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Webco Industries (Webco Industries) Operating Margin % : 5.66% (As of Jul. 2023)


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What is Webco Industries Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Webco Industries's Operating Income for the six months ended in Jul. 2023 was $38.9 Mil. Webco Industries's Revenue for the six months ended in Jul. 2023 was $686.9 Mil. Therefore, Webco Industries's Operating Margin % for the quarter that ended in Jul. 2023 was 5.66%.

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

WEBC' s Operating Margin % Range Over the Past 10 Years
Min: -0.27   Med: 3.53   Max: 10.86
Current: 5.66


WEBC's Operating Margin % is ranked better than
56.05% of 603 companies
in the Steel industry
Industry Median: 4.41 vs WEBC: 5.66

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

Webco Industries's Operating Income for the six months ended in Jul. 2023 was $38.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2023 was $38.9 Mil.


Webco Industries Operating Margin % Historical Data

The historical data trend for Webco Industries'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.

Webco Industries Operating Margin % Chart

Webco Industries Annual Data
Trend Jul05 Jul06 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.18 -0.27 2.31 5.56 5.66

Webco Industries Semi-Annual Data
Jul95 Jul96 Jul97 Jul98 Jul99 Jul00 Jul01 Jul02 Jul03 Jul04 Jul05 Jul06 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul23
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 1.18 -0.27 2.31 5.56 5.66

Competitive Comparison of Webco Industries's Operating Margin %

For the Steel subindustry, Webco Industries'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.


Webco Industries's Operating Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Webco Industries's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Webco Industries's Operating Margin % falls into.



Webco Industries 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.

Webco Industries's Operating Margin % for the fiscal year that ended in Jul. 2023 is calculated as

Operating Margin %=Operating Income (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=38.907 / 686.916
=5.66 %

Webco Industries's Operating Margin % for the quarter that ended in Jul. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jul. 2023 ) / Revenue (Q: Jul. 2023 )
=38.907 / 686.916
=5.66 %

* 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.


Webco Industries  (OTCPK:WEBC) 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.


Webco Industries Operating Margin % Related Terms

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


Webco Industries (Webco Industries) Business Description

Traded in Other Exchanges
N/A
Address
9101 West 21st Street S, P.O. Box 100, Sand Springs, OK, USA, 74063
Webco Industries Inc is a specialty manufacturer of high-quality carbon and stainless steel tubing products that are designed to industry and customer specifications. The company's products include Welded tubing; Cold drawn- Welded and Cold drawn- Seamless. Its value-added services include bending, custom mill length, end formed/swaged, finning, heat treating, packaging, precision cutting, product availability and responsiveness.
Executives
Dana Suzette Weber director, 10 percent owner, officer: Pres and COO
F William Weber director, 10 percent owner, officer: Chmn and CEO
Bradley Scott Vetal director 10701 E UTE STREET, TULSA OK 74116
Jack D Mccarthy director
David Edward Boyer officer: Sr VP - Tubing Oper and Secy
Michael Paul Howard officer: Sr VP - Fin and Adm / CFO
Kenneth Eugene Case director
Christopher Lee Kowalski director, officer: Pres of 100% owned sub

Webco Industries (Webco Industries) Headlines

From GuruFocus

/C O R R E C T I O N -- Webco Industries Inc/

By PRNewswire PRNewswire 06-08-2021