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Ucloudlink GroupUCL -1.23%48 Net Margin % is -16.37% as of Jun. 2026. GuruFocus rates UCL with a GF Score™ of 48/100 and a GF Value™ of $1.40 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 368 Telecommunication Services companies, Ucloudlink Group ranks worse than 72.28% on this metric.
Ucloudlink Group (NAS:UCL) 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.
Ucloudlink Group Net Margin % Related Terms
Ucloudlink Group Net Margin % Historical Data
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The historical data trend for Ucloudlink 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.
For the Telecom Services subindustry, Ucloudlink 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.
Ucloudlink Group Net Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Ucloudlink Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Ucloudlink 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.
Ucloudlink Group (UCL) has a Net Margin % of -16.37% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Ucloudlink Group and its competitors. According to the industry distribution chart, Ucloudlink Group ranks #266 out of 368 companies in the Telecommunication Services industry, placing it in the top 72.3%.
Is Ucloudlink Group's Net Margin % too high?
Ucloudlink Group's current Net Margin % is -16.37%. Based on the distribution chart, Ucloudlink Group ranks #266 out of 368 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Ucloudlink Group has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ucloudlink Group's Net Margin % compare to ATGN and IOTR?
According to the Telecommunication Services industry distribution chart, Ucloudlink Group ranks #266 out of 368 companies for Net Margin %. This places Ucloudlink Group in the lower half of its industry. The industry median Net Margin % is 5.96. 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 Telecommunication Services company?
The median Net Margin % among Telecommunication Services companies is 5.96, based on 368 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. 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 Ucloudlink Group and its competitors. For the Telecommunication Services industry, the median Net Margin % is 5.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ucloudlink Group's current Net Margin % is -16.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ucloudlink Group stock overvalued right now?
Based on GuruFocus' analysis, Ucloudlink Group (UCL) is currently considered Possible Value Trap. The stock's GF Value™ is $1.40, compared to a current price of $0.40 — trading 71.2% below its estimated fair value. The current Net Margin % is -16.37%. Ucloudlink Group's overall GF Score™ is 48/100 with 4 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 Ucloudlink Group (UCL), the current Net Margin % is -16.37% 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 Ucloudlink Group (UCL) Overvalued in 2026?
Based on GuruFocus' analysis, Ucloudlink Group stock appears to be undervalued.
The current stock price of $0.40 is trading 71.2% below its estimated GF Value™ of $1.40.
GuruFocus considers Ucloudlink Group to be Possible Value Trap.
Key valuation signals for UCL:
Net Margin %: -16.37%
GF Value™: $1.40 vs. price of $0.40 (71.2% below fair value)
No single metric tells the full story. See the UCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ucloudlink Group Inc is engaged in the provision of data connectivity services and sales of Wi-Fi terminals and data-related products globally. Its uCloudlink cloud SIM platform is designed for shared mobile data connectivity services by allocating the SIM cards remotely and dynamically to users. Ucloudlink's core business is to provide mobile data connectivity services at competitive prices, which it delivers through a range of hardware products and service solutions to its business partners, retail, and enterprise customers. The main hardware terminals offered by the company include portable Wi-Fi terminals, smartphones, and smart-hardware products for international and local mobile data connectivity services. Geographically, it generates maximum revenue from Japan.
48GF Score
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