I remember seeing a study that showed mean reversion in businesses; high
margin businesses go back to low - to - average margin, high return on cap goes to normal, high earnings growth peters out to low growth... negative to low growth goes up to average or high growth etc..
Not exact matches
A
business can gain many benefits from behaving responsibility, but the impacts of corporate philanthropy
go far beyond profit
margin and increased sales.
«You're
going out of a weak
business in terms of financials and... entering a market with strong growth and higher
margins.
«The confidence number suggests that
businesses are continuing to see their
margins get squeezed, and their costs are
going up faster than top - line revenue,» says Mark Vitner, managing director and senior economist for Wells Fargo Securities.
This bring - your - own - device niche is one where RIM's current competitors are unlikely to
go — and it's potentially a high -
margin business, at that.
There's a difference in growth opportunities for Alphabet and Amazon, according to Macquarie's Ben Schachter: Every new Alphabet
business is
going to be lower
margin than its ads
business, while every new Amazon
business is
going to have higher
margins than retail.
By 1978, the retail shops were
gone, and Helen of Troy, in the words of company president Aaron Shenkman, was left with «a nice little $ 6 - million
business [net
margins were about 4 %].
Since its failed effort to
go upmarket under ex-CEO Johnson in 2012 and 2013, Penney has been fixing its
business by bringing back popular in - house brands like St. John's Bay that offer higher profit
margins, fixing its e-commerce
business, and tweaking its homes goods selection.
«Virtually every opportunity that GOOG invests in is
going to be structurally lower
margin than its core search
business, whereas virtually every opportunity that AMZN invests in is
going to be structurally higher
margin than its core ultra-low
margin retail
business,» he wrote in a note to clients.
But if I took the product out of it, and said here's a
business that
went from zero to $ 100 million in two years, they have the fastest growth in paid subscribers at 67 percent gross
margins, that's a really interesting
business.
If you can run carefully structured promotions, like I outlined in my last column, Fresh Thinking for Uncertain Times, and see a bit of a pop in your
business without eroding
margins, I would
go that route.
Earnings at the company, doing
business as Regional Finance, beat analysts» average estimate in a Bloomberg survey by the widest
margin since it
went public in March 2012.
Likewise, if you run your own
business and focus on keeping costs low,
margins sufficiently high, and reduce spending in - line, you're probably
going to come out ahead of the game by using these downturns to dollar cost average into your portfolio.
A firm that has high gross profit
margins from a sustainable
business from a core product like bleach, laundry detergent, or chocolate, to provide an illustration, is
going to be much harder to put out of
business when the economy turns down than one that has razor - thin
margins.
This absolutely could
go sidewise: Zillow is already being hammered in the stock market — investors aren't generally fans of high -
margin companies entering low -
margin businesses, with huge amounts of volatility risk to boot.
The small part of Amazon's
business produces relatively high
margins, so Amazon is
going to invest in growing the segment.
It might have problems that management isn't addressing; competitors might be cutting into an important line of
business; profits may be rising but profit
margins (net profits divided by sales) might be
going down; a new technology might threaten to eat the company's lunch; there might even be fraud.
A BOOMING
business selling hot pies and other ready - to -
go meals to petrol station and convenience stores was not enough to counter a shift by supermarket shoppers to lower - priced packaged desserts, reducing
margins for Patties Foods during the half and cutting interim profit by 16.5 per cent.
But the spotlight is on the flagging performance of the Maggie Beer Products
business, which suffered a loss of $ 251,000 in the first half of 2017 - 18 as a rollout into IGA stores operated by Metcash
went slower than planned, and higher spending on promotions shredded
margins.
There are many other examples of the clubs lack of ambition and ineptitude over the last ten years and I don't have either the patience or the time to
go through the whole catalogue, its clear to anyone who is clear headed and able to for a reasonably intelligent opinion that our beloved club is being run by a bunch of silver spooned
business men who car nothing for the clubs status within the areana that it operates only for the share prices and profit and loss
margins and they are aided by a stubborn and deluded manager who has failed to deliver the EPL to his clubs fans for over ten years and who has failed to move with the times simply because he can retain his role in the club and deliver the minimum of results but maximum profit to the shareholders and board.
It was explained to me, by several owners, that
going in and trying to monetize traditional betting on a point spread would be a low -
margin business for the NFL.
It is also very fuel - efficient, and in a
business where profit
margins can be slim, that
goes a long way with caterers.
A
margin of safety acts as a «buffer» for the long - term investor, protecting one's downside just in case something
goes wrong with the
business / investment.
While WealthFront, Betterment, SigFig, Personal Capital and others may take money away from the brokers and investment advisors, their don't really have a
business because their
margins are
going to suck.
Overall, I'm
going to make the daring assumption the
business reverts to a 10.4 % operating
margin (almost GBP 1.9 million) in 2014.
If you let
go of the idea of predicting «when» and focus on «what» intrinsic value is and «how» to buy a partial stake in a real
business, that you understand, with a
margin of safety, there is some hope for you as a Graham value investor.
The growing presence of internet outlets is messing around with the
business models of many traditional retailers, and Hirschberg worries that it is
going to impact
margins to the point that some merchants will no longer be able to compete.
As time
went on and we began just really testing all aspects of the firm it became pretty clear that it was
going to be difficult to have any sort of a low cost model that also provided attorneys great benefits and great wages and had a profit
margin that I wanted the law firm to have so a spin off company was created, Access Legal to make sure that that mission was still fulfilled while the law firm was able to evolve into a healthier
business.
In a period where reduced profit
margins are a reality, firms need to fully understand the real financial drivers of their
business if they are
going to survive and thrive in the new market.
For us to
go for an IPO, we need the new
business margin that has shrunk in the last year to
go up and growth to come back.»
If you take a cynical view and believe Apple's
business is to peddle extremely high -
margin goods to a captive audience of ecosystem - locked suckers, you're
going to have to explain how and why Apple was able to gain market share against Android with this phone.
So Obamacare just forces more people into a dysfunctional insurance market, but it then caps the profit
margins that insurers can have (80 - 85 % of all premiums must
go to medical costs), how long before insurers get out of that
business?
To be honest, I thought the
margins would be better - and while the gross
margins are pretty decent - there's a lot of human «touch» that
goes into running a hospitality
business, which is what this is..