Purple Group (JSE:PPE) Operating Income: R102.0 Mil (TTM As of Feb. 2026)

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JSE:PPE Purple Group Ltd JSE:PPE
72 GF Score
Price R2.13
GF Value R1.47
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Purple Group Operating Income?

Purple Group JSE:PPE +1.43% 72 Operating Income is R102.0 Mil as of Feb. 2026. GuruFocus rates JSE:PPE with a GF Score™ of 72/100 and a GF Value™ of R1.47 (Significantly Overvalued). The stock has 1 warning sign investors should review.

Purple Group's Operating Income for the six months ended in Feb. 2026 was R56.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was R102.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Purple Group's Operating Income for the six months ended in Feb. 2026 was R56.9 Mil. Purple Group's Revenue for the six months ended in Feb. 2026 was R258.5 Mil. Therefore, Purple Group's Operating Margin % for the quarter that ended in Feb. 2026 was 22.02%.

Purple Group's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Purple Group's annualized ROC % for the quarter that ended in Feb. 2026 was 9.30%. Purple Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 2,123.64%.


Purple Group  (JSE:PPE) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Purple Group's annualized ROC % for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=113.828 * ( 1 - 25.96% )/( (928.05 + 883.574)/ 2 )
=84.2782512/905.812
=9.30 %

where

Invested Capital(Q: Aug. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1264.74 - 131.429 - ( 521.707 - max(0, 449.118 - 654.379+521.707))
=928.05

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1289.742 - 146.858 - ( 516.342 - max(0, 405.34 - 664.65+516.342))
=883.574

Note: The Operating Income data used here is two times the semi-annual (Feb. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Purple Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Aug. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=157.808/( ( (8.521 + max(-340.692, 0)) + (6.341 + max(-255.094, 0)) )/ 2 )
=157.808/( ( 8.521 + 6.341 )/ 2 )
=157.808/7.431
=2,123.64 %

where Working Capital is:

Working Capital(Q: Aug. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(24.904 + 0 + 81.36) - (131.429 + 0 + 315.527)
=-340.692

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(142.975 + 0 + 5.333) - (146.858 + 0 + 256.544)
=-255.094

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Feb. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Purple Group's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Feb. 2026 )/Revenue (Q: Feb. 2026 )
=56.914/258.487
=22.02 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, 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 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.


Purple Group Operating Income Related Terms


Purple Group Operating Income Historical Data

* Premium members only.

The historical data trend for Purple Group's Operating Income 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.

Purple Group Operating Income Chart

Purple Group Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.10 39.73 -51.99 33.34 86.93

Purple Group Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
Operating Income 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 15.51 17.84 41.83 45.10 56.91
JSE:PPE
72GF Score
Purple Group Ltd JSE:PPE
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Purple Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was R102.0 Mil.

* 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 Operating Income →
What does a Operating Income of R102.0 Mil mean?
Purple Group (JSE:PPE) has a Operating Income of R102.0 Mil as of Feb. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Purple Group and its competitors.
Is Purple Group's Operating Income too high?
Purple Group's current Operating Income is R102.0 Mil. Overall, Purple Group has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Purple Group's Operating Income compare to FRHC and VOYA?
Purple Group's Operating Income of R102.0 Mil can be compared against companies in the Diversified Financial Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Diversified Financial Services company?
A good Operating Income depends on the Diversified Financial Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Purple Group and its competitors. Purple Group's current Operating Income is R102.0 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purple Group stock overvalued right now?
Based on GuruFocus' analysis, Purple Group (JSE:PPE) is currently considered Significantly Overvalued. The stock's GF Value™ is R1.47, compared to a current price of R2.13 — trading 44.9% above its estimated fair value. The current Operating Income is R102.0 Mil. Purple Group's overall GF Score™ is 72/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Purple Group (JSE:PPE), the current Operating Income is R102.0 Mil as of Feb. 2026. 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.

Is Purple Group (JSE:PPE) Overvalued in 2026?

Based on GuruFocus' analysis, Purple Group stock appears to be overvalued. The current stock price of R2.13 is trading 44.9% above its estimated GF Value™ of R1.47. GuruFocus considers Purple Group to be Significantly Overvalued.

Key valuation signals for JSE:PPE:

  • Operating Income: R102.0 Mil
  • GF Value™: R1.47 vs. price of R2.13 (44.9% above fair value)
  • GF Score™: 72/100 with 1 warning sign

No single metric tells the full story. See the JSE:PPE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Purple Group Business Description

Address 173 Oxford Road, WeWork - Coworking & Office Space 1F, Rosebank, Johannesburg, GT, ZAF, 2196
Purple Group Ltd operates as a financial services company. The company engages in trading, investing, and asset management, and also offers various products and services related to investing and managing portfolios. The Group comprises the following operating segments: Easy Group includes First World Trader Proprietary Limited (FWT or EasyEquities), EasyProperties Proprietary Limited (EasyProperties), EasyDefi Technologies Proprietary Limited (Easy Crypto), and Retirement Investments and Savings for Everyone (RISE or EasyRetire). Head Office and Investments represent fees and dividends earned on investments and fair value adjustments made against them, as well as head office costs.
72GF Score

Get the complete analysis for JSE:PPE

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

R2.13
Price
R1.47
GF Value