Nacionais Sgps 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 33.33 31.37 28.10 28.68 26.32

REN-Redes Energeticas Nacionais Sgps Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 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 22.88 33.13 29.75 29.54 15.79

Competitive Comparison of REN-Redes Energeticas Nacionais Sgps's Operating Margin %

For the Utilities - Diversified subindustry, REN-Redes Energeticas Nacionais Sgps'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.


REN-Redes Energeticas Nacionais Sgps's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, REN-Redes Energeticas Nacionais Sgps's Operating Margin % distribution charts can be found below:

* The bar in red indicates where REN-Redes Energeticas Nacionais Sgps's Operating Margin % falls into.



REN-Redes Energeticas Nacionais Sgps 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.

REN-Redes Energeticas Nacionais Sgps'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 )
=249.512 / 947.884
=26.32 %

REN-Redes Energeticas Nacionais Sgps'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 )
=48.098 / 304.535
=15.79 %

* 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.


REN-Redes Energeticas Nacionais Sgps  (XLIS:RENE) 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.


REN-Redes Energeticas Nacionais Sgps Operating Margin % Related Terms

Thank you for viewing the detailed overview of REN-Redes Energeticas Nacionais Sgps's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


REN-Redes Energeticas Nacionais Sgps (XLIS:RENE) Business Description

Traded in Other Exchanges
Address
Avenida Estados Unidos da America, 55, Lisbon, PRT, 1749-061
REN-Redes Energeticas Nacionais Sgps SA is an energy and utilities company designed for the transmission and distributing electricity and natural gas. The company offers services that manage national energy transmission and distribution systems that include the national electric transmission grid (RNT), the national natural gas transportation grid (RNTGN) and the portgás distribution grid, enabling the creation of an Iberian electricity market that will develop the hydrogen corridor in Europe, together with other European TSOs (Enagas, GRTgaz, Terega and OGE).

REN-Redes Energeticas Nacionais Sgps (XLIS:RENE) Headlines