Kantone HoldingsHKSE:01059 +9.64%52 Net Margin % is 6.20% as of Dec. 2025, which is 99% above its 10-year median of 3.11. GuruFocus rates HKSE:01059 with a GF Score™ of 52/100 and a GF Value™ of HK$0.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,817 Software companies, Kantone Holdings ranks better than 81.97% on this metric.
The historical rank and industry rank for Kantone Holdings's Net Margin % or its related term are showing as below:
HKSE:01059'
s Net Margin % Range Over the Past 10 Years
Min: -1247.09 Med: 3.11 Max: 17.89
Current: 13.36
HKSE:01059's Net Margin % is ranked better than 81.97% of 2817
companies
in the Software industry
Industry Median: 2.61
vs HKSE:01059: 13.36
Kantone Holdings (HKSE:01059) 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.
Kantone Holdings Net Margin % Related Terms
Kantone Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for Kantone Holdings'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.
HKSE:01059 vs IBM, ACN, FISV: Net Margin % Comparison
For the Information Technology Services subindustry, Kantone Holdings'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.
Kantone Holdings Net Margin % vs Software Industry
For the Software industry and Technology sector, Kantone Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Kantone Holdings'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.
Kantone Holdings (HKSE:01059) has a Net Margin % of 6.20% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Kantone Holdings and its competitors. This is 99% above median its historical median of 3.11. According to the industry distribution chart, Kantone Holdings ranks #508 out of 2817 companies in the Software industry, placing it in the top 18%.
Is Kantone Holdings' Net Margin % too high?
Kantone Holdings' current Net Margin % of 6.20% is 99% above median its 10-year median of 3.11. The Software industry median Net Margin % is 2.61. Kantone Holdings' value of 6.20% is 137.5% above this industry median. Based on the distribution chart, Kantone Holdings ranks #508 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Kantone Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kantone Holdings' Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kantone Holdings ranks #508 out of 2817 companies for Net Margin %. This places Kantone Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.61. Kantone Holdings' value of 6.20% is 137.5% above this benchmark. While the company's 10-year median is 3.11 vs. the industry median of 2.61, Kantone Holdings 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 Software company?
The median Net Margin % among Software companies is 2.61, based on 2,817 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. Kantone Holdings's current Net Margin % of 6.20% is 137.5% 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 Kantone Holdings and its competitors. For the Software industry, the median Net Margin % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kantone Holdings's current Net Margin % is 6.20%, which is 99% above median its own 10-year median of 3.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kantone Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kantone Holdings (HKSE:01059) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.46 — trading 82% above its estimated fair value. The current Net Margin % is 6.20%, which is 99% above median its 10-year median of 3.11 and 137.5% above the Software industry median of 2.61. Kantone Holdings' overall GF Score™ is 52/100 with 4 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 Kantone Holdings (HKSE:01059), the current Net Margin % is 6.20% 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 Kantone Holdings (HKSE:01059) Overvalued in 2026?
Based on GuruFocus' analysis, Kantone Holdings stock appears to be overvalued.
The current stock price of HK$0.46 is trading 82% above its estimated GF Value™ of HK$0.25.
GuruFocus considers Kantone Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01059:
Net Margin %: 6.20% (99% above median its 10-year median of 3.11)
GF Value™: HK$0.25 vs. price of HK$0.46 (82% above fair value)
Industry Position: 137.5% above the Software median (#508 of 2817)
No single metric tells the full story. See the HKSE:01059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kantone Holdings Ltd is an investment holding company. The company's operating segment includes Sales of cultural products; Technology: System sales including software licensing and services and Technology: Leasing of system products. It generates maximum revenue from the Technology: System sales including software licensing and services segment. Geographically, it derives a majority of its revenue from Europe (UK and Germany).
52GF Score
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