RakonNZSE:RAK 31 Net Margin % is -5.73% as of Sep. 2025. GuruFocus rates NZSE:RAK with a GF Score™ of 31/100 and a GF Value™ of NZ$0.78 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,039 Industrial Products companies, Rakon ranks worse than 68.58% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Rakon's Net Income for the
six
months ended in Sep. 2025 was NZ$-3.0 Mil. Rakon's Revenue for the
six
months ended in Sep. 2025 was NZ$51.5 Mil. Therefore, Rakon's net margin for the quarter that ended in Sep. 2025 was -5.73%.
The historical rank and industry rank for Rakon's Net Margin % or its related term are showing as below:
NZSE:RAK'
s Net Margin % Range Over the Past 10 Years
Min: -14.31 Med: 3.44 Max: 19.25
Current: 1.35
NZSE:RAK's Net Margin % is ranked worse than 68.58% of 3039
companies
in the Industrial Products industry
Industry Median: 4.54
vs NZSE:RAK: 1.35
Rakon (NZSE:RAK) 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.
Rakon Net Margin % Related Terms
Rakon Net Margin % Historical Data
* Premium members only.
The historical data trend for Rakon'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 Electrical Equipment & Parts subindustry, Rakon'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.
Rakon Net Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rakon's Net Margin % distribution charts can be found below:
* The bar in red indicates where Rakon'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.
Rakon (NZSE:RAK) has a Net Margin % of -5.73% as of Sep. 2025. Net margin is the ratio of total net income to net sales. View historical data on Rakon and its competitors. According to the industry distribution chart, Rakon ranks #2084 out of 3039 companies in the Industrial Products industry, placing it in the top 68.6%.
Is Rakon's Net Margin % too high?
Rakon's current Net Margin % is -5.73%. Based on the distribution chart, Rakon ranks #2084 out of 3039 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Rakon has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rakon's Net Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Rakon ranks #2084 out of 3039 companies for Net Margin %. This places Rakon in the lower half of its industry. The industry median Net Margin % is 4.54. 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 an Industrial Products company?
The median Net Margin % among Industrial Products companies is 4.54, based on 3,039 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 Rakon and its competitors. For the Industrial Products industry, the median Net Margin % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rakon's current Net Margin % is -5.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rakon stock overvalued right now?
Based on GuruFocus' analysis, Rakon (NZSE:RAK) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$0.78, compared to a current price of NZ$1.55 — trading 98.7% above its estimated fair value. The current Net Margin % is -5.73%. Rakon's overall GF Score™ is 31/100 with 5 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 Rakon (NZSE:RAK), the current Net Margin % is -5.73% as of Sep. 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 Rakon (NZSE:RAK) Overvalued in 2026?
Based on GuruFocus' analysis, Rakon stock appears to be overvalued.
The current stock price of NZ$1.55 is trading 98.7% above its estimated GF Value™ of NZ$0.78.
GuruFocus considers Rakon to be Significantly Overvalued.
Key valuation signals for NZSE:RAK:
Net Margin %: -5.73%
GF Value™: NZ$0.78 vs. price of NZ$1.55 (98.7% above fair value)
No single metric tells the full story. See the NZSE:RAK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rakon Ltd is engaged in the development of frequency control products and timing solutions for a wide range of applications. Its core markets are Telecommunications, Space & Defence, and Global Positioning. The company's product range consists of low stability Crystal Oscillators (XO), Voltage Controlled Crystal Oscillators (VCXOs), and crystal products, through to high volume precision Temperature Compensated Crystal Oscillators (TCXOs), Oven Controlled Crystal Oscillators (OCXOs), Digital Pulse Compression Sub-Systems (DPCSS), Surface Acoustic Wave (SAW) oscillators and specialized products. The company's geographical segments are Asia, North America, Europe, and Others.
31GF Score
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