Zip CoASX:ZIP +3.51%62 Net Margin % is 7.95% as of Dec. 2025. GuruFocus rates ASX:ZIP with a GF Score™ of 62/100 and a GF Value™ of A$2.07 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 533 Credit Services companies, Zip Co ranks worse than 62.85% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Zip Co's Net Income for the
six
months ended in Dec. 2025 was A$52 Mil. Zip Co's Revenue for the
six
months ended in Dec. 2025 was A$658 Mil. Therefore, Zip Co's net margin for the quarter that ended in Dec. 2025 was 7.95%.
The historical rank and industry rank for Zip Co's Net Margin % or its related term are showing as below:
ASX:ZIP'
s Net Margin % Range Over the Past 10 Years
Min: -178.24 Med: -55.91 Max: 8.95
Current: 8.95
ASX:ZIP's Net Margin % is ranked worse than 62.85% of 533
companies
in the Credit Services industry
Industry Median: 14.54
vs ASX:ZIP: 8.95
Zip Co (ASX:ZIP) 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.
Zip Co Net Margin % Related Terms
Zip Co Net Margin % Historical Data
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The historical data trend for Zip Co'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 Credit Services subindustry, Zip Co'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.
Zip Co Net Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Zip Co'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.
Zip Co (ASX:ZIP) has a Net Margin % of 7.95% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #335 out of 533 companies in the Credit Services industry, placing it in the top 62.9%.
Is Zip Co's Net Margin % too high?
Zip Co's current Net Margin % is 7.95%. The Credit Services industry median Net Margin % is 14.54. Zip Co's value of 7.95% is 45.3% below this industry median. Based on the distribution chart, Zip Co ranks #335 out of 533 companies in the Credit Services industry, which is below the industry midpoint. Overall, Zip Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Net Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #335 out of 533 companies for Net Margin %. This places Zip Co in the lower half of its industry. The industry median Net Margin % is 14.54. Zip Co's value of 7.95% is 45.3% below this benchmark. 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 a Credit Services company?
The median Net Margin % among Credit Services companies is 14.54, based on 533 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. Zip Co's current Net Margin % of 7.95% is 45.3% 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 Zip Co and its competitors. For the Credit Services industry, the median Net Margin % is 14.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current Net Margin % is 7.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zip Co stock overvalued right now?
Based on GuruFocus' analysis, Zip Co (ASX:ZIP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.07, compared to a current price of A$3.24 — trading 56.5% above its estimated fair value. The current Net Margin % is 7.95% and 45.3% below the Credit Services industry median of 14.54. Zip Co's overall GF Score™ is 62/100 with 7 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 Zip Co (ASX:ZIP), the current Net Margin % is 7.95% 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 Zip Co (ASX:ZIP) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be overvalued.
The current stock price of A$3.24 is trading 56.5% above its estimated GF Value™ of A$2.07.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
Net Margin %: 7.95%
GF Value™: A$2.07 vs. price of A$3.24 (56.5% above fair value)
Industry Position: 45.3% below the Credit Services median (#335 of 533)
No single metric tells the full story. See the ASX:ZIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.
62GF Score
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