GURUFOCUS.COM » STOCK LIST » Technology » Software » IRESS Ltd (OTCPK:IRSMF) » Definitions » Profitability Rank

IRESS (IRSMF) Profitability Rank : 9 (As of Dec. 2023)


View and export this data going back to 2012. Start your Free Trial

What is IRESS Profitability Rank?

IRESS has the Profitability Rank of 9. It has a higher profitability and may stay that way.

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

IRESS's Operating Margin % for the quarter that ended in Dec. 2023 was -1.26%. As of today, IRESS's Piotroski F-Score is 4.


Competitive Comparison of IRESS's Profitability Rank

For the Software - Application subindustry, IRESS'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.


IRESS's Profitability Rank Distribution in the Software Industry

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

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



IRESS 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.

IRESS has the Profitability Rank of 9. It has a higher profitability and may stay that way.

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.

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

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-2.625 / 207.775
=-1.26 %

* 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

IRESS 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.

Warning Sign:

IRESS Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -22.6%.

4. Consistency of the profitability

5. Predictability Rank


IRESS Profitability Rank Related Terms

Thank you for viewing the detailed overview of IRESS's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


IRESS (IRSMF) Business Description

Traded in Other Exchanges
Address
385 Bourke Street, Level 16, Melbourne, VIC, AUS, 3000
Iress develops software for the financial-services industry, operating in multiple regions and servicing clients ranging from small retail to large institutional businesses. Its core business unit, mainly in Australia, generates most of the company's earnings and free cash flows. Iress expanded into noncore markets through acquisitions, ultimately eroding returns and margins, with free cash flows from the core business invested in the noncore businesses. Its recent strategy includes reprioritizing growth in the core APAC business and divesting/monetizing noncore businesses. We view this renewed focus on its core business as a positive, as it will help maintain Iress' economic moat.

IRESS (IRSMF) Headlines

From GuruFocus

Half Year 2020 Iress Ltd Earnings Call Transcript

By GuruFocus Research 03-03-2024

Half Year 2019 Iress Ltd Earnings Call Transcript

By GuruFocus Research 03-03-2024

Full Year 2020 Iress Ltd Earnings Call Transcript

By GuruFocus Research 03-03-2024

Iress Ltd Investor Briefing Transcript

By GuruFocus Research 03-03-2024

Iress Ltd Extraordinary Shareholders Meeting Transcript

By GuruFocus Research 03-03-2024

Iress Ltd Annual Shareholders Meeting Transcript

By GuruFocus Research 03-03-2024

Iress Ltd Investor Day Transcript

By GuruFocus Research 03-03-2024

Full Year 2022 Iress Ltd Earnings Call Transcript

By GuruFocus Research 03-03-2024

Q3 2020 Iress Ltd Activities Report Call Transcript

By GuruFocus Research 03-03-2024