NEPG (NEP Group) Operating Income: $ Mil (TTM As of Dec. 2014)

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What is NEP Group Operating Income?

NEP Group NEPG Operating Income is $ Mil as of Dec. 2014.

NEP Group's Operating Income for the six months ended in Dec. 2014 was $0.86 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. NEP Group's Operating Income for the six months ended in Dec. 2014 was $0.86 Mil. NEP Group's Revenue for the six months ended in Dec. 2014 was $442.75 Mil. Therefore, NEP Group's Operating Margin % for the quarter that ended in Dec. 2014 was 0.19%.

NEP 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. NEP Group's annualized ROC % for the quarter that ended in Dec. 2014 was 0.07%. NEP Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2014 was -3.01%.

NEP Group  (NYSE:NEPG) Operating Income Explanation

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

NEP Group's annualized ROC % for the quarter that ended in Dec. 2014 is calculated as:

ROC % (Q: Dec. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2013 ) + Invested Capital (Q: Dec. 2014 ))/ count )
=0.859 * ( 1 - 23.66% )/( (847.956 + 1065.703)/ 2 )
=0.6557606/956.8295
=0.07 %

where

Invested Capital(Q: Dec. 2013 )
=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))
=879.796 - 27.925 - ( 3.915 - max(0, 48.375 - 63.11+3.915))
=847.956

Invested Capital(Q: Dec. 2014 )
=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))
=1117.091 - 44.582 - ( 6.806 - max(0, 71.303 - 83.373+6.806))
=1065.703

Note: The Operating Income data used here is one times the annual (Dec. 2014) data.

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

NEP Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2014 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2013  Q: Dec. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-10.565/( ( (300.736 + max(-25.628, 0)) + (401.437 + max(-33.744, 0)) )/ 2 )
=-10.565/( ( 300.736 + 401.437 )/ 2 )
=-10.565/351.0865
=-3.01 %

where Working Capital is:

Working Capital(Q: Dec. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 8.895) - (27.925 + 6.598 + 0)
=-25.628

Working Capital(Q: Dec. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 16.248) - (44.582 + 5.41 + 0)
=-33.744

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2014) EBIT data.

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

NEP Group's Operating Margin % for the quarter that ended in Dec. 2014 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2014 )/Revenue (Q: Dec. 2014 )
=0.859/442.752
=0.19 %

* 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.

NEP Group Operating Income Related Terms

NEP Group Operating Income Historical Data

* Premium members only.

The historical data trend for NEP 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.

NEP Group Operating Income Chart

NEP Group Annual Data
Trend Dec13 Dec14
Operating Income
15.41 0.86

NEP Group Semi-Annual Data
Dec13 Dec14
Operating Income 15.41 0.86

NEP 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2014 was $ 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 $ Mil mean?
NEP Group (NEPG) has a Operating Income of $ Mil as of Dec. 2014. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on NEP Group and its competitors.
Is NEP Group's Operating Income too high?
NEP Group's current Operating Income is $ Mil.
How does NEP Group's Operating Income compare to CRCO and ASKH?
NEP Group's Operating Income of $ Mil can be compared against companies in the Media - Diversified 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 Media - Diversified company?
A good Operating Income depends on the Media - Diversified 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 NEP Group and its competitors. NEP Group's current Operating Income is $ Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEP Group stock overvalued right now?
NEP Group (NEPG) has a current Operating Income of $ Mil. The current Operating Income is $ Mil. 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 NEP Group (NEPG), the current Operating Income is $ Mil as of Dec. 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.

NEP Group Business Description

NEP Group Inc was founded on December 24, 2012. The Company is a provider of customized broadcast solutions to the live sports and entertainment markets offering various broadcast and live event services. The Company's engineers design live event solutions and work side-by-side with its clients to customize its solutions and provide real-time support during a broadcast or live event to ensure a seamlessly delivered production. The Company has developed a range of services operating inside and outside of the United States and has supported events. It serves the premium sports, entertainment and other live event production markets, where it offers mission-critical outsourced solutions, including remote production, studio production, video display and host broadcasting. It competes in three primary geographies: the United States, Europe and Australia, servicing the sports, entertainment and other live events markets. It competes against F&F Productions, Game Creek Video, Lyon Video and Mobile Television Group in the United States; Gearhouse Broadcast in Australia; CTV Outside Broadcasts and Telegenic in the U.K.; AMP Visuals, Euro Media Group, Mediapro Group and Top Vision in Continental Europe.