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Pateo Connect Technology (Shanghai) (FRA:E5D) 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.
Pateo Connect Technology (Shanghai) Net Margin % Related Terms
Pateo Connect Technology (Shanghai) 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.
Pateo Connect Technology (Shanghai) Net Margin % Chart
Pateo Connect Technology (Shanghai) Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
Net Margin %
-37.13
-18.98
-21.17
-31.15
Pateo Connect Technology (Shanghai) Semi-Annual Data
Dec22
Dec23
Dec24
Dec25
Net Margin %
-37.13
-18.98
-21.17
-31.15
FRA:E5D vs QH, SHOP, UBER: Net Margin % Comparison
For the Software - Application subindustry, Pateo Connect Technology (Shanghai)'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.
Pateo Connect Technology (Shanghai) Net Margin % vs Software Industry
* 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.
Pateo Connect Technology (Shanghai) (FRA:E5D) has a Net Margin % of -31.15% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Pateo Connect Technology (Shanghai) and its competitors. According to the industry distribution chart, Pateo Connect Technology (Shanghai) ranks #2290 out of 2833 companies in the Software industry, placing it in the top 80.8%.
Is Pateo Connect Technology (Shanghai)'s Net Margin % too high?
Pateo Connect Technology (Shanghai)'s current Net Margin % is -31.15%. Based on the distribution chart, Pateo Connect Technology (Shanghai) ranks #2290 out of 2833 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Pateo Connect Technology (Shanghai) has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Pateo Connect Technology (Shanghai)'s Net Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Pateo Connect Technology (Shanghai) ranks #2290 out of 2833 companies for Net Margin %. This places Pateo Connect Technology (Shanghai) in the lower half of its industry. The industry median Net Margin % is 2.72. 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 Software company?
The median Net Margin % among Software companies is 2.72, based on 2,833 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. 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 Pateo Connect Technology (Shanghai) and its competitors. For the Software industry, the median Net Margin % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pateo Connect Technology (Shanghai)'s current Net Margin % is -31.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pateo Connect Technology (Shanghai) stock overvalued right now?
Pateo Connect Technology (Shanghai) (FRA:E5D) has a current Net Margin % of -31.15%. The current Net Margin % is -31.15%. Pateo Connect Technology (Shanghai)'s overall GF Score™ is 8/100 with 2 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 Pateo Connect Technology (Shanghai) (FRA:E5D), the current Net Margin % is -31.15% 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.
Pateo Connect Technology (Shanghai) Corp is a smart cockpit solution provider in China. The company is a integrated IoV service provider offering active safety systems, automotive electronics, low-level automotive software, intelligent operating system (OS), application software, domestic & international Internet automobile ecosystem, mobile phone connectivity, communications operation, TSP platform development & operation services, cloud computing, big data, content services integration & operation, map engine software & cloud architecture, embedded voice & cloud platform solutions, to AI (Artificial Intelligence). Its segments include Smart cockpit solutions, Vehicle connectivity support services, and Others.
8GF Score
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