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Test Rite International CoTPE:2908 -0.22%66 Net Margin % is 4.21% as of Jun. 2026, which is 290% above its 10-year median of 1.08. GuruFocus rates TPE:2908 with a GF Score™ of 66/100 and a GF Value™ of NT$19.34 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,125 Retail - Cyclical companies, Test Rite International Co ranks worse than 55.73% on this metric.
Test Rite International Co (TPE:2908) 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.
Test Rite International Co Net Margin % Related Terms
Test Rite International 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.
For the Home Improvement Retail subindustry, Test Rite International 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.
Test Rite International Co Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Test Rite International Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Test Rite International 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.
Test Rite International Co (TPE:2908) has a Net Margin % of 4.21% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Test Rite International Co and its competitors. This is 290% above median its historical median of 1.08. Over the past decade, Test Rite International Co's Net Margin % has ranged from 0.26 to 2.23. According to the industry distribution chart, Test Rite International Co ranks #627 out of 1125 companies in the Retail - Cyclical industry, placing it in the top 55.7%.
Is Test Rite International Co's Net Margin % too high?
Test Rite International Co's current Net Margin % of 4.21% is 290% above median its 10-year median of 1.08. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 2.23. The Retail - Cyclical industry median Net Margin % is 2.39. Test Rite International Co's value of 4.21% is 76.2% above this industry median. Based on the distribution chart, Test Rite International Co ranks #627 out of 1125 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Test Rite International Co has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Test Rite International Co's Net Margin % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Test Rite International Co ranks #627 out of 1125 companies for Net Margin %. This places Test Rite International Co in the lower half of its industry. The industry median Net Margin % is 2.39. Test Rite International Co's value of 4.21% is 76.2% above this benchmark. Historically, Test Rite International Co's own Net Margin % has ranged from 0.26 to 2.23 over the past decade. While the company's 10-year median is 1.08 vs. the industry median of 2.39, Test Rite International 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 Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.39, based on 1,125 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. Test Rite International Co's current Net Margin % of 4.21% is 76.2% 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 Test Rite International Co and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Test Rite International Co's current Net Margin % is 4.21%, which is 290% above median its own 10-year median of 1.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Test Rite International Co stock overvalued right now?
Based on GuruFocus' analysis, Test Rite International Co (TPE:2908) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$19.34, compared to a current price of NT$22.20 — trading 14.8% above its estimated fair value. The current Net Margin % is 4.21%, which is 290% above median its 10-year median of 1.08 and 76.2% above the Retail - Cyclical industry median of 2.39. Test Rite International Co's overall GF Score™ is 66/100 with 8 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 Test Rite International Co (TPE:2908), the current Net Margin % is 4.21% 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 Test Rite International Co (TPE:2908) Overvalued in 2026?
Based on GuruFocus' analysis, Test Rite International Co stock appears to be overvalued.
The current stock price of NT$22.20 is trading 14.8% above its estimated GF Value™ of NT$19.34.
GuruFocus considers Test Rite International Co to be Modestly Overvalued.
Key valuation signals for TPE:2908:
Net Margin %: 4.21% (290% above median its 10-year median of 1.08)
GF Value™: NT$19.34 vs. price of NT$22.20 (14.8% above fair value)
Industry Position: 76.2% above the Retail - Cyclical median (#627 of 1125)
No single metric tells the full story. See the TPE:2908 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Test Rite International Co Ltd is a Taiwan-based company that is principally engaged in the trading business and retail business. It mainly imports and exports hand tools, auto parts, machinery, furniture, and various home appliances. Test-Rite's marketplaces are located in the United States of America, Canada, Great Britain, France, Germany, Australia, etc.
66GF Score
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