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RM (LSE:RM.) Profitability Rank : 6 (As of Nov. 2023)


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What is RM Profitability Rank?

RM 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

RM's Operating Margin % for the quarter that ended in Nov. 2023 was 3.73%. As of today, RM's Piotroski F-Score is 4.


Competitive Comparison of RM's Profitability Rank

For the Software - Application subindustry, RM's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.


RM's Profitability Rank Distribution in the Software Industry

For the Software industry and Technology sector, RM's Profitability Rank distribution charts can be found below:

* The bar in red indicates where RM's Profitability Rank falls into.



RM Profitability Rank Calculation

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.

RM has the Profitability Rank of 6.

Profitability Rank is not directly related to the Financial Strength. 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.

RM's Operating Margin % for the quarter that ended in Nov. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Nov. 2023 ) / Revenue (Q: Nov. 2023 )
=4.015 / 107.622
=3.73 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

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

RM has an F-score of 4 indicating the company's financial situation is typical for a stable company.

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


RM Profitability Rank Related Terms

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RM (LSE:RM.) Business Description

Industry
Traded in Other Exchanges
Address
142B Park Drive, Milton Park, Milton, Abingdon, Oxfordshire, GBR, OX14 4SE
RM PLC provides resources, software, and services to the education sector. The company is structured into three operating divisions: RM Resources, RM Assessment, and RM Technology. The RM Resources division consists of the operating business of TTS. TTS provides education resources used in schools through a predominantly direct marketing business model. The RM Assessment business provides IT software and services to exam boards and professional bodies to allow e-assessment. RM Technology division focuses on supplying IT software and services to schools and colleges. Its primary geographic markets are the United Kingdom, Europe, North America, Asia, the Middle East, and the Rest of the world.

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