Smartgroup (FRA:SW8) Profitability Rank: 10 (As of Dec. 2025) — 11% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:SW8 Smartgroup Corporation Ltd FRA:SW8
88 GF Score
Price €7.80
GF Value €5.93
! 6 Warning Signs
View Full Analysis

What is Smartgroup Profitability Rank?

Smartgroup FRA:SW8 +4.00% 88 Profitability Rank is 10 as of Dec. 2025, which is 11% above its 10-year median of 9.00. GuruFocus rates FRA:SW8 with a GF Score™ of 88/100 and a GF Value™ of €5.93. The stock has 6 warning signs investors should review.

Smartgroup has the Profitability Rank of 10. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Smartgroup's Operating Margin % for the quarter that ended in Dec. 2025 was 37.05%. As of today, Smartgroup's Piotroski F-Score is 7.


Smartgroup Profitability Rank Related Terms


FRA:SW8 vs CTAS, CPRT, ULS: Profitability Rank Comparison

For the Specialty Business Services subindustry, Smartgroup's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Business Services Industry

For the Business Services industry and Industrials sector, Smartgroup's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Smartgroup's Profitability Rank falls into.


FRA:SW8
88GF Score
Smartgroup Corporation Ltd FRA:SW8
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Smartgroup Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Smartgroup has the Profitability Rank of 10. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Smartgroup's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=35.715 / 96.391
=37.05 %

* 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.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Smartgroup has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Smartgroup Corporation Ltd operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 10 mean?
Smartgroup (FRA:SW8) has a Profitability Rank of 10 as of Dec. 2025. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Smartgroup and its competitors. This is 11% above median its historical median of 9.00. Over the past decade, Smartgroup's Profitability Rank has ranged from 8.00 to 10.00.
Is Smartgroup's Profitability Rank too high?
Smartgroup's current Profitability Rank of 10 is 11% above median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. Overall, Smartgroup has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Smartgroup's Profitability Rank compare to CTAS and CPRT?
Smartgroup's Profitability Rank of 10 can be compared against companies in the Business Services industry. Historically, Smartgroup's own Profitability Rank has ranged from 8.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Business Services company?
A good Profitability Rank depends on the Business Services industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Smartgroup and its competitors. Smartgroup's current Profitability Rank is 10, which is 11% above median its own 10-year median of 9.00. 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 (FRA:SW8) has a current Profitability Rank of 10. The stock's GF Value™ is €5.93, compared to a current price of €7.80 — trading 31.5% above its estimated fair value. The current Profitability Rank is 10, which is 11% above median its 10-year median of 9.00. 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 Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Smartgroup (FRA:SW8), the current Profitability Rank is 10 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 (FRA:SW8) Overvalued in 2026?

Based on GuruFocus' analysis, Smartgroup stock appears to be overvalued. The current stock price of €7.80 is trading 31.5% above its estimated GF Value™ of €5.93.

Key valuation signals for FRA:SW8:

  • Profitability Rank: 10 (11% above median its 10-year median of 9.00)
  • GF Value™: €5.93 vs. price of €7.80 (31.5% above fair value)
  • GF Score™: 88/100 with 6 warning signs

No single metric tells the full story. See the FRA:SW8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Smartgroup Business Description

Other Exchanges SIQ:Australia
Address 201 Sussex Street, Level 15, Darling Park Tower 2, Sydney, NSW, AUS, 2000
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

Get the complete analysis for FRA:SW8

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€7.80
Price
€5.93
GF Value