The firm struggles with structural profitability, as evidenced by a consistent gross margin hovering around 16.21% and a net margin of only 0.16%.
| Metric | TTM | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 | Oct'95 | Oct'94 |
|---|
| Sales/Revenue | 894.79M | 885.39M | 822.05M | 997.09M | 1.04B | 1.19B | 1.33B | 1.5B | 1.71B | 2.02B | 2.15B | 2.24B | 1.96B | 1.96B | 2.73B | 2.29B | 2.27B | 2.18B | 1.92B | 1.61B | 1.47B | 1.9B | 2.12B | 2.07B | 1.71B | 1.4B | 1.05B | 907.4M | 734.5M |
| Revenue Growth % | 2.92% | 7.7% | -17.55% | -4.05% | -13% | -10.51% | -10.83% | -12.46% | -15.24% | -6.01% | -4.1% | 14.4% | -0.39% | -27.95% | 19.29% | 0.66% | 4.25% | 13.14% | 19.59% | 9.63% | -22.79% | -10.32% | 2.49% | 21.08% | 21.91% | 33.65% | 15.56% | 23.54% | - |
| Cost of Goods Sold | 752.37M | 741.87M | 694.2M | 844.53M | 885.49M | 1.01B | 1.13B | 1.27B | 1.45B | 1.72B | 1.83B | 1.86B | 1.67B | 1.69B | 2.35B | 2.11B | 2.11B | 2.01B | 1.77B | 1.5B | 1.37B | 1.78B | 1.97B | 1.94B | 1.58B | 1.26B | 929.7M | 808.3M | 645.6M |
| COGS % of Revenue | - | 83.79% | 84.45% | 84.7% | 85.21% | 84.31% | 84.83% | 84.73% | 84.88% | 85.34% | 85.13% | 83.33% | 85.43% | 85.99% | 86.32% | 92.26% | 93.05% | 92.51% | 92.07% | 93.36% | 93.39% | 93.59% | 92.68% | 93.55% | 92.2% | 90.15% | 88.66% | 89.08% | 87.9% |
| Gross Profit | 142.41M | 143.52M | 127.85M | 152.56M | 153.68M | 187.4M | 202.49M | 228.53M | 258.54M | 295.8M | 319.2M | 373.2M | 285.12M | 275.2M | 372.9M | 176.8M | 157.8M | 163M | 152.69M | 106.9M | 97.1M | 121.9M | 155.2M | 133.5M | 133.2M | 138.1M | 118.9M | 99.1M | 88.9M |
| Gross Margin % | 15.92% | 16.21% | 15.55% | 15.3% | 14.79% | 15.69% | 15.17% | 15.27% | 15.12% | 14.66% | 14.87% | 16.67% | 14.57% | 14.01% | 13.68% | 7.74% | 6.95% | 7.49% | 7.93% | 6.64% | 6.61% | 6.41% | 7.32% | 6.45% | 7.8% | 9.85% | 11.34% | 10.92% | 12.1% |
| Gross Profit Growth % | - | 12.26% | -16.2% | -0.73% | -17.99% | -7.46% | -11.39% | -11.61% | -12.6% | -7.33% | -14.47% | 30.89% | 3.6% | -26.2% | 110.92% | 12.04% | -3.19% | 6.75% | 42.83% | 10.09% | -20.34% | -21.46% | 16.25% | 0.23% | -3.55% | 16.15% | 19.98% | 11.47% | - |
| Operating Expenses | 136.36M | 135.43M | 137.67M | 162.4M | 182.09M | 148.23M | 208.38M | 241.29M | 253.75M | 303M | 330.3M | 353.4M | 282.54M | 301.5M | 505.7M | 126.1M | 117.2M | 122.4M | 108.66M | 96M | 96.8M | 108.4M | 94.3M | 78.7M | 93.9M | 88.8M | 83.5M | 71.8M | 69M |
| OpEx % of Revenue | - | 15.3% | 16.75% | 16.29% | 17.52% | 12.41% | 15.61% | 16.12% | 14.84% | 15.02% | 15.39% | 15.79% | 14.44% | 15.35% | 18.55% | 5.52% | 5.16% | 5.62% | 5.65% | 5.96% | 6.59% | 5.7% | 4.45% | 3.8% | 5.5% | 6.34% | 7.96% | 7.91% | 9.39% |
| Selling, General & Admin | 136.36M | 135.43M | 137.67M | 157.05M | 173.34M | 197.13M | 203.93M | 231.03M | 251.07M | 301.7M | 334.2M | 302.88M | 281.1M | 288.4M | 91.24M | 102.61M | 97.23M | 92.86M | 83.12M | 71.61M | 74.51M | 83.14M | 93.24M | 76.2M | 62.1M | 54M | 67.2M | 53.9M | 50.9M |
| SG&A % of Revenue | - | 15.3% | 16.75% | 15.75% | 16.68% | 16.5% | 15.28% | 15.43% | 14.68% | 14.95% | 15.57% | 13.53% | 14.37% | 14.68% | 3.35% | 4.49% | 4.28% | 4.26% | 4.32% | 4.45% | 5.08% | 4.37% | 4.4% | 3.68% | 3.63% | 3.85% | 6.41% | 5.94% | 6.93% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.7M | 11.1M | 14.3M | 14.4M | 8.3M | 7.7M |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 0.13% | 0.65% | 1.02% | 1.37% | 0.91% | 1.05% |
| Other Operating Expenses | 0 | 0 | 0 | 5.34M | 8.75M | -48.9M | 4.45M | 10.26M | 2.69M | 1.3M | -3.9M | 50.52M | 1.43M | 13.1M | 414.46M | 23.5M | 19.97M | 29.54M | 25.54M | 24.39M | 22.29M | 25.26M | 1.06M | -200K | 20.7M | 20.5M | 1.9M | 9.6M | 10.4M |
| Operating Income | 1.35M | 4.58M | -30.25M | -11.05M | -28.96M | 34.31M | -9.09M | -16.73M | -10.23M | -26.56M | -8.35M | 18.88M | -31.13M | -25.69M | -36.2M | 55.5M | 43.6M | 29.2M | 49.23M | 7.1M | -35M | 11.3M | 51.2M | 47.9M | 35.8M | 62.7M | 35M | 27.2M | 19.6M |
| Operating Margin % | 0.15% | 0.52% | -3.68% | -1.11% | -2.79% | 2.87% | -0.68% | -1.12% | -0.6% | -1.32% | -0.39% | 0.84% | -1.59% | -1.31% | -1.33% | 2.43% | 1.92% | 1.34% | 2.56% | 0.44% | -2.38% | 0.59% | 2.41% | 2.32% | 2.1% | 4.47% | 3.34% | 3% | 2.67% |
| Operating Income Growth % | - | 115.15% | -173.66% | 61.84% | -184.41% | 477.45% | 45.67% | -63.51% | 61.48% | -218.3% | -144.21% | 160.64% | -21.15% | 29.02% | -165.23% | 27.29% | 49.32% | -40.69% | 593.42% | 120.29% | -409.73% | -77.93% | 6.89% | 33.8% | -42.9% | 79.14% | 28.68% | 38.78% | - |
| EBITDA | 6.36M | 12.14M | -14.65M | -4.1M | -21.75M | 42.34M | -3.12M | -9.92M | -909K | -11.63M | 8.17M | 38.61M | -7.43M | 1.91M | 2.44M | 93.72M | 78.45M | 58.8M | 74.77M | 31.43M | -12.83M | 35.88M | 76.47M | 72M | 56.6M | 83.2M | 51.3M | 40.1M | 31.1M |
| EBITDA Margin % | 0.71% | 1.37% | -1.78% | -0.41% | -2.09% | 3.54% | -0.23% | -0.66% | -0.05% | -0.58% | 0.38% | 1.73% | -0.38% | 0.1% | 0.09% | 4.1% | 3.46% | 2.7% | 3.88% | 1.95% | -0.87% | 1.89% | 3.61% | 3.48% | 3.31% | 5.94% | 4.89% | 4.42% | 4.23% |
| EBITDA Growth % | 190.77% | 182.86% | -257.65% | 81.17% | -151.38% | 1456.46% | 68.54% | -991.2% | 92.18% | -242.4% | -78.85% | 619.31% | -489.68% | -21.67% | -97.4% | 19.47% | 33.41% | -21.35% | 137.89% | 344.9% | -135.77% | -53.08% | 6.21% | 27.21% | -31.97% | 62.18% | 27.93% | 28.94% | - |
| D&A (Non-Cash Add-back) | 5M | 7.56M | 15.59M | 6.96M | 7.21M | 8.03M | 5.97M | 6.81M | 9.32M | 14.93M | 16.51M | 19.73M | 23.69M | 27.6M | 38.64M | 38.22M | 34.85M | 29.6M | 25.54M | 24.33M | 22.17M | 24.58M | 25.27M | 24.1M | 20.8M | 20.5M | 16.3M | 12.9M | 11.5M |
| EBIT | 1.35M | 4.58M | -30.25M | -11.05M | -28.96M | 34.31M | -9.09M | -16.73M | -10.23M | -26.56M | -8.35M | 18.88M | -31.13M | -25.69M | -36.2M | 55.5M | 43.6M | 29.2M | 49.23M | 7.1M | -35M | 11.3M | 51.2M | 47.9M | 35.8M | 62.7M | 35M | 27.2M | 19.6M |
| Net Interest Income | -569K | -1.77M | -2.22M | -2.88M | -2.59M | -3.75M | -3.16M | -2.67M | -3.26M | -2.96M | -2.27M | -2.89M | -1.87M | -2.61M | -99.3M | -9.7M | -10.6M | 100K | -7.1M | 0 | 27.6M | 800K | 700K | 2.5M | 0 | 100K | 700K | 100K | 200K |
| Interest Income | 0 | 37K | 78K | 274K | 173K | 39K | 146K | 572K | 267K | 912K | 592K | 687K | 763K | 1.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 569K | 1.8M | 2.3M | 3.16M | 2.77M | 3.79M | 3.31M | 3.24M | 3.53M | 3.87M | 2.86M | 3.58M | 2.63M | 4.01M | 99.3M | 9.7M | 10.6M | -100K | 7.1M | 0 | -27.6M | -800K | -700K | -2.5M | 0 | -100K | -700K | -100K | -200K |
| Other Income/Expense | -569K | -1.8M | -2.3M | -3.16M | -2.77M | -2.1M | -3.31M | 1.59M | 12.07M | 16.76M | -5.96M | -3.58M | -2.63M | -4.01M | -99.3M | -9.7M | -10.6M | 100K | -7.1M | 0 | 27.6M | 800K | 700K | 2.5M | 0 | 100K | 700K | 100K | 200K |
| Pretax Income | 782K | 2.78M | -32.54M | -14.21M | -31.73M | 32.21M | -12.39M | -15.14M | 1.84M | -9.8M | -14.3M | 15.3M | -33.76M | -29.7M | -135.5M | 45.8M | 33M | 29.3M | 42.13M | 7.1M | -7.4M | 12.1M | 51.9M | 50.4M | 35.8M | 62.8M | 35.7M | 27.3M | 19.8M |
| Pretax Margin % | 0.09% | 0.31% | -3.96% | -1.42% | -3.05% | 2.7% | -0.93% | -1.01% | 0.11% | -0.49% | -0.67% | 0.68% | -1.73% | -1.51% | -4.97% | 2% | 1.45% | 1.35% | 2.19% | 0.44% | -0.5% | 0.64% | 2.45% | 2.44% | 2.1% | 4.48% | 3.4% | 3.01% | 2.7% |
| Income Tax | 1.24M | 1.4M | 1.04M | 978K | 958K | 3.39M | 2.17M | 4.65M | 5.23M | 469K | 2.39M | -300K | 62.61M | -3.5M | -24.5M | 16.2M | 12.9M | 12.2M | 15.52M | 2.9M | -2.3M | 4.8M | 20.5M | 18.9M | 14.9M | 22.8M | 12.7M | 10.9M | 7.8M |
| Effective Tax Rate % | 158.82% | 50.52% | -3.21% | -6.88% | -3.02% | 10.52% | -17.55% | -30.69% | 284.18% | -4.79% | -16.72% | -1.96% | -185.46% | 11.78% | 18.08% | 35.37% | 39.09% | 41.64% | 36.83% | 40.85% | 31.08% | 39.67% | 39.5% | 37.5% | 41.62% | 36.31% | 35.57% | 39.93% | 39.39% |
| Net Income | -460K | 1.37M | -33.59M | -15.19M | -32.69M | 28.82M | -14.57M | -19.79M | -3.39M | -10.27M | -16.69M | 15.6M | -96.38M | -26.2M | -111M | 29.6M | 20.1M | 17.1M | 26.62M | 4.2M | -5.1M | 7.3M | 31.4M | 31.5M | 20.9M | 40M | 23M | 16.4M | 12M |
| Net Margin % | -0.05% | 0.16% | -4.09% | -1.52% | -3.15% | 2.41% | -1.09% | -1.32% | -0.2% | -0.51% | -0.78% | 0.7% | -4.93% | -1.33% | -4.07% | 1.3% | 0.89% | 0.79% | 1.38% | 0.26% | -0.35% | 0.38% | 1.48% | 1.52% | 1.22% | 2.85% | 2.19% | 1.81% | 1.63% |
| Net Income Growth % | 97.89% | 104.09% | -121.17% | 53.54% | -213.39% | 297.84% | 26.36% | -484.17% | 67.02% | 38.48% | -206.99% | 116.19% | -267.84% | 76.4% | -475% | 47.26% | 17.54% | -35.75% | 533.71% | 182.35% | -169.86% | -76.75% | -0.32% | 50.72% | -47.75% | 73.91% | 40.24% | 36.67% | - |
| Net Income (Continuing) | -460K | 1.37M | -33.59M | -15.19M | -32.69M | 28.82M | -14.57M | -19.79M | -3.39M | -10.27M | -16.69M | 15.6M | -96.38M | -26.2M | -111M | 29.6M | 20.1M | 17.1M | 26.62M | 4.2M | -5.1M | 7.3M | 31.4M | 31.5M | 20.9M | 40M | 23M | 16.4M | 12M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.02 | 0.06 | -1.56 | -0.72 | -1.55 | 1.37 | -0.70 | -0.95 | -0.16 | -0.49 | -0.80 | 0.75 | -4.63 | -1.26 | -5.05 | 1.29 | 0.86 | 0.74 | 1.16 | 0.18 | -0.22 | 0.32 | 1.37 | 1.38 | 0.91 | 1.76 | 1.05 | 0.75 | 0.56 |
| EPS Growth % | 97.64% | 103.9% | -116.67% | 53.55% | -213.14% | 295.71% | 26.32% | -493.75% | 67.35% | 38.75% | -206.67% | 116.2% | -267.46% | 75.05% | -491.47% | 50% | 16.22% | -36.21% | 544.44% | 181.82% | -168.75% | -76.64% | -0.72% | 51.65% | -48.3% | 67.62% | 40% | 33.93% | - |
| EPS (Basic) | - | 0.06 | -1.56 | -0.72 | -1.55 | 1.38 | -0.70 | -0.95 | -0.16 | -0.49 | -0.80 | 0.75 | -4.63 | -1.26 | -5.05 | 1.29 | 0.87 | 0.74 | 1.16 | 0.18 | -0.22 | 0.32 | 1.38 | 1.40 | 0.93 | 1.76 | 1.06 | 0.76 | 0.57 |
| Diluted Shares Outstanding | 22.16M | 22.61M | 21.51M | 21.12M | 21.05M | 21.02M | 20.83M | 20.82M | 20.92M | 20.85M | 20.81M | 20.9M | 20.81M | 20.83M | 21.98M | 22.98M | 23.38M | 23.11M | 23.03M | 22.83M | 22.81M | 22.86M | 22.96M | 22.76M | 22.87M | 22.77M | 22M | 21.82M | 21.39M |
| Basic Shares Outstanding | 22.16M | 21.88M | 21.51M | 21.12M | 21.05M | 20.94M | 20.83M | 20.82M | 20.92M | 20.85M | 20.81M | 20.81M | 20.81M | 20.83M | 21.98M | 22.93M | 23.22M | 22.97M | 22.85M | 22.82M | 22.81M | 22.86M | 22.7M | 22.53M | 22.38M | 22.77M | 21.71M | 21.63M | 20.88M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Thin operating margin volatility
As reported in financial statements, Volt's revenue trajectory shows a mixed recovery pattern, with a 7.70% growth rate in recent periods following significant pandemic-era contractions, suggesting that the firm is successfully capturing renewed demand in technical staffing despite broader industrial production volatility and persistent macroeconomic uncertainty.
The revenue growth appears to be highly sensitive to corporate CAPEX cycles, particularly within the aerospace and defense sectors where Volt maintains its core technical footprint. While the recent growth figures indicate a rebound, the historical volatility suggests that revenue durability remains tethered to the timing of large-scale project-based staffing requirements.
According to recent SEC filings, Volt's gross margin has hovered around 16.21%, a level that reflects the inherent limitations of a pass-through labor model where statutory costs and wage inflation exert constant downward pressure on the firm's ability to capture meaningful value from its staffing services.
The margin profile appears structurally constrained by the high variable cost of contingent labor, leaving little room for error in pricing strategy. Investors should monitor whether the company can shift its mix toward higher-margin RPO or MSP services, as the current reliance on transactional staffing limits the potential for significant margin expansion.
Based on Volt's reported figures, the company struggles to demonstrate meaningful operating leverage, as SG&A expenses frequently track closely with gross profit, resulting in an operating margin of only 0.52% that leaves the firm highly vulnerable to even minor fluctuations in billable hours or overhead costs.
The lack of scalability in the operating model suggests that the branch office network and internal recruitment headcount represent significant fixed-cost burdens. Without a fundamental reduction in these overheads, revenue growth may fail to translate into proportional improvements in operating income, keeping the firm in a state of perpetual margin sensitivity.
As indicated by the historical income statement data, the firm's reliance on razor-thin net margins of 0.16% warrants further investigation, as short-term earnings volatility and high debt levels suggest that the business model may lack the necessary buffer to withstand a prolonged downturn in industrial labor demand.
Skeptics might argue that the company's inability to consistently generate positive net income across multiple quarters points to a fundamental lack of pricing power in a commoditized market. The reliance on debt to bridge payroll cycles further complicates the narrative, as rising interest costs could easily overwhelm the company's limited operating profitability.
Quick answers to the most common questions about buying VOLT stock.
For fiscal year 2021, Volt Information Sciences, Inc. (VOLT) reported total revenue of $885.4M. This represents a 20.5% increase compared to $734.5M in 1994.
Volt Information Sciences, Inc. (VOLT) is profitable, generating $1.4M in net income for the fiscal year ending 2021 with a net profit margin of 0.2%.
Volt Information Sciences, Inc. (VOLT) reported an operating income of $4.6M, resulting in an operating profit margin of 0.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Volt Information Sciences, Inc. (VOLT) generated $143.5M in gross profit for the year, representing a gross profit margin of 16.2%. This demonstrates the company's core pricing power and production efficiency.