Chemring GroupLSE:CHG 86 Net Margin % is 2.57% as of Apr. 2026, which is 65% below its 10-year median of 7.31. GuruFocus rates LSE:CHG with a GF Score™ of 86/100 and a GF Value™ of £4.30 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 347 Aerospace & Defense companies, Chemring Group ranks better than 57.93% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Chemring Group's Net Income for the
six
months ended in Apr. 2026 was £6.1 Mil. Chemring Group's Revenue for the
six
months ended in Apr. 2026 was £237.3 Mil. Therefore, Chemring Group's net margin for the quarter that ended in Apr. 2026 was 2.57%.
The historical rank and industry rank for Chemring Group's Net Margin % or its related term are showing as below:
LSE:CHG'
s Net Margin % Range Over the Past 10 Years
Min: -35.57 Med: 7.31 Max: 11.82
Current: 6.62
LSE:CHG's Net Margin % is ranked better than 57.93% of 347
companies
in the Aerospace & Defense industry
Industry Median: 4.9
vs LSE:CHG: 6.62
Chemring Group (LSE:CHG) 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.
Chemring Group Net Margin % Related Terms
Chemring Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Chemring 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.
For the Aerospace & Defense subindustry, Chemring 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.
Chemring Group Net Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Chemring Group'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.
Chemring Group (LSE:CHG) has a Net Margin % of 2.57% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Chemring Group and its competitors. This is 65% below median its historical median of 7.31. According to the industry distribution chart, Chemring Group ranks #146 out of 347 companies in the Aerospace & Defense industry, placing it in the top 42.1%.
Is Chemring Group's Net Margin % too high?
Chemring Group's current Net Margin % of 2.57% is 65% below median its 10-year median of 7.31. The Aerospace & Defense industry median Net Margin % is 4.90. Chemring Group's value of 2.57% is 47.6% below this industry median. Based on the distribution chart, Chemring Group ranks #146 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Chemring Group has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Net Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #146 out of 347 companies for Net Margin %. This puts Chemring Group in the upper half of its industry. The industry median Net Margin % is 4.90. Chemring Group's value of 2.57% is 47.6% below this benchmark. While the company's 10-year median is 7.31 vs. the industry median of 4.90, Chemring 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 Aerospace & Defense company?
The median Net Margin % among Aerospace & Defense companies is 4.90, based on 347 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. Chemring Group's current Net Margin % of 2.57% is 47.6% 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 Chemring Group and its competitors. For the Aerospace & Defense industry, the median Net Margin % is 4.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current Net Margin % is 2.57%, which is 65% below median its own 10-year median of 7.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Modestly Overvalued. The stock's GF Value™ is £4.30, compared to a current price of £4.81 — trading 11.9% above its estimated fair value. The current Net Margin % is 2.57%, which is 65% below median its 10-year median of 7.31 and 47.6% below the Aerospace & Defense industry median of 4.90. Chemring Group's overall GF Score™ is 86/100 with 4 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 Chemring Group (LSE:CHG), the current Net Margin % is 2.57% as of Apr. 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 Chemring Group (LSE:CHG) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of £4.81 is trading 11.9% above its estimated GF Value™ of £4.30.
GuruFocus considers Chemring Group to be Modestly Overvalued.
Key valuation signals for LSE:CHG:
Net Margin %: 2.57% (65% below median its 10-year median of 7.31)
GF Value™: £4.30 vs. price of £4.81 (11.9% above fair value)
Industry Position: 47.6% below the Aerospace & Defense median (#146 of 347)
No single metric tells the full story. See the LSE:CHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
86GF Score
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