GuruFocus Profitability Rank ranks how profitable a company is and how likely the companys business will stay that way. It is based on these factors:
Operating Margin
Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
Consistency of the profitability
Piotroski F-Score
Predictability Rank
The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.
Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.
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