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Sapiens International NV (NAS:SPNS) 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.
Sapiens International NV Net Margin % Related Terms
Sapiens International NV Net Margin % Historical Data
* 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 Software - Application subindustry, Sapiens International NV'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.
Sapiens International NV Net Margin % vs Software Industry
For the Software industry and Technology sector, Sapiens International NV's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sapiens International NV'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.
Sapiens International NV (SPNS) has a Net Margin % of 9.39% as of Sep. 2025. Net margin is the ratio of total net income to net sales. View historical data on Sapiens International NV and its competitors. This is near median its historical median of 9.59. Over the past decade, Sapiens International NV's Net Margin % has ranged from 0.13 to 13.31.
Is Sapiens International NV's Net Margin % too high?
Sapiens International NV's current Net Margin % of 9.39% is near median its 10-year median of 9.59. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 13.31. The Software industry median Net Margin % is 2.63. Sapiens International NV's value of 9.39% is 257% above this industry median. Overall, Sapiens International NV has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Sapiens International NV's Net Margin % compare to ALKT and VIA?
Sapiens International NV's Net Margin % of 9.39% can be compared against companies in the Software industry. The industry median Net Margin % is 2.63. Sapiens International NV's value of 9.39% is 257% above this benchmark. Historically, Sapiens International NV's own Net Margin % has ranged from 0.13 to 13.31 over the past decade. While the company's 10-year median is 9.59 vs. the industry median of 2.63, Sapiens International NV 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 2.63, based on 2,834 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. Sapiens International NV's current Net Margin % of 9.39% is 257% 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 Sapiens International NV and its competitors. For the Software industry, the median Net Margin % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sapiens International NV's current Net Margin % is 9.39%, which is near median its own 10-year median of 9.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sapiens International NV stock overvalued right now?
Sapiens International NV (SPNS) has a current Net Margin % of 9.39%. The stock's GF Value™ is $31.47, compared to a current price of $43.45 — trading 38.1% above its estimated fair value. The current Net Margin % is 9.39%, which is near median its 10-year median of 9.59 and 257% above the Software industry median of 2.63. Sapiens International NV's overall GF Score™ is 75/100 with 5 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 Sapiens International NV (SPNS), the current Net Margin % is 9.39% as of Sep. 2025. 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 Sapiens International NV (SPNS) Overvalued in 2026?
Based on GuruFocus' analysis, Sapiens International NV stock appears to be overvalued.
The current stock price of $43.45 is trading 38.1% above its estimated GF Value™ of $31.47.
Key valuation signals for SPNS:
Net Margin %: 9.39% (near median its 10-year median of 9.59)
GF Value™: $31.47 vs. price of $43.45 (38.1% above fair value)
No single metric tells the full story. See the SPNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sapiens International Corp NV is a provider of software solutions for the insurance industry, with an emerging focus on the financial services sector. The company offers software, solutions, and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&A); workers' compensation (WC); medical professional liability (MPL); financial & compliance (F&C); and decision modeling for both insurance and financial markets. The group also provides services for project delivery and implementation services, for its Software Solutions portfolio. Geographically, it operates in the region of North America, Rest of the World, and Europe. It generates revenue from Europe.
75GF Score
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