3 Stocks With a Record of Operating Income Margin Growth

When the operating income margin continues to grow, it means a company is becoming more efficient in generating profits from its operating activities.

The operating income margin is a more effective measure than the net income margin when evaluating whether a company can generate income, as the metric excludes those items on which it has no or limited control, but that could weigh on the net income notably in some years.

The stocks listed below meet the above criteria, as their operating income margins have grown in recent years.

S&P Global Inc.

Investors may want to consider S&P Global Inc. (

SPGI, Financial), a New York-based provider of ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.

The stock saw its trailing 12-month operating income margin (51.75% as of the September 2021 quarter) grow by 6.10% on average every year over the past five years.

The share price increased by almost 50% over the past five years to close at $478.97 on Wednesday for a market capitalization of $115.95 billion.

S&P Global Inc. paid a quarterly dividend of $0.77 per common share on Dec. 10 for a dividend yield of 0.64% as of Dec. 15.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $512 per share.

Vanguard Group Inc. and BlackRock Inc. are among the largest top fund holders of the company with 8.40% and 7.28% of shares outstanding, respectively.

Regeneron Pharmaceuticals Inc.

The second stock that investors may want to consider is Regeneron Pharmaceuticals Inc. (

REGN, Financial), a New York-based biopharmaceutical company that engages in the discovery, development and production of drugs for the treatment of several medical conditions.

The company saw its trailing 12-month operating income margin (53.50% as of the September 2021 quarter) grow by 7.60% on average every year over the past five years.

The share price of $657.93 at close on Wednesday has risen by 30.83% over the past five years for a market capitalization of $69.15 billion.

Currently, Regeneron Pharmaceuticals Inc. does not pay dividends.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $714.74 per share.

FMR LLC is the leader in the group of top fund holders of the company with 10.29% of shares outstanding, followed by BlackRock Inc. with 8.71% of shares outstanding and VANGUARD GROUP INC with 7.51% of shares outstanding.

Cadence Design Systems Inc.

The third stock that investors may want to consider is Cadence Design Systems Inc. (

CDNS, Financial), a San Jose, California-based provider of application software and hardware worldwide.

The company saw its trailing 12-month operating income margin (25.81% as of the September 2021 quarter) grow by 8.40% on average every year over the past five years.

The share price has risen by 43.40% over the past five years for a market capitalization of $50.59 billion.

Currently, Cadence Design Systems Inc. does not pay dividends.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of approximately $177.01 per share.

Parnassus Core Equity Fund is the leader in the group of top fund holders with 65.97% of shares outstanding. It is followed by Parnassus Mid Cap Fund with 21.30% of shares outstanding and VANGUARD GROUP INC with 11.34% of shares outstanding.