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PSG Financial Services Limited (JSE:KST) Operating Margin % : 15.38% (As of Aug. 2023)


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What is PSG Financial Services Limited Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. PSG Financial Services Limited's Operating Income for the six months ended in Aug. 2023 was R546 Mil. PSG Financial Services Limited's Revenue for the six months ended in Aug. 2023 was R3,548 Mil. Therefore, PSG Financial Services Limited's Operating Margin % for the quarter that ended in Aug. 2023 was 15.38%.

Good Sign:

PSG Financial Services Limited operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for PSG Financial Services Limited's Operating Margin % or its related term are showing as below:

JSE:KST' s Operating Margin % Range Over the Past 10 Years
Min: 12.68   Med: 16.01   Max: 20.49
Current: 17.77


JSE:KST's Operating Margin % is ranked better than
53.32% of 632 companies
in the Asset Management industry
Industry Median: 15.01 vs JSE:KST: 17.77

PSG Financial Services Limited's 5-Year Average Operating Margin % Growth Rate was 4.40% per year.

PSG Financial Services Limited's Operating Income for the six months ended in Aug. 2023 was R546 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2023 was R1,177 Mil.


PSG Financial Services Limited Operating Margin % Historical Data

The historical data trend for PSG Financial Services Limited'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.

PSG Financial Services Limited Operating Margin % Chart

PSG Financial Services Limited Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.09 16.32 17.14 20.49 18.45

PSG Financial Services Limited Semi-Annual Data
Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
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 18.54 22.28 16.38 20.52 15.38

Competitive Comparison of PSG Financial Services Limited's Operating Margin %

For the Asset Management subindustry, PSG Financial Services Limited'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.


PSG Financial Services Limited's Operating Margin % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, PSG Financial Services Limited's Operating Margin % distribution charts can be found below:

* The bar in red indicates where PSG Financial Services Limited's Operating Margin % falls into.



PSG Financial Services Limited 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.

PSG Financial Services Limited's Operating Margin % for the fiscal year that ended in Feb. 2023 is calculated as

Operating Margin %=Operating Income (A: Feb. 2023 ) / Revenue (A: Feb. 2023 )
=1133.393 / 6142.354
=18.45 %

PSG Financial Services Limited's Operating Margin % for the quarter that ended in Aug. 2023 is calculated as

Operating Margin %=Operating Income (Q: Aug. 2023 ) / Revenue (Q: Aug. 2023 )
=545.872 / 3548.45
=15.38 %

* 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.


PSG Financial Services Limited  (JSE:KST) 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.


PSG Financial Services Limited Operating Margin % Related Terms

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PSG Financial Services Limited (JSE:KST) Business Description

Traded in Other Exchanges
Address
3 Howick Close, 4th Floor, The Edge, Tyger Waterfront, Tyger Valley, Bellville, ZAF, 7530
PSG Financial Services Limited is an independent financial services group. Business is executed through three operating divisions: PSG Wealth, PSG Asset Management, and PSG Insure. PSG Wealth provides the group with nearly half of its income, with PSG Insure outweighing PSG Asset Management. Through the Wealth unit, PSG delivers a comprehensive suite of products to individuals, families, and businesses. Some of the PSG Wealth offerings include investment products, stockbroking, estate and trust services, and many other related products. Offerings under PSG Insure cover a range of short-term insurance solutions, for both personal and commercial needs. PSG rounds out its portfolio with the PSG Asset Management group which offers a range of local unit trusts and international funds.

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