SIM Technology GroupSIMTF 32 Gross Margin % is 18.77% as of Dec. 2025, which is 40% above its 10-year median of 13.44. GuruFocus rates SIMTF with a GF Score™ of 32/100 and a GF Value™ of $0.01 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,449 Hardware companies, SIM Technology Group ranks worse than 59.82% on this metric.
The historical rank and industry rank for SIM Technology Group's Gross Margin % or its related term are showing as below:
SIMTF'
s Gross Margin % Range Over the Past 10 Years
Min: -1.89 Med: 13.44 Max: 22.12
Current: 20.32
During the past 13 years, the highestGross Margin % of SIM Technology Group was 22.12%. The lowest was -1.89%. And the median was 13.44%.
SIMTF's Gross Margin % is ranked worse than 59.82% of 2449
companies
in the Hardware industry
Industry Median: 24.52
vs SIMTF: 20.32
SIM Technology Group had a gross margin of 18.77% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SIM Technology Group was 0.00% per year.
SIM Technology Group (OTCPK:SIMTF) 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
SIM Technology Group had a gross margin of 18.77% for the quarter that ended in Dec. 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.
SIM Technology Group Gross Margin % Related Terms
SIM Technology Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for SIM Technology 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.
SIMTF vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, SIM Technology 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.
SIM Technology Group Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, SIM Technology Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SIM Technology Group's Gross 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.
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.
SIM Technology Group (SIMTF) has a Gross Margin % of 18.77% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on SIM Technology Group and its competitors. This is 40% above median its historical median of 13.44. According to the industry distribution chart, SIM Technology Group ranks #1465 out of 2449 companies in the Hardware industry, placing it in the top 59.8%.
Is SIM Technology Group's Gross Margin % too high?
SIM Technology Group's current Gross Margin % of 18.77% is 40% above median its 10-year median of 13.44. The Hardware industry median Gross Margin % is 24.52. SIM Technology Group's value of 18.77% is 23.5% below this industry median. Based on the distribution chart, SIM Technology Group ranks #1465 out of 2449 companies in the Hardware industry, which is below the industry midpoint. Overall, SIM Technology Group has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SIM Technology Group's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, SIM Technology Group ranks #1465 out of 2449 companies for Gross Margin %. This places SIM Technology Group in the lower half of its industry. The industry median Gross Margin % is 24.52. SIM Technology Group's value of 18.77% is 23.5% below this benchmark. While the company's 10-year median is 13.44 vs. the industry median of 24.52, SIM Technology 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,449 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. SIM Technology Group's current Gross Margin % of 18.77% is 23.5% 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 SIM Technology Group and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SIM Technology Group's current Gross Margin % is 18.77%, which is 40% above median its own 10-year median of 13.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SIM Technology Group stock overvalued right now?
Based on GuruFocus' analysis, SIM Technology Group (SIMTF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.01, compared to a current price of $0.05 — trading 359% above its estimated fair value. The current Gross Margin % is 18.77%, which is 40% above median its 10-year median of 13.44 and 23.5% below the Hardware industry median of 24.52. SIM Technology Group's overall GF Score™ is 32/100 with 2 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 SIM Technology Group (SIMTF), the current Gross Margin % is 18.77% 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 SIM Technology Group (SIMTF) Overvalued in 2026?
Based on GuruFocus' analysis, SIM Technology Group stock appears to be overvalued.
The current stock price of $0.05 is trading 359% above its estimated GF Value™ of $0.01.
GuruFocus considers SIM Technology Group to be Significantly Overvalued.
Key valuation signals for SIMTF:
Gross Margin %: 18.77% (40% above median its 10-year median of 13.44)
GF Value™: $0.01 vs. price of $0.05 (359% above fair value)
Industry Position: 23.5% below the Hardware median (#1465 of 2449)
No single metric tells the full story. See the SIMTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SIM Technology Group Ltd is a mobile communication and Internet of Things solutions developer. The Group's product offerings include smartphones, tablets, smart wearable devices, IoT terminals (e.g., POS devices, tracking devices, smart systems), industrial IoT and intelligent manufacturing solutions, and vehicle electronics and smart automotive solutions, among others. Its reportable operating segments are: Intelligent terminal ODM business, Automotive intelligent products business, and Property management. The majority of its revenue is generated from the Intelligent terminal ODM business. Geographically, the Group generates maximum revenue from the People's Republic of China (PRC), and the rest from Europe, the United States, Hong Kong, and Other Asian countries.
32GF Score
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