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Shenzhen SDMC Technology CoFRA:6RJ +4.85%28 Net Margin % is 7.43% as of Dec. 2025, which is 2% below its 10-year median of 7.59. GuruFocus rates FRA:6RJ with a GF Score™ of 28/100. The stock has 3 warning signs investors should review. Among 2,474 Hardware companies, Shenzhen SDMC Technology Co ranks better than 70.61% on this metric.
Shenzhen SDMC Technology Co (FRA:6RJ) 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.
Shenzhen SDMC Technology Co Net Margin % Related Terms
Shenzhen SDMC Technology Co Net Margin % Historical Data
* 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.
FRA:6RJ vs CSCO, MSI, HPE: Net Margin % Comparison
For the Communication Equipment subindustry, Shenzhen SDMC Technology Co'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.
Shenzhen SDMC Technology Co Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Shenzhen SDMC Technology Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Shenzhen SDMC Technology Co'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.
Shenzhen SDMC Technology Co (FRA:6RJ) has a Net Margin % of 7.43% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Shenzhen SDMC Technology Co and its competitors. This is near median its historical median of 7.59. Over the past decade, Shenzhen SDMC Technology Co's Net Margin % has ranged from 5.40 to 9.92. According to the industry distribution chart, Shenzhen SDMC Technology Co ranks #727 out of 2474 companies in the Hardware industry, placing it in the top 29.4%.
Is Shenzhen SDMC Technology Co's Net Margin % too high?
Shenzhen SDMC Technology Co's current Net Margin % of 7.43% is near median its 10-year median of 7.59. Over the past 10 years, this metric has ranged from a low of 5.40 to a high of 9.92. The Hardware industry median Net Margin % is 2.70. Shenzhen SDMC Technology Co's value of 7.43% is 175.2% above this industry median. Based on the distribution chart, Shenzhen SDMC Technology Co ranks #727 out of 2474 companies in the Hardware industry, which is above the industry midpoint. Overall, Shenzhen SDMC Technology Co has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen SDMC Technology Co's Net Margin % compare to CSCO and MSI?
According to the Hardware industry distribution chart, Shenzhen SDMC Technology Co ranks #727 out of 2474 companies for Net Margin %. This puts Shenzhen SDMC Technology Co in the upper half of its industry. The industry median Net Margin % is 2.70. Shenzhen SDMC Technology Co's value of 7.43% is 175.2% above this benchmark. Historically, Shenzhen SDMC Technology Co's own Net Margin % has ranged from 5.40 to 9.92 over the past decade. While the company's 10-year median is 7.59 vs. the industry median of 2.70, Shenzhen SDMC Technology Co 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 Hardware company?
The median Net Margin % among Hardware companies is 2.70, based on 2,474 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. Shenzhen SDMC Technology Co's current Net Margin % of 7.43% is 175.2% 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 Shenzhen SDMC Technology Co and its competitors. For the Hardware industry, the median Net Margin % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen SDMC Technology Co's current Net Margin % is 7.43%, which is near median its own 10-year median of 7.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen SDMC Technology Co stock overvalued right now?
Shenzhen SDMC Technology Co (FRA:6RJ) has a current Net Margin % of 7.43%. The current Net Margin % is 7.43%, which is near median its 10-year median of 7.59 and 175.2% above the Hardware industry median of 2.70. Shenzhen SDMC Technology Co's overall GF Score™ is 28/100 with 3 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 Shenzhen SDMC Technology Co (FRA:6RJ), the current Net Margin % is 7.43% 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.
Shenzhen SDMC Technology Co Ltd is principally engaged in (i) sales of digital video products and network communication products, and (ii) provision of system platforms and services. The majority of revenue was mainly generated from sales of hardware products, namely digital video devices and network communication devices. Its other hardware products include media streaming terminals, speakers, projectors, cameras, optical network terminals, Wi-Fi routers, and cable modems. The company also develops system platforms including Cedar, XHome, and XMediaTV. Geographically, the maximum revenue is generated from Asia.
28GF Score
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