SMCSMCAY -1.73%96 Net Margin % is 20.24% as of Dec. 2025, which is 11% below its 10-year median of 22.80. GuruFocus rates SMCAY with a GF Score™ of 96/100 and a GF Value™ of $23.10 (Fairly Valued). The stock has 3 warning signs investors should review. Among 3,039 Industrial Products companies, SMC ranks better than 94.21% on this metric.
Net margin is calculated as Net Income divided by its Revenue. SMC's Net Income for the
three
months ended in Dec. 2025 was $272 Mil. SMC's Revenue for the
three
months ended in Dec. 2025 was $1,345 Mil. Therefore, SMC's net margin for the quarter that ended in Dec. 2025 was 20.24%.
The historical rank and industry rank for SMC's Net Margin % or its related term are showing as below:
SMCAY'
s Net Margin % Range Over the Past 10 Years
Min: 19.74 Med: 22.8 Max: 27.23
Current: 19.86
SMCAY's Net Margin % is ranked better than 94.21% of 3039
companies
in the Industrial Products industry
Industry Median: 4.54
vs SMCAY: 19.86
SMC (OTCPK:SMCAY) 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.
SMC Net Margin % Related Terms
SMC Net Margin % Historical Data
* Premium members only.
The historical data trend for SMC'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 Specialty Industrial Machinery subindustry, SMC'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.
SMC Net Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, SMC's Net Margin % distribution charts can be found below:
* The bar in red indicates where SMC'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.
SMC (SMCAY) has a Net Margin % of 20.24% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on SMC and its competitors. This is 11% below median its historical median of 22.80. Over the past decade, SMC's Net Margin % has ranged from 19.74 to 27.23. According to the industry distribution chart, SMC ranks #176 out of 3039 companies in the Industrial Products industry, placing it in the top 5.8%.
Is SMC's Net Margin % too high?
SMC's current Net Margin % of 20.24% is 11% below median its 10-year median of 22.80. Over the past 10 years, this metric has ranged from a low of 19.74 to a high of 27.23. The Industrial Products industry median Net Margin % is 4.54. SMC's value of 20.24% is 345.8% above this industry median. Based on the distribution chart, SMC ranks #176 out of 3039 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, SMC has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SMC's Net Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, SMC ranks #176 out of 3039 companies for Net Margin %. This places SMC in the top 6% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.54. SMC's value of 20.24% is 345.8% above this benchmark. Historically, SMC's own Net Margin % has ranged from 19.74 to 27.23 over the past decade. While the company's 10-year median is 22.80 vs. the industry median of 4.54, SMC 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 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. SMC's current Net Margin % of 20.24% is 345.8% 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 SMC 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. SMC's current Net Margin % is 20.24%, which is 11% below median its own 10-year median of 22.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMC stock overvalued right now?
Based on GuruFocus' analysis, SMC (SMCAY) is currently considered Fairly Valued. The stock's GF Value™ is $23.10, compared to a current price of $21.55 — trading 6.7% below its estimated fair value. The current Net Margin % is 20.24%, which is 11% below median its 10-year median of 22.80 and 345.8% above the Industrial Products industry median of 4.54. SMC's overall GF Score™ is 96/100 with 3 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 SMC (SMCAY), the current Net Margin % is 20.24% 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 SMC (SMCAY) Overvalued in 2026?
Based on GuruFocus' analysis, SMC stock appears to be undervalued.
The current stock price of $21.55 is trading 6.7% below its estimated GF Value™ of $23.10.
GuruFocus considers SMC to be Fairly Valued.
Key valuation signals for SMCAY:
Net Margin %: 20.24% (11% below median its 10-year median of 22.80)
GF Value™: $23.10 vs. price of $21.55 (6.7% below fair value)
Industry Position: 345.8% above the Industrial Products median (#176 of 3039)
No single metric tells the full story. See the SMCAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMC Corp manufactures automatic control and filtration equipment. Its main products include directional control devices, drive systems, pneumatic auxiliary equipment, temperature regulation units, and sensors. These are utilized across a wide range of industries, including steel, chemicals, food processing, physics, medical devices, and other related fields. The company's products are widely applied across sectors such as steel, chemicals, food processing, physics, medical devices, and other related industries.
96GF Score
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