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Harte-Hanks, Inc. (NYSE:HHS)
Profitability Rank
6 (As of Dec. 2013)

Harte-Hanks, Inc. has the Profitability Rank of 6.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

• 1. Operating Margin
• 2. Piotroski F-Score
• 3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
• 4. Consistency of the profitability
• 5. Predictability Rank

Harte-Hanks, Inc.'s operating margin for the quarter that ended in Dec. 2013 was 8.20%. As of today, Harte-Hanks, Inc.'s Piotroski F-Score is 9.


Definition

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way.

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.

Harte-Hanks, Inc. has the Profitability Rank of 6.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

•1. Operating Margin

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.

Harte-Hanks, Inc.'s Operating Margin for the quarter that ended in Dec. 2013 is calculated as:

Operating Margin=Operating Income (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=12.484 / 152.179
=8.20 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

•2. Piotroski F-Score

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Harte-Hanks, Inc. has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

•3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Harte-Hanks, Inc. operating margin has been in 5-year decline. The average rate of decline per year is -4.4%.

•4. Consistency of the profitability

•5. Predictability Rank


Related Terms

Financial Strength Rank, Operating Margin, Piotroski F-Score

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