FRMO (FRMO) Net Margin %: 60.65% (As of May. 2014)


FRMO FRMO Corp FRMO
12 GF Score
Price $6.65
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What is FRMO Net Margin %?

FRMO FRMO +3.74% 12 Net Margin % is 60.65% as of May. 2014. GuruFocus rates FRMO with a GF Score™ of 12/100.

Net margin is calculated as Net Income divided by its Revenue. FRMO's Net Income for the six months ended in May. 2014 was $3.87 Mil. FRMO's Revenue for the six months ended in May. 2014 was $6.39 Mil. Therefore, FRMO's net margin for the quarter that ended in May. 2014 was 60.65%.

The historical rank and industry rank for FRMO's Net Margin % or its related term are showing as below:


FRMO's Net Margin % is not ranked *
in the Asset Management industry.
Industry Median: 84.895
* Ranked among companies with meaningful Net Margin % only.

FRMO  (OTCPK:FRMO) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.

FRMO Net Margin % Related Terms

FRMO Net Margin % Historical Data

* Premium members only.

The historical data trend for FRMO's Net 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.

FRMO Net Margin % Chart

FRMO Annual Data
Trend Feb00 Feb01 Feb02 Feb03 Feb04 May12 May13 May14
Net Margin %
Get a 7-Day Free Trial 36.54 39.38 78.48 69.14 60.65

FRMO Semi-Annual Data
Feb00 Feb01 Feb02 Feb03 Feb04 May12 May13 May14
Net Margin % Get a 7-Day Free Trial 36.54 39.38 78.48 69.14 60.65

FRMO vs KTF, ZTR, PFL: Net Margin % Comparison

For the Asset Management subindustry, FRMO's Net Margin %, along with its competitors' market caps and Net 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.

FRMO Net Margin % vs Asset Management Industry

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

* The bar in red indicates where FRMO's Net Margin % falls into.


FRMO
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FRMO Corp FRMO
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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FRMO Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

FRMO's Net Margin for the fiscal year that ended in May. 2014 is calculated as

Net Margin=Net Income (A: May. 2014 )/Revenue (A: May. 2014 )
=3.873/6.386
=60.65 %

FRMO's Net Margin for the quarter that ended in May. 2014 is calculated as

Net Margin=Net Income (Q: May. 2014 )/Revenue (Q: May. 2014 )
=3.873/6.386
=60.65 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 60.65% mean?
FRMO (FRMO) has a Net Margin % of 60.65% as of May. 2014. Net margin is the ratio of total net income to net sales. View historical data on FRMO and its competitors.
Is FRMO's Net Margin % too high?
FRMO's current Net Margin % is 60.65%. The Asset Management industry median Net Margin % is 84.90. FRMO's value of 60.65% is 28.6% below this industry median. Overall, FRMO has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does FRMO's Net Margin % compare to KTF and ZTR?
FRMO's Net Margin % of 60.65% can be compared against companies in the Asset Management industry. The industry median Net Margin % is 84.90. FRMO's value of 60.65% is 28.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Asset Management company?
The median Net Margin % among Asset Management companies is 84.90, based on 1,580 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FRMO's current Net Margin % of 60.65% is 28.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on FRMO and its competitors. For the Asset Management industry, the median Net Margin % is 84.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FRMO's current Net Margin % is 60.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FRMO stock overvalued right now?
FRMO (FRMO) has a current Net Margin % of 60.65%. The current Net Margin % is 60.65% and 28.6% below the Asset Management industry median of 84.90. FRMO's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For FRMO (FRMO), the current Net Margin % is 60.65% as of May. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

FRMO Business Description

Address 1 North Lexington Avenue, Suite 12C, White Plains, NY, USA, 10601
FRMO Corp is an intellectual capital firm identifying and managing investment strategies and business opportunities.
12GF Score

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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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