NYSE:WSO
NYSE:WSOTrade Distributors

Watsco (WSO) Net Margin Holds Steady, Testing Premium Valuation Narratives

Watsco (WSO) reported a net profit margin of 6.5%, unchanged from last year. Over the past five years, the company’s earnings have grown at an average annual rate of 11%. However, recent figures point to negative earnings growth, making like-for-like short-term comparisons less straightforward. Looking ahead, analysts expect earnings to increase by 8.49% per year and revenue to expand by 4.1% per year, both slower than the broader US market. Even so, Watsco is considered to have high-quality...
NasdaqGS:GOOGL
NasdaqGS:GOOGLInteractive Media and Services

Google (GOOGL) Margin Expansion Reinforces Bullish Narratives Despite Slower Earnings Growth Than Market

Alphabet (GOOGL) delivered standout results this quarter, with revenue forecast to rise 11.1% annually and earnings expected to grow 9.4% per year, both driven by an impressive net profit margin of 32.2%, up from last year’s 27.7%. Over the past year, earnings jumped 31.8%, outpacing the company’s five-year average annual growth of 17.5%. With margins strengthening and profits accelerating, Alphabet continues to post quality growth, even as the annual earnings outlook trails the broader US...
NYSE:PSA
NYSE:PSASpecialized REITs

Public Storage (PSA): Net Margins Down to 35.2%, Testing Bullish Narratives on Earnings Quality

Public Storage (PSA) reported its net profit margins at 35.2%, marking a slight slip from 36.1% a year ago. Over the past five years, earnings have grown by an average of 4% annually, but most recently, earnings trailed that pace, with negative growth compared to last year. Looking forward, analysts expect the company to book annual earnings growth of 7.2% and revenue growth of 3.3% per year, both lagging the broader US market's forecasts. Despite these modest projections, the company is...
NYSE:CWT
NYSE:CWTWater Utilities

California Water Service Group (CWT) Margin Drop Reinforces Investor Concerns Over Premium Valuation

California Water Service Group (CWT) reported net profit margins of 13.7%, down from 17.8% a year ago, signaling a drop in profitability. Over the last five years, the company’s earnings have grown at an annual rate of 9.9%, and future earnings are forecast to rise by 12.07% per year, though this pace trails the broader US market’s 15.7% projection. With revenue growth expected at 2.9% per year and margins coming under pressure, investors are contending with a stock that trades at a...
NYSE:EPR
NYSE:EPRSpecialized REITs

EPR Properties (EPR): $56.9 Million One-Off Loss Reinforces Bearish Margin Narratives

EPR Properties (EPR) reported net profit margins of 22.2%, down from 26.8% a year earlier, as negative earnings growth and a significant one-off loss of $56.9 million weighed on the bottom line. Revenue is expected to rise at just 2.5% per year, well below the broader US market’s 10.3% forecast. In a challenging environment, investors are left weighing the current margin pressures and non-recurring losses against the stock’s valuation, which currently sits below intrinsic estimates by...
NasdaqGS:OPK
NasdaqGS:OPKHealthcare

OPKO Health (OPK): Persistent Losses Worsen, Valuation Debate Intensifies Ahead of Earnings

OPKO Health (OPK) remains unprofitable, with losses increasing at an annual rate of 25% over the past five years. Despite facing headwinds on the bottom line, the company is forecast to grow revenue at 4.1% annually, trailing the broader US market’s average growth rate of 10.3% per year. Investors are left to weigh persistent losses and slower top-line expansion against valuation indicators that highlight relative value versus peers and the stock’s current trading discount to estimated fair...
ASX:CIA
ASX:CIAMetals and Mining

Champion Iron (ASX:CIA) Net Margin Halves, Challenging Optimistic Recovery Narratives

Champion Iron (ASX:CIA) posted a net profit margin of 7.3%, falling from 15.3% a year ago, while earnings have declined by 24.5% annually over the last five years. With forecast earnings growth of 8.06% per year and revenue projected to increase by 2.2% annually, both of which lag the broader market, the results highlight ongoing margin pressure and multi-year headwinds. This is occurring even as the share price sits below discounted cash flow fair value estimates. See our full analysis for...