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Hargreaves Services (LSE:HSP) Operating Margin % : 4.63% (As of Nov. 2023)


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What is Hargreaves Services Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Hargreaves Services's Operating Income for the six months ended in Nov. 2023 was £5.1 Mil. Hargreaves Services's Revenue for the six months ended in Nov. 2023 was £110.2 Mil. Therefore, Hargreaves Services's Operating Margin % for the quarter that ended in Nov. 2023 was 4.63%.

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

LSE:HSP' s Operating Margin % Range Over the Past 10 Years
Min: -4.62   Med: -0.26   Max: 6.07
Current: 1.95


LSE:HSP's Operating Margin % is ranked worse than
77.01% of 970 companies
in the Transportation industry
Industry Median: 7.535 vs LSE:HSP: 1.95

Hargreaves Services's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Hargreaves Services's Operating Income for the six months ended in Nov. 2023 was £5.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 was £4.0 Mil.


Hargreaves Services Operating Margin % Historical Data

The historical data trend for Hargreaves Services'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.

Hargreaves Services Operating Margin % Chart

Hargreaves Services Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.62 -1.79 -2.88 2.77 3.25

Hargreaves Services Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 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 1.39 3.80 6.85 -1.15 4.63

Competitive Comparison of Hargreaves Services's Operating Margin %

For the Integrated Freight & Logistics subindustry, Hargreaves Services'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.


Hargreaves Services's Operating Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Hargreaves Services's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hargreaves Services's Operating Margin % falls into.



Hargreaves Services 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.

Hargreaves Services's Operating Margin % for the fiscal year that ended in May. 2023 is calculated as

Operating Margin %=Operating Income (A: May. 2023 ) / Revenue (A: May. 2023 )
=6.879 / 211.459
=3.25 %

Hargreaves Services'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 )
=5.101 / 110.171
=4.63 %

* 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.


Hargreaves Services  (LSE:HSP) 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.


Hargreaves Services Operating Margin % Related Terms

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Hargreaves Services (LSE:HSP) Business Description

Traded in Other Exchanges
Address
West Terrace, Esh Winning, Durham, GBR, DH7 9PT
Hargreaves Services PLC delivers projects and services in the infrastructure, energy, and property sectors, supporting key industries within the UK and South East Asia. The company's business segments are Services and Hargreaves Land. It generates maximum revenue from the Services segment. The Services segment provides materials handling, mechanical and electrical engineering, land restoration, logistics and bulk earthmoving into the energy, environmental, infrastructure and industrial sectors.

Hargreaves Services (LSE:HSP) Headlines

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