SafaricomNAI:SCOM +1.97%100 Net Margin % is 24.18% as of Mar. 2026, which is 5% above its 10-year median of 23.08. GuruFocus rates NAI:SCOM with a GF Score™ of 100/100 and a GF Value™ of KES21.81 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 368 Telecommunication Services companies, Safaricom ranks better than 90.76% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Safaricom's Net Income for the
six
months ended in Mar. 2026 was KES52,829 Mil. Safaricom's Revenue for the
six
months ended in Mar. 2026 was KES218,524 Mil. Therefore, Safaricom's net margin for the quarter that ended in Mar. 2026 was 24.18%.
The historical rank and industry rank for Safaricom's Net Margin % or its related term are showing as below:
NAI:SCOM'
s Net Margin % Range Over the Past 10 Years
Min: 18.04 Med: 23.08 Max: 28.08
Current: 22.71
NAI:SCOM's Net Margin % is ranked better than 90.76% of 368
companies
in the Telecommunication Services industry
Industry Median: 5.455
vs NAI:SCOM: 22.71
Safaricom (NAI:SCOM) 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.
Safaricom Net Margin % Related Terms
Safaricom Net Margin % Historical Data
* Premium members only.
The historical data trend for Safaricom'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 Telecom Services subindustry, Safaricom'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.
Safaricom Net Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Safaricom's Net Margin % distribution charts can be found below:
* The bar in red indicates where Safaricom'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.
Safaricom (NAI:SCOM) has a Net Margin % of 24.18% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Safaricom and its competitors. This is near median its historical median of 23.08. Over the past decade, Safaricom's Net Margin % has ranged from 18.04 to 28.08. According to the industry distribution chart, Safaricom ranks #34 out of 368 companies in the Telecommunication Services industry, placing it in the top 9.2%.
Is Safaricom's Net Margin % too high?
Safaricom's current Net Margin % of 24.18% is near median its 10-year median of 23.08. Over the past 10 years, this metric has ranged from a low of 18.04 to a high of 28.08. The Telecommunication Services industry median Net Margin % is 5.46. Safaricom's value of 24.18% is 343.3% above this industry median. Based on the distribution chart, Safaricom ranks #34 out of 368 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Safaricom has a GF Score™ of 100/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Safaricom's Net Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Safaricom ranks #34 out of 368 companies for Net Margin %. This places Safaricom in the top 9% of its industry — outperforming the majority of peers. The industry median Net Margin % is 5.46. Safaricom's value of 24.18% is 343.3% above this benchmark. Historically, Safaricom's own Net Margin % has ranged from 18.04 to 28.08 over the past decade. While the company's 10-year median is 23.08 vs. the industry median of 5.46, Safaricom 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 Telecommunication Services company?
The median Net Margin % among Telecommunication Services companies is 5.46, based on 368 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. Safaricom's current Net Margin % of 24.18% is 343.3% 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 Safaricom and its competitors. For the Telecommunication Services industry, the median Net Margin % is 5.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safaricom's current Net Margin % is 24.18%, which is near median its own 10-year median of 23.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safaricom stock overvalued right now?
Based on GuruFocus' analysis, Safaricom (NAI:SCOM) is currently considered Significantly Overvalued. The stock's GF Value™ is KES21.81, compared to a current price of KES33.60 — trading 54.1% above its estimated fair value. The current Net Margin % is 24.18%, which is near median its 10-year median of 23.08 and 343.3% above the Telecommunication Services industry median of 5.46. Safaricom's overall GF Score™ is 100/100 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 Safaricom (NAI:SCOM), the current Net Margin % is 24.18% as of Mar. 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 Safaricom (NAI:SCOM) Overvalued in 2026?
Based on GuruFocus' analysis, Safaricom stock appears to be overvalued.
The current stock price of KES33.60 is trading 54.1% above its estimated GF Value™ of KES21.81.
GuruFocus considers Safaricom to be Significantly Overvalued.
Key valuation signals for NAI:SCOM:
Net Margin %: 24.18% (near median its 10-year median of 23.08)
GF Value™: KES21.81 vs. price of KES33.60 (54.1% above fair value)
Industry Position: 343.3% above the Telecommunication Services median (#34 of 368)
No single metric tells the full story. See the NAI:SCOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.
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