TDKFRA:TDKA +2.54%81 Net Margin % is 2.24% as of Mar. 2026, which is 62% below its 10-year median of 5.94. GuruFocus rates FRA:TDKA with a GF Score™ of 81/100 and a GF Value™ of €10.51. The stock has 6 warning signs investors should review. Among 2,473 Hardware companies, TDK ranks better than 73.76% on this metric.
Net margin is calculated as Net Income divided by its Revenue. TDK's Net Income for the
three
months ended in Mar. 2026 was €79 Mil. TDK's Revenue for the
three
months ended in Mar. 2026 was €3,523 Mil. Therefore, TDK's net margin for the quarter that ended in Mar. 2026 was 2.24%.
The historical rank and industry rank for TDK's Net Margin % or its related term are showing as below:
FRA:TDKA'
s Net Margin % Range Over the Past 10 Years
Min: 4.24 Med: 5.94 Max: 12.31
Current: 7.81
FRA:TDKA's Net Margin % is ranked better than 73.76% of 2473
companies
in the Hardware industry
Industry Median: 2.7
vs FRA:TDKA: 7.81
TDK (FRA:TDKA) 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.
TDK Net Margin % Related Terms
TDK Net Margin % Historical Data
* Premium members only.
The historical data trend for TDK's Net 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.
FRA:TDKA vs APH, GLW, TEL: Net Margin % Comparison
For the Electronic Components subindustry, TDK'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.
TDK Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, TDK's Net Margin % distribution charts can be found below:
* The bar in red indicates where TDK'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.
TDK (FRA:TDKA) has a Net Margin % of 2.24% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on TDK and its competitors. This is 62% below median its historical median of 5.94. Over the past decade, TDK's Net Margin % has ranged from 4.24 to 12.31. According to the industry distribution chart, TDK ranks #649 out of 2473 companies in the Hardware industry, placing it in the top 26.2%.
Is TDK's Net Margin % too high?
TDK's current Net Margin % of 2.24% is 62% below median its 10-year median of 5.94. Over the past 10 years, this metric has ranged from a low of 4.24 to a high of 12.31. The Hardware industry median Net Margin % is 2.70. TDK's value of 2.24% is 17% below this industry median. Based on the distribution chart, TDK ranks #649 out of 2473 companies in the Hardware industry, which is above the industry midpoint. Overall, TDK has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does TDK's Net Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, TDK ranks #649 out of 2473 companies for Net Margin %. This puts TDK in the upper half of its industry. The industry median Net Margin % is 2.70. TDK's value of 2.24% is 17% below this benchmark. Historically, TDK's own Net Margin % has ranged from 4.24 to 12.31 over the past decade. While the company's 10-year median is 5.94 vs. the industry median of 2.70, TDK 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 Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.70, based on 2,473 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. TDK's current Net Margin % of 2.24% is 17% 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 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 TDK 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. TDK's current Net Margin % is 2.24%, which is 62% below median its own 10-year median of 5.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TDK stock overvalued right now?
TDK (FRA:TDKA) has a current Net Margin % of 2.24%. The stock's GF Value™ is €10.51, compared to a current price of €20.20 — trading 92.2% above its estimated fair value. The current Net Margin % is 2.24%, which is 62% below median its 10-year median of 5.94 and 17% below the Hardware industry median of 2.70. TDK's overall GF Score™ is 81/100 with 6 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 TDK (FRA:TDKA), the current Net Margin % is 2.24% as of Mar. 2026. 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 TDK (FRA:TDKA) Overvalued in 2026?
Based on GuruFocus' analysis, TDK stock appears to be overvalued.
The current stock price of €20.20 is trading 92.2% above its estimated GF Value™ of €10.51.
Key valuation signals for FRA:TDKA:
Net Margin %: 2.24% (62% below median its 10-year median of 5.94)
GF Value™: €10.51 vs. price of €20.20 (92.2% above fair value)
Industry Position: 17% below the Hardware median (#649 of 2473)
No single metric tells the full story. See the FRA:TDKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1935, TDK has its origin in magnetic materials, being the first company to commercialize ferrite in the world, and it used to be known as one of the major cassette-tape manufacturers. TDK is now the only external supplier for magnetic recording heads for hard disk drives, and the company intends to expand its magnetic sensor business for handsets and automobiles by leveraging its expertise. It is also one of the global top suppliers of passive components for autos and polymer rechargeable batteries for smartphones. The company acquired InvenSense in 2017, making it third largest MEMS sensor company in the world.
81GF Score
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