Avanta Serviced Office Group (LSE:ASOA) Net Margin %: 4.62% (As of Jun. 2014) — 52% Below Median


What is Avanta Serviced Office Group Net Margin %?

Avanta Serviced Office Group LSE:ASOA Net Margin % is 4.62% as of Jun. 2014, which is 52% below its 10-year median of 9.56. The stock has 3 warning signs investors should review.

Net margin is calculated as Net Income divided by its Revenue. Avanta Serviced Office Group's Net Income for the six months ended in Jun. 2014 was £1.37 Mil. Avanta Serviced Office Group's Revenue for the six months ended in Jun. 2014 was £29.66 Mil. Therefore, Avanta Serviced Office Group's net margin for the quarter that ended in Jun. 2014 was 4.62%.

The historical rank and industry rank for Avanta Serviced Office Group's Net Margin % or its related term are showing as below:

LSE:ASOA' s Net Margin % Range Over the Past 10 Years
Min: -80.48   Med: 9.56   Max: 36.12
Current: -1.96

LSE:ASOA's Net Margin % is not ranked
in the Asset Management industry.
Industry Median: 84.895 vs LSE:ASOA: -1.96

Avanta Serviced Office Group  (LSE:ASOA) 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.

Avanta Serviced Office Group Net Margin % Related Terms

Avanta Serviced Office Group Net Margin % Historical Data

* Premium members only.

The historical data trend for Avanta Serviced Office Group'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.

Avanta Serviced Office Group Net Margin % Chart

Avanta Serviced Office Group Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.64 13.51 -71.30 36.12 -11.70

Avanta Serviced Office Group Semi-Annual Data
Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.68 90.89 -16.58 -10.25 4.62

LSE:ASOA vs AINC, HCAP, OCCAF: Net Margin % Comparison

For the Asset Management subindustry, Avanta Serviced Office Group'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.

Avanta Serviced Office Group Net Margin % vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Avanta Serviced Office Group's Net Margin % distribution charts can be found below:

* The bar in red indicates where Avanta Serviced Office Group's Net Margin % falls into.


Avanta Serviced Office Group Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Avanta Serviced Office Group's Net Margin for the fiscal year that ended in Dec. 2013 is calculated as

Net Margin=Net Income (A: Dec. 2013 )/Revenue (A: Dec. 2013 )
=-3.575/30.548
=-11.70 %

Avanta Serviced Office Group's Net Margin for the quarter that ended in Jun. 2014 is calculated as

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=1.369/29.662
=4.62 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 4.62% mean?
Avanta Serviced Office Group (LSE:ASOA) has a Net Margin % of 4.62% as of Jun. 2014. Net margin is the ratio of total net income to net sales. View historical data on Avanta Serviced Office Group and its competitors. This is 52% below median its historical median of 9.56.
Is Avanta Serviced Office Group's Net Margin % too high?
Avanta Serviced Office Group's current Net Margin % of 4.62% is 52% below median its 10-year median of 9.56. The Asset Management industry median Net Margin % is 84.90. Avanta Serviced Office Group's value of 4.62% is 94.6% below this industry median.
How does Avanta Serviced Office Group's Net Margin % compare to AINC and HCAP?
Avanta Serviced Office Group's Net Margin % of 4.62% can be compared against companies in the Asset Management industry. The industry median Net Margin % is 84.90. Avanta Serviced Office Group's value of 4.62% is 94.6% below this benchmark. While the company's 10-year median is 9.56 vs. the industry median of 84.90, Avanta Serviced Office Group 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 Asset Management company?
The median Net Margin % among Asset Management companies is 84.90, based on 1,580 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. Avanta Serviced Office Group's current Net Margin % of 4.62% is 94.6% 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 Avanta Serviced Office Group and its competitors. For the Asset Management industry, the median Net Margin % is 84.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanta Serviced Office Group's current Net Margin % is 4.62%, which is 52% below median its own 10-year median of 9.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanta Serviced Office Group stock overvalued right now?
Avanta Serviced Office Group (LSE:ASOA) has a current Net Margin % of 4.62%. The current Net Margin % is 4.62%, which is 52% below median its 10-year median of 9.56 and 94.6% below the Asset Management industry median of 84.90. 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 Avanta Serviced Office Group (LSE:ASOA), the current Net Margin % is 4.62% as of Jun. 2014. 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.

Avanta Serviced Office Group Business Description

Serviced Office Group PLC is engaged in the ownership and operation of serviced office accommodation. Its reportable segments are Serviced office business and Managed serviced offices. Serviced office business undertaken in the group's freehold and leasehold properties; and Managed serviced office business undertaken under management contracts on behalf of third parties. The Group operates solely from the UK.