Zyxel GroupTPE:3704 75 Net Margin % is 3.14% as of Dec. 2025, which is 34% above its 10-year median of 2.35. GuruFocus rates TPE:3704 with a GF Score™ of 75/100 and a GF Value™ of NT$36.89 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,480 Hardware companies, Zyxel Group ranks worse than 51.25% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Zyxel Group's Net Income for the
three
months ended in Dec. 2025 was NT$178 Mil. Zyxel Group's Revenue for the
three
months ended in Dec. 2025 was NT$5,656 Mil. Therefore, Zyxel Group's net margin for the quarter that ended in Dec. 2025 was 3.14%.
The historical rank and industry rank for Zyxel Group's Net Margin % or its related term are showing as below:
TPE:3704'
s Net Margin % Range Over the Past 10 Years
Min: -2.98 Med: 2.35 Max: 5.3
Current: 2.51
TPE:3704's Net Margin % is ranked worse than 51.25% of 2480
companies
in the Hardware industry
Industry Median: 2.71
vs TPE:3704: 2.51
Zyxel Group (TPE:3704) 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.
Zyxel Group Net Margin % Related Terms
Zyxel Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Zyxel Group'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.
TPE:3704 vs CSCO, CIEN, MSI: Net Margin % Comparison
For the Communication Equipment subindustry, Zyxel Group'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.
Zyxel Group Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Zyxel Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Zyxel Group'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.
Zyxel Group (TPE:3704) has a Net Margin % of 3.14% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Zyxel Group and its competitors. This is 34% above median its historical median of 2.35. According to the industry distribution chart, Zyxel Group ranks #1271 out of 2480 companies in the Hardware industry, placing it in the top 51.2%.
Is Zyxel Group's Net Margin % too high?
Zyxel Group's current Net Margin % of 3.14% is 34% above median its 10-year median of 2.35. The Hardware industry median Net Margin % is 2.71. Zyxel Group's value of 3.14% is 15.9% above this industry median. Based on the distribution chart, Zyxel Group ranks #1271 out of 2480 companies in the Hardware industry, which is below the industry midpoint. Overall, Zyxel Group has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zyxel Group's Net Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Zyxel Group ranks #1271 out of 2480 companies for Net Margin %. This places Zyxel Group in the lower half of its industry. The industry median Net Margin % is 2.71. Zyxel Group's value of 3.14% is 15.9% above this benchmark. While the company's 10-year median is 2.35 vs. the industry median of 2.71, Zyxel Group 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 2.71, based on 2,480 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. Zyxel Group's current Net Margin % of 3.14% is 15.9% 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 Zyxel Group and its competitors. For the Hardware industry, the median Net Margin % is 2.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zyxel Group's current Net Margin % is 3.14%, which is 34% above median its own 10-year median of 2.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zyxel Group stock overvalued right now?
Based on GuruFocus' analysis, Zyxel Group (TPE:3704) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$36.89, compared to a current price of NT$45.35 — trading 22.9% above its estimated fair value. The current Net Margin % is 3.14%, which is 34% above median its 10-year median of 2.35 and 15.9% above the Hardware industry median of 2.71. Zyxel Group's overall GF Score™ is 75/100 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 Zyxel Group (TPE:3704), the current Net Margin % is 3.14% 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 Zyxel Group (TPE:3704) Overvalued in 2026?
Based on GuruFocus' analysis, Zyxel Group stock appears to be overvalued.
The current stock price of NT$45.35 is trading 22.9% above its estimated GF Value™ of NT$36.89.
GuruFocus considers Zyxel Group to be Modestly Overvalued.
Key valuation signals for TPE:3704:
Net Margin %: 3.14% (34% above median its 10-year median of 2.35)
GF Value™: NT$36.89 vs. price of NT$45.35 (22.9% above fair value)
Industry Position: 15.9% above the Hardware median (#1271 of 2480)
No single metric tells the full story. See the TPE:3704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zyxel Group Corp is a Taiwan-based company that offers communications and networking products. It produces wifi systems, wireless extenders, home routers, cloud access cameras, switches, power and adapters, personal cloud storage, and security appliances and services. Geographically, it covers the United States, France, and other countries. It has four reportable segments: brand business segment, channel business segment, product business segment, and investment segment.
75GF Score
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