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Character Group (The) (LSE:CCT) Operating Margin % : 3.60% (As of Feb. 2024)


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What is Character Group (The) Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Character Group (The)'s Operating Income for the six months ended in Feb. 2024 was £2.1 Mil. Character Group (The)'s Revenue for the six months ended in Feb. 2024 was £57.6 Mil. Therefore, Character Group (The)'s Operating Margin % for the quarter that ended in Feb. 2024 was 3.60%.

Warning Sign:

Character Group (The) PLC operating margin has been in a 5-year decline. The average rate of decline per year is -14.2%.

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

LSE:CCT' s Operating Margin % Range Over the Past 10 Years
Min: 4.32   Med: 8.82   Max: 12.6
Current: 5.51


LSE:CCT's Operating Margin % is ranked worse than
62.93% of 820 companies
in the Travel & Leisure industry
Industry Median: 8.27 vs LSE:CCT: 5.51

Character Group (The)'s 5-Year Average Operating Margin % Growth Rate was -14.20% per year.

Character Group (The)'s Operating Income for the six months ended in Feb. 2024 was £2.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 was £6.7 Mil.


Character Group (The) Operating Margin % Historical Data

The historical data trend for Character Group (The)'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.

Character Group (The) Operating Margin % Chart

Character Group (The) Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.62 4.92 8.02 6.48 4.32

Character Group (The) Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 7.20 5.72 1.09 7.21 3.60

Competitive Comparison of Character Group (The)'s Operating Margin %

For the Leisure subindustry, Character Group (The)'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.


Character Group (The)'s Operating Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Character Group (The)'s Operating Margin % distribution charts can be found below:

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



Character Group (The) 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.

Character Group (The)'s Operating Margin % for the fiscal year that ended in Aug. 2023 is calculated as

Operating Margin %=Operating Income (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=5.3 / 122.591
=4.32 %

Character Group (The)'s Operating Margin % for the quarter that ended in Feb. 2024 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=2.076 / 57.615
=3.60 %

* 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.


Character Group (The)  (LSE:CCT) 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.


Character Group (The) Operating Margin % Related Terms

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Character Group (The) (LSE:CCT) Business Description

Traded in Other Exchanges
Address
86-88 Coombe Road, 2nd Floor, New Malden, Surrey, GBR, KT3 4QS
Character Group (The) PLC designs, manufactures, and distributes various games, and gifts based on television and cartoon characters. The company operates in the United Kingdom and other parts of the World under the brand name Peppa Pig, Bluey, Pokemon, My Little Pony, and others. Its geographical segments include the United Kingdom, the Far East, and Scandinavia. The company earns maximu revenue from Far East.