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Pactiv Evergreen (Pactiv Evergreen) Operating Margin % : 9.42% (As of Dec. 2023)


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What is Pactiv Evergreen Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Pactiv Evergreen's Operating Income for the three months ended in Dec. 2023 was $120 Mil. Pactiv Evergreen's Revenue for the three months ended in Dec. 2023 was $1,274 Mil. Therefore, Pactiv Evergreen's Operating Margin % for the quarter that ended in Dec. 2023 was 9.42%.

Warning Sign:

Pactiv Evergreen Inc operating margin has been in a 5-year decline. The average rate of decline per year is -13.7%.

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

PTVE' s Operating Margin % Range Over the Past 10 Years
Min: 1.99   Med: 7.71   Max: 12.29
Current: 3.58


PTVE's Operating Margin % is ranked worse than
67.8% of 382 companies
in the Packaging & Containers industry
Industry Median: 5.97 vs PTVE: 3.58

Pactiv Evergreen's 5-Year Average Operating Margin % Growth Rate was -13.70% per year.

Pactiv Evergreen's Operating Income for the three months ended in Dec. 2023 was $120 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $197 Mil.


Pactiv Evergreen Operating Margin % Historical Data

The historical data trend for Pactiv Evergreen'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.

Pactiv Evergreen Operating Margin % Chart

Pactiv Evergreen 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 7.15 4.29 1.99 6.66 3.58

Pactiv Evergreen 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 5.22 -1.05 -3.65 10.44 9.42

Competitive Comparison of Pactiv Evergreen's Operating Margin %

For the Packaging & Containers subindustry, Pactiv Evergreen'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.


Pactiv Evergreen's Operating Margin % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Pactiv Evergreen's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Pactiv Evergreen's Operating Margin % falls into.



Pactiv Evergreen 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.

Pactiv Evergreen'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 )
=197 / 5510
=3.58 %

Pactiv Evergreen'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 )
=120 / 1274
=9.42 %

* 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.


Pactiv Evergreen  (NAS:PTVE) 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.


Pactiv Evergreen Operating Margin % Related Terms

Thank you for viewing the detailed overview of Pactiv Evergreen's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Pactiv Evergreen (Pactiv Evergreen) Business Description

Traded in Other Exchanges
Address
1900 West Field Court, Lake Forest, IL, USA, 60045
Pactiv Evergreen Inc is engaged in the business of manufacturing and distributing fresh foodservice and food merchandising products and fresh beverage cartons. It operates in three segments: Foodservice, Food Merchandising, and Beverage Merchandising. These segments manufacture a broad range of products such as food containers, drinkware, tableware, service ware, ready-to-eat food containers, clear rigid-display containers, trays for meat and poultry, molded fiber egg cartons, printed cartons, spouts & filling machines, and other products. The company's geographical segments are the United States, the Rest of North America, and Others, of which the vast majority of its revenue comes from the United States.
Executives
Allen Hugli director C/O RANK GROUP, LEVEL II, 148 QUAY ST, AUCKLAND Q2 00000
Duncan Hawkesby director C/O PACTIV EVERGREEN INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045
Tim A. Levenda officer: President, Foodservice 1900 W. FIELD COURT, LAKE FOREST IL 60045
Jonathan Baksht officer: Chief Financial Officer 5847 SAN FELIPE, SUITE 3300, HOUSTON TX 77057
Eric Wulf officer: President, Food Merchandising 1900 W. FIELD COURT, LAKE FOREST IL 60045
Chandra J Mitchell officer: Chief Legal Officer & Sec. C/O 7 ACQUISITION CORPORATION, 750 EAST MAIN STREET, SUITE 600, STAMFORD CT 06902
Douglas Owenby officer: Chief Operations Officer C/O PACTIV EVERGREEN INC, 1900 W FIELD COURT, LAKE FOREST IL 60045
Byron Jason Racki officer: Pres., Beverage Merchandising 3460 PRESTON RIDGE ROAD, SUITE 600, ALPHARETTA GA 30005
Michael Jack King director 1900 W. FIELD COURT, LAKE FOREST IL 60045
Rolf Stangl director 1900 W. FIELD COURT, LAKE FOREST IL 60045
John P. Rooney officer: Pres, Beverage Merchandising 1900 W. FIELD COURT, LAKE FOREST IL 60045
Michael Ragen officer: COO and CFO 1900 W. FIELD COURT, LAKE FOREST IL 60045
Jonathan D Rich director 1144 EAST MARKET STREET, AKRON OH 44316-0001
John T. Mcgrath director, officer: Chief Executive Officer 1900 W. FIELD COURT, LAKE FOREST IL 60045
Felicia D Thornton director 250 PARKCENTER BLVD PO BOX 20, BOISE ID 83726

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