SDM (Smart Digital Group) Gross Margin %: 11.89% (As of Sep. 2025) — 37% Below Median


SDM Smart Digital Group Ltd SDM
26 GF Score
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What is Smart Digital Group Gross Margin %?

Smart Digital Group SDM -86.41% 26 Gross Margin % is 11.89% as of Sep. 2025, which is 37% below its 10-year median of 18.93. GuruFocus rates SDM with a GF Score™ of 26/100. The stock has 4 warning signs investors should review.

Gross Margin % is calculated as gross profit divided by its revenue. Smart Digital Group's Gross Profit for the six months ended in Sep. 2025 was $2.70 Mil. Smart Digital Group's Revenue for the six months ended in Sep. 2025 was $22.72 Mil. Therefore, Smart Digital Group's Gross Margin % for the quarter that ended in Sep. 2025 was 11.89%.


The historical rank and industry rank for Smart Digital Group's Gross Margin % or its related term are showing as below:

SDM' s Gross Margin % Range Over the Past 10 Years
Min: 10.05   Med: 18.93   Max: 33.1
Current: 10.05


During the past 4 years, the highest Gross Margin % of Smart Digital Group was 33.10%. The lowest was 10.05%. And the median was 18.93%.

SDM's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.9 vs SDM: 10.05

Smart Digital Group had a gross margin of 11.89% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Smart Digital Group was 0.00% per year.


Smart Digital Group  (NAS:SDM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Smart Digital Group had a gross margin of 11.89% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Smart Digital Group Gross Margin % Related Terms


Smart Digital Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for Smart Digital Group's Gross 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.

Smart Digital Group Gross Margin % Chart

Smart Digital Group Annual Data
Trend Sep22 Sep23 Sep24 Sep25
Gross Margin %
24.32 33.10 13.54 10.05

Smart Digital Group Semi-Annual Data
Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
Gross Margin % Get a 7-Day Free Trial 34.51 16.43 11.75 7.16 11.89

SDM vs WIMI, HFUS, FLNT: Gross Margin % Comparison

For the Advertising Agencies subindustry, Smart Digital Group's Gross Margin %, along with its competitors' market caps and Gross 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.


Smart Digital Group Gross Margin % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Smart Digital Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Smart Digital Group's Gross Margin % falls into.


SDM
26GF Score
Smart Digital Group Ltd SDM
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Smart Digital Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Smart Digital Group's Gross Margin for the fiscal year that ended in Sep. 2025 is calculated as

Gross Margin % (A: Sep. 2025 )=Gross Profit (A: Sep. 2025 ) / Revenue (A: Sep. 2025 )
=3.7 / 37.201
=(Revenue - Cost of Goods Sold) / Revenue
=(37.201 - 33.462) / 37.201
=10.05 %

Smart Digital Group's Gross Margin for the quarter that ended in Sep. 2025 is calculated as


Gross Margin % (Q: Sep. 2025 )=Gross Profit (Q: Sep. 2025 ) / Revenue (Q: Sep. 2025 )
=2.7 / 22.718
=(Revenue - Cost of Goods Sold) / Revenue
=(22.718 - 20.016) / 22.718
=11.89 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 11.89% mean?
Smart Digital Group (SDM) has a Gross Margin % of 11.89% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Smart Digital Group and its competitors. This is 37% below median its historical median of 18.93. Over the past decade, Smart Digital Group's Gross Margin % has ranged from 10.05 to 33.10.
Is Smart Digital Group's Gross Margin % too high?
Smart Digital Group's current Gross Margin % of 11.89% is 37% below median its 10-year median of 18.93. Over the past 10 years, this metric has ranged from a low of 10.05 to a high of 33.10. The Media - Diversified industry median Gross Margin % is 38.90. Smart Digital Group's value of 11.89% is 69.4% below this industry median. Overall, Smart Digital Group has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Smart Digital Group's Gross Margin % compare to WIMI and HFUS?
Smart Digital Group's Gross Margin % of 11.89% can be compared against companies in the Media - Diversified industry. The industry median Gross Margin % is 38.90. Smart Digital Group's value of 11.89% is 69.4% below this benchmark. Historically, Smart Digital Group's own Gross Margin % has ranged from 10.05 to 33.10 over the past decade. While the company's 10-year median is 18.93 vs. the industry median of 38.90, Smart Digital Group has consistently been below 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 Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smart Digital Group's current Gross Margin % of 11.89% is 69.4% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Smart Digital Group and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart Digital Group's current Gross Margin % is 11.89%, which is 37% below median its own 10-year median of 18.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart Digital Group stock overvalued right now?
Smart Digital Group (SDM) has a current Gross Margin % of 11.89%. The current Gross Margin % is 11.89%, which is 37% below median its 10-year median of 18.93 and 69.4% below the Media - Diversified industry median of 38.90. Smart Digital Group's overall GF Score™ is 26/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Smart Digital Group (SDM), the current Gross Margin % is 11.89% 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.

Smart Digital Group Business Description

Address No. 2615, Xingsheng 1st Road, Hengqin New District, Guangdong Province, Zhuhai, CHN
Smart Digital Group Ltd is a holding company and operates through subsidiaries. It is engaged in event planning and execution services. The company's services include event planning and execution services, internet media services, software customization and marketing services, and business planning and consulting services. The company generates key revenue from internet media services, which include developing marketing strategies, designing marketing content, distributing such marketing content on select internet platforms, and other related services. It operates in Mainland China, Macau, and Singapore, with maximum revenue coming from Mainland China.
26GF Score

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