Switch to:
GuruFocus has detected 5 Warning Signs with The Valspar Corp $VAL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
The Valspar Corp (NYSE:VAL)
Net Margin %
4.49% (As of Jan. 2017)

Net margin is calculated as net income divided by its revenue. The Valspar Corp's net income for the three months ended in Jan. 2017 was $41 Mil. The Valspar Corp's revenue for the three months ended in Jan. 2017 was $908 Mil. Therefore, The Valspar Corp's net margin for the quarter that ended in Jan. 2017 was 4.49%.

VAL' s Net Margin % Range Over the Past 10 Years
Min: -3.51   Max: 9.09
Current: 8.1

-3.51
9.09
VAL's Net Margin % is ranked higher than
66% of the 1063 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 5.22 vs. VAL: 8.10 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

The Valspar Corp's Net Margin for the fiscal year that ended in Oct. 2016 is calculated as

Net Margin=Net Income (A: Oct. 2016 )/Revenue (A: Oct. 2016 )
=353.04/4190.552
=8.42 %

The Valspar Corp's Net Margin for the quarter that ended in Jan. 2017 is calculated as

Net Margin=Net Income (Q: Jan. 2017 )/Revenue (Q: Jan. 2017 )
=40.747/907.652
=4.49 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

The Valspar Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
netmargin 5.304.335.566.88-3.517.276.907.479.098.42

The Valspar Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
netmargin 8.5710.258.378.958.905.927.5710.249.374.49
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK