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Elitegroup Computer Systems Co (TPE:2331) 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.
Elitegroup Computer Systems Co Net Margin % Related Terms
Elitegroup Computer Systems 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.
TPE:2331 vs DELL, ANET, SNDK: Net Margin % Comparison
For the Computer Hardware subindustry, Elitegroup Computer Systems 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.
Elitegroup Computer Systems Co Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Elitegroup Computer Systems Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Elitegroup Computer Systems 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.
Elitegroup Computer Systems Co (TPE:2331) has a Net Margin % of 1.25% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Elitegroup Computer Systems Co and its competitors. This is 443% above median its historical median of 0.23. According to the industry distribution chart, Elitegroup Computer Systems Co ranks #1484 out of 2478 companies in the Hardware industry, placing it in the top 59.9%.
Is Elitegroup Computer Systems Co's Net Margin % too high?
Elitegroup Computer Systems Co's current Net Margin % of 1.25% is 443% above median its 10-year median of 0.23. The Hardware industry median Net Margin % is 2.85. Elitegroup Computer Systems Co's value of 1.25% is 56.1% below this industry median. Based on the distribution chart, Elitegroup Computer Systems Co ranks #1484 out of 2478 companies in the Hardware industry, which is below the industry midpoint. Overall, Elitegroup Computer Systems Co has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Elitegroup Computer Systems Co's Net Margin % compare to DELL and ANET?
According to the Hardware industry distribution chart, Elitegroup Computer Systems Co ranks #1484 out of 2478 companies for Net Margin %. This places Elitegroup Computer Systems Co in the lower half of its industry. The industry median Net Margin % is 2.85. Elitegroup Computer Systems Co's value of 1.25% is 56.1% below this benchmark. While the company's 10-year median is 0.23 vs. the industry median of 2.85, Elitegroup Computer Systems Co 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 2.85, based on 2,478 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. Elitegroup Computer Systems Co's current Net Margin % of 1.25% is 56.1% 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 Elitegroup Computer Systems Co and its competitors. For the Hardware industry, the median Net Margin % is 2.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elitegroup Computer Systems Co's current Net Margin % is 1.25%, which is 443% above median its own 10-year median of 0.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elitegroup Computer Systems Co stock overvalued right now?
Based on GuruFocus' analysis, Elitegroup Computer Systems Co (TPE:2331) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$24.78, compared to a current price of NT$19.50 — trading 21.3% below its estimated fair value. The current Net Margin % is 1.25%, which is 443% above median its 10-year median of 0.23 and 56.1% below the Hardware industry median of 2.85. Elitegroup Computer Systems Co's overall GF Score™ is 71/100 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 Elitegroup Computer Systems Co (TPE:2331), the current Net Margin % is 1.25% as of Mar. 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 Elitegroup Computer Systems Co (TPE:2331) Overvalued in 2026?
Based on GuruFocus' analysis, Elitegroup Computer Systems Co stock appears to be undervalued.
The current stock price of NT$19.50 is trading 21.3% below its estimated GF Value™ of NT$24.78.
GuruFocus considers Elitegroup Computer Systems Co to be Modestly Undervalued.
Key valuation signals for TPE:2331:
Net Margin %: 1.25% (443% above median its 10-year median of 0.23)
GF Value™: NT$24.78 vs. price of NT$19.50 (21.3% below fair value)
Industry Position: 56.1% below the Hardware median (#1484 of 2478)
No single metric tells the full story. See the TPE:2331 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elitegroup Computer Systems Co Ltd designs, develops, and sells motherboards, desktop computers, notebook computers, tablet computers, barebone systems, and add-on cards. Its products include Mini PC, Motherboard, Laptop, AIO PC, Gaming PC, IPC, and CubeSat. It operates in Asia, which generates maximum revenue, as well as America, Europe, and Others.
71GF Score
Get the complete analysis for TPE:2331
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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