Experian PLC Operating Margin vs. Profit Margin

EXPGF Stock  USD 44.03  0.22  0.50%   
Based on the measurements of profitability obtained from Experian PLC's financial statements, Experian PLC may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Experian PLC's ability to earn profits and add value for shareholders.
For Experian PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Experian PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Experian PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Experian PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Experian PLC over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Experian PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Experian PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Experian PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Experian PLC Profit Margin vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Experian PLC's current stock value. Our valuation model uses many indicators to compare Experian PLC value to that of its competitors to determine the firm's financial worth.
Experian PLC is rated below average in operating margin category among its peers. It also is rated below average in profit margin category among its peers fabricating about  0.70  of Profit Margin per Operating Margin. The ratio of Operating Margin to Profit Margin for Experian PLC is roughly  1.43 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Experian PLC's earnings, one of the primary drivers of an investment's value.

Experian Profit Margin vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Experian PLC

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.21 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Experian PLC

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.15 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Experian Profit Margin Comparison

Experian PLC is rated below average in profit margin category among its peers.

Experian PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Experian PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Experian PLC will eventually generate negative long term returns. The profitability progress is the general direction of Experian PLC's change in net profit over the period of time. It can combine multiple indicators of Experian PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Experian plc, together with its subsidiaries, operates as a technology company. Experian plc was founded in 1826 and is headquartered in Dublin, Ireland. EXPERIAN PLC operates under Consulting Services classification in the United States and is traded on OTC Exchange. It employs 18952 people.

Experian Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Experian PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Experian PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Experian PLC's important profitability drivers and their relationship over time.

Use Experian PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Experian PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Experian PLC will appreciate offsetting losses from the drop in the long position's value.

Experian PLC Pair Trading

Experian PLC Pair Trading Analysis

The ability to find closely correlated positions to Experian PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Experian PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Experian PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Experian PLC to buy it.
The correlation of Experian PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Experian PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Experian PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Experian PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Experian PLC position

In addition to having Experian PLC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Small Value Funds
Small Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 31 constituents at this time.
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Other Information on Investing in Experian OTC Stock

To fully project Experian PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Experian PLC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Experian PLC's income statement, its balance sheet, and the statement of cash flows.
Potential Experian PLC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Experian PLC investors may work on each financial statement separately, they are all related. The changes in Experian PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Experian PLC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.