TowerASX:TWR -0.65%85 Net Margin % is 8.60% as of Mar. 2026, which is 94% above its 10-year median of 4.43. GuruFocus rates ASX:TWR with a GF Score™ of 85/100 and a GF Value™ of A$1.37 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 501 Insurance companies, Tower ranks better than 55.09% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Tower's Net Income for the
six
months ended in Mar. 2026 was A$19.0 Mil. Tower's Revenue for the
six
months ended in Mar. 2026 was A$221.4 Mil. Therefore, Tower's net margin for the quarter that ended in Mar. 2026 was 8.60%.
The historical rank and industry rank for Tower's Net Margin % or its related term are showing as below:
ASX:TWR'
s Net Margin % Range Over the Past 10 Years
Min: -8.39 Med: 4.43 Max: 15.45
Current: 10.52
ASX:TWR's Net Margin % is ranked better than 55.09% of 501
companies
in the Insurance industry
Industry Median: 9.29
vs ASX:TWR: 10.52
Tower (ASX:TWR) 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.
Tower Net Margin % Related Terms
Tower Net Margin % Historical Data
* Premium members only.
The historical data trend for Tower'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 - Property & Casualty subindustry, Tower'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.
Tower Net Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Tower's Net Margin % distribution charts can be found below:
* The bar in red indicates where Tower'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.
Tower (ASX:TWR) has a Net Margin % of 8.60% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Tower and its competitors. This is 94% above median its historical median of 4.43. According to the industry distribution chart, Tower ranks #225 out of 501 companies in the Insurance industry, placing it in the top 44.9%.
Is Tower's Net Margin % too high?
Tower's current Net Margin % of 8.60% is 94% above median its 10-year median of 4.43. The Insurance industry median Net Margin % is 9.29. Tower's value of 8.60% is 7.4% below this industry median. Based on the distribution chart, Tower ranks #225 out of 501 companies in the Insurance industry, which is above the industry midpoint. Overall, Tower has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tower's Net Margin % compare to CB and PGR?
According to the Insurance industry distribution chart, Tower ranks #225 out of 501 companies for Net Margin %. This puts Tower in the upper half of its industry. The industry median Net Margin % is 9.29. Tower's value of 8.60% is 7.4% below this benchmark. While the company's 10-year median is 4.43 vs. the industry median of 9.29, Tower has consistently been below 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. Tower's current Net Margin % of 8.60% is 7.4% below 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 Tower 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. Tower's current Net Margin % is 8.60%, which is 94% above median its own 10-year median of 4.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tower stock overvalued right now?
Based on GuruFocus' analysis, Tower (ASX:TWR) is currently considered Modestly Overvalued. The stock's GF Value™ is A$1.37, compared to a current price of A$1.54 — trading 12.4% above its estimated fair value. The current Net Margin % is 8.60%, which is 94% above median its 10-year median of 4.43 and 7.4% below the Insurance industry median of 9.29. Tower's overall GF Score™ is 85/100 with 3 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 Tower (ASX:TWR), the current Net Margin % is 8.60% as of Mar. 2026. 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 Tower (ASX:TWR) Overvalued in 2026?
Based on GuruFocus' analysis, Tower stock appears to be overvalued.
The current stock price of A$1.54 is trading 12.4% above its estimated GF Value™ of A$1.37.
GuruFocus considers Tower to be Modestly Overvalued.
Key valuation signals for ASX:TWR:
Net Margin %: 8.60% (94% above median its 10-year median of 4.43)
GF Value™: A$1.37 vs. price of A$1.54 (12.4% above fair value)
Industry Position: 7.4% below the Insurance median (#225 of 501)
No single metric tells the full story. See the ASX:TWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tower Ltd is a general insurance company. The company provides insurance services namely car, house, contents, travel, business, boat insurance, and among others. The company has two geographical segments, New Zealand General Insurance, and Pacific Islands General Insurance. The company derives the majority of its revenue from the New Zealand segment.
85GF Score
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