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Hygon Information Technology Co (SHSE:688041) 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.
Hygon Information Technology Co Net Margin % Related Terms
Hygon Information Technology Co 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.
Hygon Information Technology Co Net Margin % Chart
SHSE:688041 vs DELL, ANET, SNDK: Net Margin % Comparison
For the Computer Hardware subindustry, Hygon Information Technology Co'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.
Hygon Information Technology Co Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hygon Information Technology Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hygon Information Technology Co'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.
Hygon Information Technology Co (SHSE:688041) has a Net Margin % of 21.94% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Hygon Information Technology Co and its competitors. This is 47% above median its historical median of 14.92. According to the industry distribution chart, Hygon Information Technology Co ranks #209 out of 2477 companies in the Hardware industry, placing it in the top 8.4%.
Is Hygon Information Technology Co's Net Margin % too high?
Hygon Information Technology Co's current Net Margin % of 21.94% is 47% above median its 10-year median of 14.92. The Hardware industry median Net Margin % is 2.66. Hygon Information Technology Co's value of 21.94% is 724.8% above this industry median. Based on the distribution chart, Hygon Information Technology Co ranks #209 out of 2477 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Hygon Information Technology Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hygon Information Technology Co's Net Margin % compare to DELL and ANET?
According to the Hardware industry distribution chart, Hygon Information Technology Co ranks #209 out of 2477 companies for Net Margin %. This places Hygon Information Technology Co in the top 8% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.66. Hygon Information Technology Co's value of 21.94% is 724.8% above this benchmark. While the company's 10-year median is 14.92 vs. the industry median of 2.66, Hygon Information Technology Co 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 Hardware company?
The median Net Margin % among Hardware companies is 2.66, based on 2,477 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. Hygon Information Technology Co's current Net Margin % of 21.94% is 724.8% 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 Hygon Information Technology Co and its competitors. For the Hardware industry, the median Net Margin % is 2.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hygon Information Technology Co's current Net Margin % is 21.94%, which is 47% above median its own 10-year median of 14.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hygon Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hygon Information Technology Co (SHSE:688041) is currently considered Fairly Valued. The stock's GF Value™ is ¥292.74, compared to a current price of ¥288.80 — trading 1.3% below its estimated fair value. The current Net Margin % is 21.94%, which is 47% above median its 10-year median of 14.92 and 724.8% above the Hardware industry median of 2.66. Hygon Information Technology Co's overall GF Score™ is 85/100 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 Hygon Information Technology Co (SHSE:688041), the current Net Margin % is 21.94% as of Jun. 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 Hygon Information Technology Co (SHSE:688041) Overvalued in 2026?
Based on GuruFocus' analysis, Hygon Information Technology Co stock appears to be undervalued.
The current stock price of ¥288.80 is trading 1.3% below its estimated GF Value™ of ¥292.74.
GuruFocus considers Hygon Information Technology Co to be Fairly Valued.
Key valuation signals for SHSE:688041:
Net Margin %: 21.94% (47% above median its 10-year median of 14.92)
GF Value™: ¥292.74 vs. price of ¥288.80 (1.3% below fair value)
Industry Position: 724.8% above the Hardware median (#209 of 2477)
No single metric tells the full story. See the SHSE:688041 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hygon Information Technology Co Ltd is engaged in the research and development, design, and sales of high-end processors used in computing and storage devices such as servers and workstations. The company's products include Hygon central processing unit (CPU) and Hygon drive control unit (DCU).
85GF Score
Get the complete analysis for SHSE:688041
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