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Lender Processing Services, (FRA:L30) Operating Margin % : 15.13% (As of Sep. 2013)


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What is Lender Processing Services, Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Lender Processing Services,'s Operating Income for the three months ended in Sep. 2013 was €47 Mil. Lender Processing Services,'s Revenue for the three months ended in Sep. 2013 was €313 Mil. Therefore, Lender Processing Services,'s Operating Margin % for the quarter that ended in Sep. 2013 was 15.13%.

The historical rank and industry rank for Lender Processing Services,'s Operating Margin % or its related term are showing as below:


FRA:L30's Operating Margin % is not ranked *
in the Business Services industry.
Industry Median: 6.175
* Ranked among companies with meaningful Operating Margin % only.

Lender Processing Services,'s 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Lender Processing Services,'s Operating Income for the three months ended in Sep. 2013 was €47 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2013 was €198 Mil.


Lender Processing Services, Operating Margin % Historical Data

The historical data trend for Lender Processing Services,'s Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lender Processing Services, Operating Margin % Chart

Lender Processing Services, Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Operating Margin %
Get a 7-Day Free Trial 23.47 22.45 24.41 14.05 11.66

Lender Processing Services, Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.49 10.37 21.08 9.62 15.13

Competitive Comparison of Lender Processing Services,'s Operating Margin %

For the Specialty Business Services subindustry, Lender Processing Services,'s Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lender Processing Services,'s Operating Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Lender Processing Services,'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where Lender Processing Services,'s Operating Margin % falls into.



Lender Processing Services, Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Lender Processing Services,'s Operating Margin % for the fiscal year that ended in Dec. 2012 is calculated as

Operating Margin %=Operating Income (A: Dec. 2012 ) / Revenue (A: Dec. 2012 )
=177.496 / 1522.21
=11.66 %

Lender Processing Services,'s Operating Margin % for the quarter that ended in Sep. 2013 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 )
=47.43 / 313.398
=15.13 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lender Processing Services,  (FRA:L30) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Lender Processing Services, Operating Margin % Related Terms

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Lender Processing Services, (FRA:L30) Business Description

Traded in Other Exchanges
N/A
Address
Lender Processing Services, Inc. was formed as a Delaware corporation in December 2007. The Company is a provider of integrated technology, data and services to the mortgage lending industry in mortgage processing in the U.S. It has two reporting segments, Technology, Data and Analytics and Loan Transaction Services. Its Technology, Data and Analytics segment offers software systems and information solutions that facilitate and automate many of the business across the life cycle of a mortgage. The primary applications and services for Company's technology businesses include servicing technology, default technology, origination technology, and its data and analytics services include alternative valuation services and data and information. The Company's Transaction Services segment offers customized outsourced business process and information solutions. The primary application and services of its origination services businesses include Settlement and title agency services, appraisal services, other origination services. The Company's default management services include: foreclosure management services, including access to a nationwide network of independent attorneys, document preparation and recording and other services; property inspection and preservation services, designed to preserve the value of properties securing defaulted loans; and asset management services, providing disposition services for its customers' real estate owned properties through a network of independent real estate brokers, attorneys and other vendors to facilitate the transaction. Corporate overhead costs and other operations that are not included in its operating segments are included in Corporate and Other.

Lender Processing Services, (FRA:L30) Headlines

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