3.02 - 3.02
2.85 - 3.74
400 / 3.8K (Avg.)
12.58 | 0.24
Profitability reveals how effectively the business turns revenues into profits. Higher and improving margins or returns on capital suggest a durable competitive advantage, supporting a stronger intrinsic valuation.
4.12%
ROE under 5% – Weak returns. Howard Marks would worry about capital misallocation. Further due diligence is essential.
1.90%
ROA below 2% – Very poor asset returns. Warren Buffett would demand radical management or strategic shifts.
5.13%
ROCE 5-10% – Weak efficiency. Howard Marks would question if management can boost profitability.
17.75%
Gross margin 10-20% – Weak. Howard Marks would demand clarity on why margins are compressed.
5.60%
Operating margin 5-10% – Low. Howard Marks would question the sustainability of profits in downturns.
3.18%
Net margin 3-5% – Low. Howard Marks would worry about resilience in a downturn.