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Dreamtech Co (XKRX:192650) Operating Margin % : 2.97% (As of Dec. 2023)


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What is Dreamtech Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Dreamtech Co's Operating Income for the three months ended in Dec. 2023 was ₩7,378 Mil. Dreamtech Co's Revenue for the three months ended in Dec. 2023 was ₩248,038 Mil. Therefore, Dreamtech Co's Operating Margin % for the quarter that ended in Dec. 2023 was 2.97%.

Warning Sign:

Dreamtech Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.7%.

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

XKRX:192650' s Operating Margin % Range Over the Past 10 Years
Min: -3.62   Med: 5.63   Max: 7.81
Current: 3.3


XKRX:192650's Operating Margin % is ranked worse than
50.47% of 2463 companies
in the Hardware industry
Industry Median: 3.37 vs XKRX:192650: 3.30

Dreamtech Co's 5-Year Average Operating Margin % Growth Rate was -5.70% per year.

Dreamtech Co's Operating Income for the three months ended in Dec. 2023 was ₩7,378 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ₩34,043 Mil.

Warning Sign:

Dreamtech Co Ltd has recorded a loss in operating income at least once over the past 3 years.


Dreamtech Co Operating Margin % Historical Data

The historical data trend for Dreamtech Co'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.

Dreamtech Co Operating Margin % Chart

Dreamtech Co 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 5.44 3.00 7.81 7.06 3.30

Dreamtech Co 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 1.96 3.70 -1.11 6.34 2.97

Competitive Comparison of Dreamtech Co's Operating Margin %

For the Electronic Components subindustry, Dreamtech Co'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.


Dreamtech Co's Operating Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Dreamtech Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Dreamtech Co's Operating Margin % falls into.



Dreamtech Co 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.

Dreamtech Co'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 )
=34042.903 / 1030380.774
=3.30 %

Dreamtech Co'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 )
=7377.819 / 248038.465
=2.97 %

* 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.


Dreamtech Co  (XKRX:192650) 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.


Dreamtech Co Operating Margin % Related Terms

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


Dreamtech Co (XKRX:192650) Business Description

Traded in Other Exchanges
N/A
Address
3rd & 4th Floor, Uniquest Building, 314 Hwangsaeul-ro, Bundang, Seongnam, Gyeonggi, KOR, 463-824
Dreamtech Co Ltd is engaged in the development and production of mobile phone modules. It provides customized solutions for OLED display modules, fingerprint sensor modules, automotive LED modules, IT convergence, sensor packages and medical devices.

Dreamtech Co (XKRX:192650) Headlines

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