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HORNBACH Holding AG and Co KGaA (XTER:HBH) Operating Margin % : 3.05% (As of Nov. 2023)


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What is HORNBACH Holding AG and Co KGaA Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. HORNBACH Holding AG and Co KGaA's Operating Income for the three months ended in Nov. 2023 was €45 Mil. HORNBACH Holding AG and Co KGaA's Revenue for the three months ended in Nov. 2023 was €1,485 Mil. Therefore, HORNBACH Holding AG and Co KGaA's Operating Margin % for the quarter that ended in Nov. 2023 was 3.05%.

Good Sign:

HORNBACH Holding AG and Co KGaA operating margin is expanding. Margin expansion is usually a good sign.

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

XTER:HBH' s Operating Margin % Range Over the Past 10 Years
Min: 3   Med: 4.52   Max: 6.3
Current: 3.18


XTER:HBH's Operating Margin % is ranked worse than
51.85% of 1107 companies
in the Retail - Cyclical industry
Industry Median: 3.5 vs XTER:HBH: 3.18

HORNBACH Holding AG and Co KGaA's 5-Year Average Operating Margin % Growth Rate was 8.40% per year.

HORNBACH Holding AG and Co KGaA's Operating Income for the three months ended in Nov. 2023 was €45 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 was €197 Mil.


HORNBACH Holding AG and Co KGaA Operating Margin % Historical Data

The historical data trend for HORNBACH Holding AG and Co KGaA'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.

HORNBACH Holding AG and Co KGaA Operating Margin % Chart

HORNBACH Holding AG and Co KGaA Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 4.72 5.84 6.30 4.32

HORNBACH Holding AG and Co KGaA Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
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 3.07 -3.60 6.08 5.31 3.05

Competitive Comparison of HORNBACH Holding AG and Co KGaA's Operating Margin %

For the Home Improvement Retail subindustry, HORNBACH Holding AG and Co KGaA'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.


HORNBACH Holding AG and Co KGaA's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, HORNBACH Holding AG and Co KGaA's Operating Margin % distribution charts can be found below:

* The bar in red indicates where HORNBACH Holding AG and Co KGaA's Operating Margin % falls into.



HORNBACH Holding AG and Co KGaA 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.

HORNBACH Holding AG and Co KGaA's Operating Margin % for the fiscal year that ended in Feb. 2023 is calculated as

Operating Margin %=Operating Income (A: Feb. 2023 ) / Revenue (A: Feb. 2023 )
=270.655 / 6263.133
=4.32 %

HORNBACH Holding AG and Co KGaA's Operating Margin % for the quarter that ended in Nov. 2023 is calculated as

Operating Margin %=Operating Income (Q: Nov. 2023 ) / Revenue (Q: Nov. 2023 )
=45.3 / 1485.2
=3.05 %

* 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.


HORNBACH Holding AG and Co KGaA  (XTER:HBH) 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.


HORNBACH Holding AG and Co KGaA Operating Margin % Related Terms

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HORNBACH Holding AG and Co KGaA (XTER:HBH) Business Description

Traded in Other Exchanges
Address
Le Quartier Hornbach 19, Neustadt an der Weinstrasse, DEU, 67433
HORNBACH Holding AG and Co KGaA and its subsidiaries are involved in the business of Retail and Real estate segments. The company's operating segment include HORNBACH Baumarkt subgroup; HORNBACH Baustoff Union GmbH subgroup and HORNBACH Immobilien AG subgroup. It generates maximum revenue from the HORNBACH Baumarkt subgroup segment. Geographically, it derives a majority of revenue from Germany. Products are structured in the following divisions: Hardware/Electrical, Paint/Wallpaper/Flooring, Construction Materials/Timber/Prefabricated Components, Sanitary/Tiles, and Garden.
Executives
Karin Dohm Board of Directors
Albrecht Hornbach Board of Directors

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