M & G Highome Investment Trust (LSE:MGHC) Net Margin %: 4.70% (As of Nov. 2016) — 95% Below Median


What is M & G Highome Investment Trust Net Margin %?

M & G Highome Investment Trust LSE:MGHC Net Margin % is 4.70% as of Nov. 2016, which is 95% below its 10-year median of 98.13. The stock has 3 warning signs investors should review.

Net margin is calculated as Net Income divided by its Revenue. M & G Highome Investment Trust's Net Income for the six months ended in Nov. 2016 was £0.96 Mil. M & G Highome Investment Trust's Revenue for the six months ended in Nov. 2016 was £20.43 Mil. Therefore, M & G Highome Investment Trust's net margin for the quarter that ended in Nov. 2016 was 4.70%.

The historical rank and industry rank for M & G Highome Investment Trust's Net Margin % or its related term are showing as below:

LSE:MGHC' s Net Margin % Range Over the Past 10 Years
Min: -114.09   Med: 98.13   Max: 1805.99
Current: -114.09

LSE:MGHC's Net Margin % is not ranked
in the Asset Management industry.
Industry Median: 84.895 vs LSE:MGHC: -114.09

M & G Highome Investment Trust  (LSE:MGHC) 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.

M & G Highome Investment Trust Net Margin % Related Terms

M & G Highome Investment Trust Net Margin % Historical Data

* Premium members only.

The historical data trend for M & G Highome Investment Trust'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.

M & G Highome Investment Trust Net Margin % Chart

M & G Highome Investment Trust Annual Data
Trend May07 May08 May09 May10 May11 May12 May13 May14 May15 May16
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,805.99 74.85 22.87 -14.58 461.49

M & G Highome Investment Trust Semi-Annual Data
May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14 Nov14 May15 Nov15 May16 Nov16
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 -414.69 29.69 240.24 -1,774.15 4.70

LSE:MGHC vs BKCC, TPVG: Net Margin % Comparison

For the Asset Management subindustry, M & G Highome Investment Trust'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.

M & G Highome Investment Trust Net Margin % vs Asset Management Industry

For the Asset Management industry and Financial Services sector, M & G Highome Investment Trust's Net Margin % distribution charts can be found below:

* The bar in red indicates where M & G Highome Investment Trust's Net Margin % falls into.


M & G Highome Investment Trust 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.

M & G Highome Investment Trust's Net Margin for the fiscal year that ended in May. 2016 is calculated as

Net Margin=Net Income (A: May. 2016 )/Revenue (A: May. 2016 )
=-61.429/-13.311
=461.49 %

M & G Highome Investment Trust's Net Margin for the quarter that ended in Nov. 2016 is calculated as

Net Margin=Net Income (Q: Nov. 2016 )/Revenue (Q: Nov. 2016 )
=0.961/20.431
=4.70 %

* 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 4.70% mean?
M & G Highome Investment Trust (LSE:MGHC) has a Net Margin % of 4.70% as of Nov. 2016. Net margin is the ratio of total net income to net sales. View historical data on M & G Highome Investment Trust and its competitors. This is 95% below median its historical median of 98.13.
Is M & G Highome Investment Trust's Net Margin % too high?
M & G Highome Investment Trust's current Net Margin % of 4.70% is 95% below median its 10-year median of 98.13. The Asset Management industry median Net Margin % is 84.90. M & G Highome Investment Trust's value of 4.70% is 94.5% below this industry median.
How does M & G Highome Investment Trust's Net Margin % compare to BKCC and TPVG?
M & G Highome Investment Trust's Net Margin % of 4.70% can be compared against companies in the Asset Management industry. The industry median Net Margin % is 84.90. M & G Highome Investment Trust's value of 4.70% is 94.5% below this benchmark. While the company's 10-year median is 98.13 vs. the industry median of 84.90, M & G Highome Investment Trust 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 1,576 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. M & G Highome Investment Trust's current Net Margin % of 4.70% is 94.5% 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 M & G Highome Investment Trust 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. M & G Highome Investment Trust's current Net Margin % is 4.70%, which is 95% below median its own 10-year median of 98.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is M & G Highome Investment Trust stock overvalued right now?
M & G Highome Investment Trust (LSE:MGHC) has a current Net Margin % of 4.70%. The current Net Margin % is 4.70%, which is 95% below median its 10-year median of 98.13 and 94.5% 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 M & G Highome Investment Trust (LSE:MGHC), the current Net Margin % is 4.70% as of Nov. 2016. 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.

M & G Highome Investment Trust Business Description

M & G High Income Investment Trust PLC was incorporated in United Kingdom on December 23, 1996. It is a split capital investment trust company with three classes of share: Zero Dividend Preference Shares, Income Shares and Capital Shares. The Company's investment objective is to achieve an above average and increasing income over the 20 year life of the Company and seeking to achieve capital growth.