Cegid Group (LTS:0RIY) Net Margin %: 12.23% (As of Dec. 2016) — 68% Above Median


What is Cegid Group Net Margin %?

Cegid Group LTS:0RIY Net Margin % is 12.23% as of Dec. 2016, which is 68% above its 10-year median of 7.28. The stock has 4 warning signs investors should review.

Net margin is calculated as Net Income divided by its Revenue. Cegid Group's Net Income for the six months ended in Dec. 2016 was €19.22 Mil. Cegid Group's Revenue for the six months ended in Dec. 2016 was €157.10 Mil. Therefore, Cegid Group's net margin for the quarter that ended in Dec. 2016 was 12.23%.

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

LTS:0RIY' s Net Margin % Range Over the Past 10 Years
Min: 4.88   Med: 7.28   Max: 9.31
Current: 9.31

LTS:0RIY's Net Margin % is not ranked
in the Software industry.
Industry Median: 2.54 vs LTS:0RIY: 9.31

Cegid Group  (LTS:0RIY) 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.

Cegid Group Net Margin % Related Terms

Cegid Group Net Margin % Historical Data

* Premium members only.

The historical data trend for Cegid 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.

Cegid Group Net Margin % Chart

Cegid Group Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.88 7.22 8.31 8.23 9.31

Cegid Group Semi-Annual Data
Dec05 Dec06 Dec07 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
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 9.92 7.05 9.29 6.26 12.23

LTS:0RIY vs TYPE, MTLS, TIVO: Net Margin % Comparison

For the Software - Application subindustry, Cegid 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.

Cegid Group Net Margin % vs Software Industry

For the Software industry and Technology sector, Cegid Group's Net Margin % distribution charts can be found below:

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


Cegid 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.

Cegid Group's Net Margin for the fiscal year that ended in Dec. 2016 is calculated as

Net Margin=Net Income (A: Dec. 2016 )/Revenue (A: Dec. 2016 )
=28.647/307.592
=9.31 %

Cegid Group's Net Margin for the quarter that ended in Dec. 2016 is calculated as

Net Margin=Net Income (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )
=19.219/157.102
=12.23 %

* 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 12.23% mean?
Cegid Group (LTS:0RIY) has a Net Margin % of 12.23% as of Dec. 2016. Net margin is the ratio of total net income to net sales. View historical data on Cegid Group and its competitors. This is 68% above median its historical median of 7.28. Over the past decade, Cegid Group's Net Margin % has ranged from 4.88 to 9.31.
Is Cegid Group's Net Margin % too high?
Cegid Group's current Net Margin % of 12.23% is 68% above median its 10-year median of 7.28. Over the past 10 years, this metric has ranged from a low of 4.88 to a high of 9.31. The Software industry median Net Margin % is 2.54. Cegid Group's value of 12.23% is 381.5% above this industry median.
How does Cegid Group's Net Margin % compare to TYPE and MTLS?
Cegid Group's Net Margin % of 12.23% can be compared against companies in the Software industry. The industry median Net Margin % is 2.54. Cegid Group's value of 12.23% is 381.5% above this benchmark. Historically, Cegid Group's own Net Margin % has ranged from 4.88 to 9.31 over the past decade. While the company's 10-year median is 7.28 vs. the industry median of 2.54, Cegid Group has consistently been above 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 a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,827 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. Cegid Group's current Net Margin % of 12.23% is 381.5% above 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 Cegid Group and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cegid Group's current Net Margin % is 12.23%, which is 68% above median its own 10-year median of 7.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cegid Group stock overvalued right now?
Cegid Group (LTS:0RIY) has a current Net Margin % of 12.23%. The current Net Margin % is 12.23%, which is 68% above median its 10-year median of 7.28 and 381.5% above the Software industry median of 2.54. 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 Cegid Group (LTS:0RIY), the current Net Margin % is 12.23% as of Dec. 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.

Cegid Group Business Description

Cegid Group SA is engaged in the development, hosting, sell and distribution of business management software and related goods and services. It serves the finance, taxation, human resources, public, retail, manufacturing, services, trade, and accounting profession sectors, as well as startups and small businesses. Geographically business activity of the group is based in France.