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Hargreaves Lansdown (LSE:HL.) Profitability Rank : 9 (As of Dec. 2023)


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What is Hargreaves Lansdown Profitability Rank?

Hargreaves Lansdown 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

Hargreaves Lansdown's Operating Margin % for the quarter that ended in Dec. 2023 was 49.59%. As of today, Hargreaves Lansdown's Piotroski F-Score is 7.


Competitive Comparison of Hargreaves Lansdown's Profitability Rank

For the Asset Management subindustry, Hargreaves Lansdown'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.


Hargreaves Lansdown's Profitability Rank Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Hargreaves Lansdown's Profitability Rank distribution charts can be found below:

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



Hargreaves Lansdown 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.

Hargreaves Lansdown 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.

Hargreaves Lansdown'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 )
=182.6 / 368.2
=49.59 %

* 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

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

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

Hargreaves Lansdown has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Hargreaves Lansdown PLC operating margin has been in a 5-year decline. The average rate of decline per year is -5.6%.

4. Consistency of the profitability

5. Predictability Rank


Hargreaves Lansdown Profitability Rank Related Terms

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Hargreaves Lansdown (LSE:HL.) Business Description

Traded in Other Exchanges
Address
Anchor Road, One College Square South, Bristol, GBR, BS1 5HL
Hargreaves Lansdown PLC operates a large direct-to-investor investment service in the United Kingdom built around offerings tailored to client needs. Clients can elect to hold all their funds, stocks, bonds, ETFs, and other financial instruments in a single service with various tax advantages. The company also offers portfolio rebalancing, discretionary services and managed funds, third-party services, savings management, online and apps offerings, and other retirement solutions. The company's clients mostly comprise individual investors and corporate clients. It primarily earns recurring revenue through the administration and management of assets held under its platform, and secondarily earns transactional revenue through stockbroking commissions and initial advisory fees.

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