Smartgroup's underlying net profit after tax adjusted rose 11% in the first half of 2026 versus a year earlier. The EBITDA margin grew 1 percentage point to 41%. However, shares fell 13% on the results release.
As one of the largest salary packaging and novated lease providers in Australia, Smartgroup benefits from some scale advantages. A majority of Smartgroup’s clients are in defensive industries, and the firm has long-standing relationships with many of its clients.
Smartgroup’s business can be disrupted by many external factors beyond its control. Regulation is one example, which has disrupted its commissions and rebate income streams in recent periods. Its business relies on favorable FBT concessions, which may be removed by a future Australian government.
|
Metric
|
SIQ
|
MMS
|
|---|---|---|
Price/Earnings (Normalized) | 16.56 | 11.42 |
Price/Book Value | 5.20 | 10.01 |
Price/Sales | 4.22 | 2.68 |
Price/Cash Flow | 15.31 | 155.98 |
|
Metric
|
SIQ
|
MMS
|
|---|---|---|
Quick Ratio | 1.02 | 0.21 |
Current Ratio | 1.08 | 1.17 |
Interest Coverage | 22.34 | 3.94 |
|
Metric
|
SIQ
|
MMS
|
|---|---|---|
Return on Assets (Normalized) | 12.77% | 6.98% |
Return on Equity (Normalized) | 31.91% | 91.98% |
Return on Invested Capital (Normalized) | 24.45% | 13.51% |
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1-Day Chart
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Morningstar Rating for Stocks
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