SercommTPE:5388 +2.46%85 Net Margin % is 1.71% as of Dec. 2025, which is 45% below its 10-year median of 3.11. GuruFocus rates TPE:5388 with a GF Score™ of 85/100 and a GF Value™ of NT$108.14 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,473 Hardware companies, Sercomm ranks worse than 53.21% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Sercomm's Net Income for the
three
months ended in Dec. 2025 was NT$268 Mil. Sercomm's Revenue for the
three
months ended in Dec. 2025 was NT$15,683 Mil. Therefore, Sercomm's net margin for the quarter that ended in Dec. 2025 was 1.71%.
The historical rank and industry rank for Sercomm's Net Margin % or its related term are showing as below:
TPE:5388'
s Net Margin % Range Over the Past 10 Years
Min: 1.96 Med: 3.11 Max: 4
Current: 2.23
TPE:5388's Net Margin % is ranked worse than 53.21% of 2473
companies
in the Hardware industry
Industry Median: 2.71
vs TPE:5388: 2.23
Sercomm (TPE:5388) 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.
Sercomm Net Margin % Related Terms
Sercomm Net Margin % Historical Data
* Premium members only.
The historical data trend for Sercomm'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:5388 vs CSCO, CIEN, MSI: Net Margin % Comparison
For the Communication Equipment subindustry, Sercomm'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.
Sercomm Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Sercomm's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sercomm'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.
Sercomm (TPE:5388) has a Net Margin % of 1.71% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Sercomm and its competitors. This is 45% below median its historical median of 3.11. Over the past decade, Sercomm's Net Margin % has ranged from 1.96 to 4.00. According to the industry distribution chart, Sercomm ranks #1316 out of 2473 companies in the Hardware industry, placing it in the top 53.2%.
Is Sercomm's Net Margin % too high?
Sercomm's current Net Margin % of 1.71% is 45% below median its 10-year median of 3.11. Over the past 10 years, this metric has ranged from a low of 1.96 to a high of 4.00. The Hardware industry median Net Margin % is 2.71. Sercomm's value of 1.71% is 36.9% below this industry median. Based on the distribution chart, Sercomm ranks #1316 out of 2473 companies in the Hardware industry, which is below the industry midpoint. Overall, Sercomm has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sercomm's Net Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Sercomm ranks #1316 out of 2473 companies for Net Margin %. This places Sercomm in the lower half of its industry. The industry median Net Margin % is 2.71. Sercomm's value of 1.71% is 36.9% below this benchmark. Historically, Sercomm's own Net Margin % has ranged from 1.96 to 4.00 over the past decade. While the company's 10-year median is 3.11 vs. the industry median of 2.71, Sercomm 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 2.71, based on 2,473 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. Sercomm's current Net Margin % of 1.71% is 36.9% 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 Sercomm 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. Sercomm's current Net Margin % is 1.71%, which is 45% below median its own 10-year median of 3.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sercomm stock overvalued right now?
Based on GuruFocus' analysis, Sercomm (TPE:5388) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$108.14, compared to a current price of NT$83.40 — trading 22.9% below its estimated fair value. The current Net Margin % is 1.71%, which is 45% below median its 10-year median of 3.11 and 36.9% below the Hardware industry median of 2.71. Sercomm's overall GF Score™ is 85/100 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 Sercomm (TPE:5388), the current Net Margin % is 1.71% 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 Sercomm (TPE:5388) Overvalued in 2026?
Based on GuruFocus' analysis, Sercomm stock appears to be undervalued.
The current stock price of NT$83.40 is trading 22.9% below its estimated GF Value™ of NT$108.14.
GuruFocus considers Sercomm to be Modestly Undervalued.
Key valuation signals for TPE:5388:
Net Margin %: 1.71% (45% below median its 10-year median of 3.11)
GF Value™: NT$108.14 vs. price of NT$83.40 (22.9% below fair value)
Industry Position: 36.9% below the Hardware median (#1316 of 2473)
No single metric tells the full story. See the TPE:5388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sercomm Corporation is mainly engaged in research and development, manufacturing, and sales of networking communication software and equipment. Its product portfolio includes FTTx Products, Cable DOCSIS Equipment, Integrated Access Devices (IAD), Small Cells, Smart Home, Mobile IoT, and SMB Products, among others. Geographically, the Group generates maximum revenue from the Americas, followed by Asia, Europe, and other markets.
85GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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