ChallengerASX:CGF -0.30%59 Net Margin % is 35.68% as of Dec. 2025, which is 174% above its 10-year median of 13.04. GuruFocus rates ASX:CGF with a GF Score™ of 59/100 and a GF Value™ of A$4.11 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 501 Insurance companies, Challenger ranks better than 85.63% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Challenger's Net Income for the
six
months ended in Dec. 2025 was A$339 Mil. Challenger's Revenue for the
six
months ended in Dec. 2025 was A$949 Mil. Therefore, Challenger's net margin for the quarter that ended in Dec. 2025 was 35.68%.
The historical rank and industry rank for Challenger's Net Margin % or its related term are showing as below:
ASX:CGF'
s Net Margin % Range Over the Past 10 Years
Min: -29.47 Med: 13.04 Max: 24.6
Current: 22.7
ASX:CGF's Net Margin % is ranked better than 85.63% of 501
companies
in the Insurance industry
Industry Median: 9.29
vs ASX:CGF: 22.70
Challenger (ASX:CGF) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Challenger Net Margin % Related Terms
Challenger Net Margin % Historical Data
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The historical data trend for Challenger's Net Margin % can be seen below:
* 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.
For the Insurance - Life subindustry, Challenger's Net Margin %, along with its competitors' market caps and Net Margin % 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.
Challenger Net Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Challenger's Net Margin % distribution charts can be found below:
* The bar in red indicates where Challenger's Net Margin % falls into.
* 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.
Challenger (ASX:CGF) has a Net Margin % of 35.68% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Challenger and its competitors. This is 174% above median its historical median of 13.04. According to the industry distribution chart, Challenger ranks #72 out of 501 companies in the Insurance industry, placing it in the top 14.4%.
Is Challenger's Net Margin % too high?
Challenger's current Net Margin % of 35.68% is 174% above median its 10-year median of 13.04. The Insurance industry median Net Margin % is 9.29. Challenger's value of 35.68% is 284.1% above this industry median. Based on the distribution chart, Challenger ranks #72 out of 501 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Challenger has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Challenger's Net Margin % compare to AFL and MET?
According to the Insurance industry distribution chart, Challenger ranks #72 out of 501 companies for Net Margin %. This places Challenger in the top 14% of its industry — outperforming the majority of peers. The industry median Net Margin % is 9.29. Challenger's value of 35.68% is 284.1% above this benchmark. While the company's 10-year median is 13.04 vs. the industry median of 9.29, Challenger has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Insurance company?
The median Net Margin % among Insurance companies is 9.29, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Challenger's current Net Margin % of 35.68% is 284.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Challenger and its competitors. For the Insurance industry, the median Net Margin % is 9.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Challenger's current Net Margin % is 35.68%, which is 174% above median its own 10-year median of 13.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Challenger stock overvalued right now?
Based on GuruFocus' analysis, Challenger (ASX:CGF) is currently considered Significantly Overvalued. The stock's GF Value™ is A$4.11, compared to a current price of A$9.82 — trading 138.9% above its estimated fair value. The current Net Margin % is 35.68%, which is 174% above median its 10-year median of 13.04 and 284.1% above the Insurance industry median of 9.29. Challenger's overall GF Score™ is 59/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Challenger (ASX:CGF), the current Net Margin % is 35.68% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Challenger (ASX:CGF) Overvalued in 2026?
Based on GuruFocus' analysis, Challenger stock appears to be overvalued.
The current stock price of A$9.82 is trading 138.9% above its estimated GF Value™ of A$4.11.
GuruFocus considers Challenger to be Significantly Overvalued.
Key valuation signals for ASX:CGF:
Net Margin %: 35.68% (174% above median its 10-year median of 13.04)
GF Value™: A$4.11 vs. price of A$9.82 (138.9% above fair value)
Industry Position: 284.1% above the Insurance median (#72 of 501)
No single metric tells the full story. See the ASX:CGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an upfront lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.
59GF Score
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