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Future MachineHKSE:01401 +7.66%70 Net Margin % is 1.10% as of Dec. 2025, which is 3% below its 10-year median of 1.13. GuruFocus rates HKSE:01401 with a GF Score™ of 70/100 and a GF Value™ of HK$2.12 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,475 Hardware companies, Future Machine ranks worse than 61.74% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Future Machine's Net Income for the
six
months ended in Dec. 2025 was HK$33 Mil. Future Machine's Revenue for the
six
months ended in Dec. 2025 was HK$3,037 Mil. Therefore, Future Machine's net margin for the quarter that ended in Dec. 2025 was 1.10%.
The historical rank and industry rank for Future Machine's Net Margin % or its related term are showing as below:
HKSE:01401'
s Net Margin % Range Over the Past 10 Years
Min: -0.89 Med: 1.13 Max: 1.97
Current: 0.95
HKSE:01401's Net Margin % is ranked worse than 61.74% of 2475
companies
in the Hardware industry
Industry Median: 2.68
vs HKSE:01401: 0.95
Future Machine (HKSE:01401) 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.
Future Machine Net Margin % Related Terms
Future Machine Net Margin % Historical Data
* Premium members only.
The historical data trend for Future Machine'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.
For the Consumer Electronics subindustry, Future Machine'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.
Future Machine Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Future Machine's Net Margin % distribution charts can be found below:
* The bar in red indicates where Future Machine'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.
Future Machine (HKSE:01401) has a Net Margin % of 1.10% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Future Machine and its competitors. This is near median its historical median of 1.13. According to the industry distribution chart, Future Machine ranks #1528 out of 2475 companies in the Hardware industry, placing it in the top 61.7%.
Is Future Machine's Net Margin % too high?
Future Machine's current Net Margin % of 1.10% is near median its 10-year median of 1.13. The Hardware industry median Net Margin % is 2.68. Future Machine's value of 1.10% is 59% below this industry median. Based on the distribution chart, Future Machine ranks #1528 out of 2475 companies in the Hardware industry, which is below the industry midpoint. Overall, Future Machine has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Future Machine's Net Margin % compare to AAPL?
According to the Hardware industry distribution chart, Future Machine ranks #1528 out of 2475 companies for Net Margin %. This places Future Machine in the lower half of its industry. The industry median Net Margin % is 2.68. Future Machine's value of 1.10% is 59% below this benchmark. While the company's 10-year median is 1.13 vs. the industry median of 2.68, Future Machine 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 2.68, based on 2,475 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. Future Machine's current Net Margin % of 1.10% is 59% 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 Future Machine and its competitors. For the Hardware industry, the median Net Margin % is 2.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Future Machine's current Net Margin % is 1.10%, which is near median its own 10-year median of 1.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Future Machine stock overvalued right now?
Based on GuruFocus' analysis, Future Machine (HKSE:01401) is currently considered Possible Value Trap. The stock's GF Value™ is HK$2.12, compared to a current price of HK$0.24 — trading 88.7% below its estimated fair value. The current Net Margin % is 1.10%, which is near median its 10-year median of 1.13 and 59% below the Hardware industry median of 2.68. Future Machine's overall GF Score™ is 70/100 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 Future Machine (HKSE:01401), the current Net Margin % is 1.10% 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 Future Machine (HKSE:01401) Overvalued in 2026?
Based on GuruFocus' analysis, Future Machine stock appears to be undervalued.
The current stock price of HK$0.24 is trading 88.7% below its estimated GF Value™ of HK$2.12.
GuruFocus considers Future Machine to be Possible Value Trap.
Key valuation signals for HKSE:01401:
Net Margin %: 1.10% (near median its 10-year median of 1.13)
GF Value™: HK$2.12 vs. price of HK$0.24 (88.7% below fair value)
Industry Position: 59% below the Hardware median (#1528 of 2475)
No single metric tells the full story. See the HKSE:01401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Future Machine Ltd is an investment holding company. The principal activities of its subsidiaries are designing, manufacturing and sales of mobile phones and printed circuit board assembly products (PCBA) and Internet of things (IoT) related products and investment holding. It generates a majority of its revenue from the sale of feature phones and smartphones. Geographically, the group derives its key revenue from the People's Republic of China (PRC), and also has a presence in India, Pakistan, the United States of America, Bangladesh, Algeria, Yemen, Dubai, and other markets.
70GF Score
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