With
the current operating profit margin at 16.5 %, last year's 1.75 Price / Sales ratio still looks valid.
The current operating profit margin is 21.6 %.
Not exact matches
The Irish firm could not escape the
current climate of squeezed
margins, higher raw material prices and «currency turbulence» with
operating profit for the year falling by over 8 per cent on 2003 to $ 238.546.
On balance, a valuation based simply on
current metrics seems neither too harsh nor too optimistic — there are still plenty of higher TV / radio M&A multiples to reference, but I think a 12 P / E and a 2.0 P / S ratio (based on a 21.8 %
operating profit margin) are pretty neutral values to apply.
Greencore touts a 6.4 %
Operating Profit Margin, the reality is their
current Operating FCF
Margin is only 1.8 %!
Of course, it looked cheap all the way down... Despite recent struggles, it has an extraordinary 38 %
operating profit margin (and GBP 20 mo of cash), providing wonderful support for the
current share price.
Since then,
Operating Profit has improved from 11.2 % in 2009 to a
current 20.7 %, due to Gross
Margin improvements and aggressive G&A expense reductions.
stock, and I'm reasonably confident it will revert to their peak / average
Operating Profit Margins, I'll actually price it at a P / S Ratio that reflects an average of
current and peak (or LT average)
Margins.