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China Strategic Technology Group (OTCPK:USPCY) 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.
China Strategic Technology Group Net Margin % Related Terms
China Strategic Technology Group 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.
China Strategic Technology Group Net Margin % Chart
For the Electronic Components subindustry, China Strategic Technology 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.
China Strategic Technology Group Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, China Strategic Technology Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where China Strategic Technology 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.
China Strategic Technology Group (USPCY) has a Net Margin % of -62.31% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on China Strategic Technology Group and its competitors. According to the industry distribution chart, China Strategic Technology Group ranks #2290 out of 2476 companies in the Hardware industry, placing it in the top 92.5%.
Is China Strategic Technology Group's Net Margin % too high?
China Strategic Technology Group's current Net Margin % is -62.31%. Based on the distribution chart, China Strategic Technology Group ranks #2290 out of 2476 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, China Strategic Technology Group has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Strategic Technology Group's Net Margin % compare to SPCX and GE?
According to the Hardware industry distribution chart, China Strategic Technology Group ranks #2290 out of 2476 companies for Net Margin %. This places China Strategic Technology Group in the lower half of its industry. The industry median Net Margin % is 2.68. 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 2.68, based on 2,476 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 China Strategic Technology Group and its competitors. For the Hardware industry, the median Net Margin % is 2.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Strategic Technology Group's current Net Margin % is -62.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Strategic Technology Group stock overvalued right now?
Based on GuruFocus' analysis, China Strategic Technology Group (USPCY) is currently considered Possible Value Trap. The stock's GF Value™ is $1.73, compared to a current price of $0.58 — trading 66.6% below its estimated fair value. The current Net Margin % is -62.31%. China Strategic Technology Group's overall GF Score™ is 47/100 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 China Strategic Technology Group (USPCY), the current Net Margin % is -62.31% 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 China Strategic Technology Group (USPCY) Overvalued in 2026?
Based on GuruFocus' analysis, China Strategic Technology Group stock appears to be undervalued.
The current stock price of $0.58 is trading 66.6% below its estimated GF Value™ of $1.73.
GuruFocus considers China Strategic Technology Group to be Possible Value Trap.
Key valuation signals for USPCY:
Net Margin %: -62.31%
GF Value™: $1.73 vs. price of $0.58 (66.6% below fair value)
No single metric tells the full story. See the USPCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Strategic Technology Group Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in two reportable business segments: Aerospace Business and the EMS Business. The Aerospace business comprises satellite manufacturing, satellite component manufacturing, precision electronics manufacturing, satellite data applications, satellite telemetry, tracking, and controlling (TT&C), and satellite launch; and the EMS Business includes assembling and PCBAs and fully-assembled electronic products. The Group generates maximum revenue from its EMS Business. Geographically, it derives maximum revenue from Hong Kong, followed by Mainland China, South Korea, India, Australia, Germany, Vietnam, the USA, and other regions.
47GF Score
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