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Epiq Systems (Epiq Systems) Operating Margin % : 4.42% (As of Jun. 2016)


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What is Epiq Systems Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Epiq Systems's Operating Income for the three months ended in Jun. 2016 was $6.2 Mil. Epiq Systems's Revenue for the three months ended in Jun. 2016 was $140.7 Mil. Therefore, Epiq Systems's Operating Margin % for the quarter that ended in Jun. 2016 was 4.42%.

The historical rank and industry rank for Epiq Systems's Operating Margin % or its related term are showing as below:


EPIQ's Operating Margin % is not ranked *
in the Software industry.
Industry Median: 3.135
* Ranked among companies with meaningful Operating Margin % only.

Epiq Systems's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Epiq Systems's Operating Income for the three months ended in Jun. 2016 was $6.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2016 was $31.9 Mil.


Epiq Systems Operating Margin % Historical Data

The historical data trend for Epiq Systems'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.

Epiq Systems Operating Margin % Chart

Epiq Systems Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.40 11.97 6.06 2.28 5.16

Epiq Systems Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 0.66 5.75 8.38 3.66 4.42

Competitive Comparison of Epiq Systems's Operating Margin %

For the Information Technology Services subindustry, Epiq Systems'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.


Epiq Systems's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Epiq Systems's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Epiq Systems's Operating Margin % falls into.



Epiq Systems 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.

Epiq Systems's Operating Margin % for the fiscal year that ended in Dec. 2015 is calculated as

Operating Margin %=Operating Income (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=28.075 / 544.205
=5.16 %

Epiq Systems's Operating Margin % for the quarter that ended in Jun. 2016 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=6.215 / 140.744
=4.42 %

* 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.


Epiq Systems  (NAS:EPIQ) 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.


Epiq Systems Operating Margin % Related Terms

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Epiq Systems (Epiq Systems) Business Description

Traded in Other Exchanges
N/A
Address
Epiq Systems Inc was incorporated in the State of Missouri on July 13, 1988, and on July 15, 1988 acquired all of the assets of an unrelated predecessor corporation. The Company is a provider of integrated technology solutions for the legal profession. The Company's solutions streamline the administration of bankruptcy, litigation, financial transactions and regulatory compliance matters. It offers managed technology solutions for eDiscovery, document review, legal notification, claims administration and controlled disbursement of funds. Its clients include law firms, corporate legal departments, bankruptcy trustees, government agencies, mortgage processors, and financial institutions. The Company's business is organized into two reportable segments: the Technology segment and the Bankruptcy and Settlement Administration segment. The Company's Technology segment provides eDiscovery managed services and technology solutions comprised of consulting, collections and forensics, processing, search and review, production of documents and document review services to companies and the litigation departments of law firms. The Company's eDataMatrix software analyzes filters, deduplicates and produces documents for review. The Company's customers are corporations that use its products and services cooperatively with their legal counsel to manage the eDiscovery process for litigation, investigations, anti-trust filings and regulatory matters. Produced documents are made available mainly through a hosted environment utilizing its proprietary software DocuMatrix and third-party software which allows for efficient attorney review and data requests. Bankruptcy and Settlement Administration segment provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. The Company's Bankruptcy and Settlement Administration segment provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. The Company's Technology segment, eDiscovery competes with companies such as, Kroll Ontrack, FTI Consulting, Inc., Huron Consulting Group Inc., The Dolan Company, Symantec Corporation, Recommind, Inc., Xerox and Autonomy. The Company's Bankruptcy and Settlement Administration segment, bankruptcy services competes with companies such as, Bankruptcy Management Solutions, Inc., which is a provider in Chapter 7 bankruptcy market. While in Chapter 11 bankruptcy market, the Company competes with Kurtzman Carson Consultants LLC and The Garden City Group, Inc. In Chapter 13 market, the Company's main competitor is Bankruptcy Software Specialists, LLC. The Company is subject to
Executives
Gregory M Share director THREE FIRST NATIONAL PLZ, SUITE 3800, CHICAGO IL 60602
Tjon Sien Fat Karin - Joyce officer: EVP & CFO 501 KANSAS AVENUE, KANSAS CITY KS 66105
Kevin L Robert director 501 KANSAS AVENUE, KANSAS CITY KS 66105
Terry Matlack director 233 W 47TH ST, KANSAS CITY MO 64112

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