PSAV (PSAV) Operating Margin %: 6.99% (As of Mar. 2016)


What is PSAV Operating Margin %?

PSAV PSAV Operating Margin % is 6.99% as of Mar. 2016.

Operating Margin % is calculated as Operating Income divided by its Revenue. PSAV's Operating Income for the three months ended in Mar. 2016 was $27.73 Mil. PSAV's Revenue for the three months ended in Mar. 2016 was $396.88 Mil. Therefore, PSAV's Operating Margin % for the quarter that ended in Mar. 2016 was 6.99%.

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


PSAV's Operating Margin % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.51
* Ranked among companies with meaningful Operating Margin % only.

PSAV's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

PSAV's Operating Income for the three months ended in Mar. 2016 was $27.73 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2016 was $55.81 Mil.

PSAV  (NYSE:PSAV) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.

Be Aware

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 (Diluted) 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.

PSAV Operating Margin % Related Terms

PSAV Operating Margin % Historical Data

* Premium members only.

The historical data trend for PSAV's Operating 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.

PSAV Operating Margin % Chart

PSAV Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Operating Margin %
2.55 4.93 0.00 3.55

PSAV Quarterly Data
Dec12 Dec13 Mar15 Jun15 Sep15 Dec15 Mar16
Operating Margin % Get a 7-Day Free Trial 6.49 6.39 -4.31 3.67 6.99

PSAV vs CRCO, ASKH, PTSX: Operating Margin % Comparison

For the Broadcasting subindustry, PSAV's Operating Margin %, along with its competitors' market caps and Operating 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.

PSAV Operating Margin % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, PSAV's Operating Margin % distribution charts can be found below:

* The bar in red indicates where PSAV's Operating Margin % falls into.


PSAV Operating Margin % Calculation

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.

PSAV's Operating Margin % for the fiscal year that ended in Dec. 2015 is calculated as

Operating Margin %=Operating Income (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=52.815 / 1487.17
=3.55 %

PSAV's Operating Margin % for the quarter that ended in Mar. 2016 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=27.726 / 396.879
=6.99 %

* 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 Margin % →
What does a Operating Margin % of 6.99% mean?
PSAV (PSAV) has a Operating Margin % of 6.99% as of Mar. 2016. Operating margin is the ratio of total operating income to net sales. View historical data on PSAV and its competitors.
Is PSAV's Operating Margin % too high?
PSAV's current Operating Margin % is 6.99%. The Media - Diversified industry median Operating Margin % is 2.51. PSAV's value of 6.99% is 178.5% above this industry median.
How does PSAV's Operating Margin % compare to CRCO and ASKH?
PSAV's Operating Margin % of 6.99% can be compared against companies in the Media - Diversified industry. The industry median Operating Margin % is 2.51. PSAV's value of 6.99% is 178.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PSAV's current Operating Margin % of 6.99% is 178.5% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on PSAV and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PSAV's current Operating Margin % is 6.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSAV stock overvalued right now?
PSAV (PSAV) has a current Operating Margin % of 6.99%. The current Operating Margin % is 6.99% and 178.5% above the Media - Diversified industry median of 2.51. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For PSAV (PSAV), the current Operating Margin % is 6.99% as of Mar. 2016. 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.

PSAV Business Description

PSAV Inc was incorporated in Delaware on August 11, 2015. The Company along with its subsidiaries provides event technology services. The Company provides services including audiovisual services, equipment rental, staging and meeting services, communication systems, and related technical support to its customers in various venues, including hotels and convention centers. The Company's Video technology includes front and rear projection from large format HD high lumen projection to boardroom-style projectors, playback systems, image magnification, digital capture, cameras and display systems, including LED displays and video walls; Rigging Solutions include design and installation of permanently installed rig points in meeting venues, day-to-day deployment of rigging systems to safely transform meeting and event spaces for larger and more sophisticated set and lighting designs and certified trainers and inspectors; Wi-Fi Solutions include managing venues' entire network to provide customers secure and reliable wired and wireless solutions; Staging includes collections of custom screens and the ability to provide concert sound, broadcast quality projection, seasoned stage producers, and CAD drawing; Creative Services including Thematic creation, PowerPoint display, video creation, & stage sets; Mobile Device Applications tailored to the specific events that provide the schedule of events, maps, sponsors and detailed information on the host customer; Video Mapping / Simultaneous Translation; Virtual Meetings and Events; Event Consultation and Support, Power Distribution Solutions including streamlining of special event power distribution for event and production power across events, meeting rooms and trade shows; Audio including microphone and sound solutions with digital mixers, wireless microphones, networked audio and proprietary software to control live sound systems; and Lighting including speaker and stage lighting, intelligent lighting and decorative and theatrical lighting through gel lights and LED lights. The Company operates in two segments including Domestic and International. The Domestic segment provides services to customers throughout the United States and Puerto Rico; and is provider of event technology services at approximately over 1,000 hotel properties and other event venues. The International segment provides services to its customers in Canada, Mexico, the Caribbean, Europe and the Middle East, in addition to providing non-venue based services in Asia; and provides event technology services at approximately over 300 international hotel properties and other event venues. The Company's customers include corporations, event organizers, trade associations and meeting planners. The Company faces competition from Freeman Company.