SmartgroupSTGXF 88 Net Margin % is 24.35% as of Dec. 2025, which is 1% below its 10-year median of 24.56. GuruFocus rates STGXF with a GF Score™ of 88/100 and a GF Value™ of $4.53. The stock has 6 warning signs investors should review. Among 1,074 Business Services companies, Smartgroup ranks better than 93.2% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Smartgroup's Net Income for the
six
months ended in Dec. 2025 was $27.5 Mil. Smartgroup's Revenue for the
six
months ended in Dec. 2025 was $112.9 Mil. Therefore, Smartgroup's net margin for the quarter that ended in Dec. 2025 was 24.35%.
The historical rank and industry rank for Smartgroup's Net Margin % or its related term are showing as below:
STGXF'
s Net Margin % Range Over the Past 10 Years
Min: 19.1 Med: 24.56 Max: 26.52
Current: 24.23
STGXF's Net Margin % is ranked better than 93.2% of 1074
companies
in the Business Services industry
Industry Median: 3.83
vs STGXF: 24.23
Smartgroup (OTCPK:STGXF) 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.
Smartgroup Net Margin % Related Terms
Smartgroup Net Margin % Historical Data
* Premium members only.
The historical data trend for Smartgroup'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 Specialty Business Services subindustry, Smartgroup'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.
Smartgroup Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Smartgroup's Net Margin % distribution charts can be found below:
* The bar in red indicates where Smartgroup'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.
Smartgroup (STGXF) has a Net Margin % of 24.35% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Smartgroup and its competitors. This is near median its historical median of 24.56. Over the past decade, Smartgroup's Net Margin % has ranged from 19.10 to 26.52. According to the industry distribution chart, Smartgroup ranks #73 out of 1074 companies in the Business Services industry, placing it in the top 6.8%.
Is Smartgroup's Net Margin % too high?
Smartgroup's current Net Margin % of 24.35% is near median its 10-year median of 24.56. Over the past 10 years, this metric has ranged from a low of 19.10 to a high of 26.52. The Business Services industry median Net Margin % is 3.83. Smartgroup's value of 24.35% is 535.8% above this industry median. Based on the distribution chart, Smartgroup ranks #73 out of 1074 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Smartgroup has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Smartgroup's Net Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Smartgroup ranks #73 out of 1074 companies for Net Margin %. This places Smartgroup in the top 7% of its industry — outperforming the majority of peers. The industry median Net Margin % is 3.83. Smartgroup's value of 24.35% is 535.8% above this benchmark. Historically, Smartgroup's own Net Margin % has ranged from 19.10 to 26.52 over the past decade. While the company's 10-year median is 24.56 vs. the industry median of 3.83, Smartgroup 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 Business Services company?
The median Net Margin % among Business Services companies is 3.83, based on 1,074 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. Smartgroup's current Net Margin % of 24.35% is 535.8% 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 Smartgroup and its competitors. For the Business Services industry, the median Net Margin % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smartgroup's current Net Margin % is 24.35%, which is near median its own 10-year median of 24.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smartgroup stock overvalued right now?
Smartgroup (STGXF) has a current Net Margin % of 24.35%. The stock's GF Value™ is $4.53, compared to a current price of $5.82 — trading 28.5% above its estimated fair value. The current Net Margin % is 24.35%, which is near median its 10-year median of 24.56 and 535.8% above the Business Services industry median of 3.83. Smartgroup's overall GF Score™ is 88/100 with 6 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 Smartgroup (STGXF), the current Net Margin % is 24.35% as of Dec. 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 Smartgroup (STGXF) Overvalued in 2026?
Based on GuruFocus' analysis, Smartgroup stock appears to be overvalued.
The current stock price of $5.82 is trading 28.5% above its estimated GF Value™ of $4.53.
Key valuation signals for STGXF:
Net Margin %: 24.35% (near median its 10-year median of 24.56)
GF Value™: $4.53 vs. price of $5.82 (28.5% above fair value)
Industry Position: 535.8% above the Business Services median (#73 of 1074)
No single metric tells the full story. See the STGXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smartgroup Corporation is an Australia-based company that provides specialist employee management services. Its services include salary packaging, novated leasing, vehicle fleet management, payroll administration, employee share plan administration and workforce optimization. The operating segments of the company are: outsourced administration, or OA, and vehicle services, or VS. Most of the group's revenue is generated from the OA segment which provides outsourced salary packaging services, novated leasing, share plan administration and outsourced payroll services. The VS segment provides end-to-end vehicle fleet management services.
88GF Score
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