VTech HoldingsVTKLY -2.36%70 Net Margin % is 5.73% as of Mar. 2026, which is 27% below its 10-year median of 7.84. GuruFocus rates VTKLY with a GF Score™ of 70/100 and a GF Value™ of $6.35 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,473 Hardware companies, VTech Holdings ranks better than 68.54% on this metric.
Net margin is calculated as Net Income divided by its Revenue. VTech Holdings's Net Income for the
six
months ended in Mar. 2026 was $59 Mil. VTech Holdings's Revenue for the
six
months ended in Mar. 2026 was $1,036 Mil. Therefore, VTech Holdings's net margin for the quarter that ended in Mar. 2026 was 5.73%.
The historical rank and industry rank for VTech Holdings's Net Margin % or its related term are showing as below:
VTKLY'
s Net Margin % Range Over the Past 10 Years
Min: 6.61 Med: 7.84 Max: 9.73
Current: 6.61
VTKLY's Net Margin % is ranked better than 68.54% of 2473
companies
in the Hardware industry
Industry Median: 2.71
vs VTKLY: 6.61
VTech Holdings (OTCPK:VTKLY) 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.
VTech Holdings Net Margin % Related Terms
VTech Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for VTech Holdings'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 Communication Equipment subindustry, VTech Holdings'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.
VTech Holdings Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, VTech Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where VTech Holdings'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.
VTech Holdings (VTKLY) has a Net Margin % of 5.73% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on VTech Holdings and its competitors. This is 27% below median its historical median of 7.84. Over the past decade, VTech Holdings' Net Margin % has ranged from 6.61 to 9.73. According to the industry distribution chart, VTech Holdings ranks #778 out of 2473 companies in the Hardware industry, placing it in the top 31.5%.
Is VTech Holdings' Net Margin % too high?
VTech Holdings' current Net Margin % of 5.73% is 27% below median its 10-year median of 7.84. Over the past 10 years, this metric has ranged from a low of 6.61 to a high of 9.73. The Hardware industry median Net Margin % is 2.71. VTech Holdings' value of 5.73% is 111.4% above this industry median. Based on the distribution chart, VTech Holdings ranks #778 out of 2473 companies in the Hardware industry, which is above the industry midpoint. Overall, VTech Holdings has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does VTech Holdings' Net Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, VTech Holdings ranks #778 out of 2473 companies for Net Margin %. This puts VTech Holdings in the upper half of its industry. The industry median Net Margin % is 2.71. VTech Holdings' value of 5.73% is 111.4% above this benchmark. Historically, VTech Holdings' own Net Margin % has ranged from 6.61 to 9.73 over the past decade. While the company's 10-year median is 7.84 vs. the industry median of 2.71, VTech Holdings 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 2,473 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. VTech Holdings's current Net Margin % of 5.73% is 111.4% 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 VTech Holdings 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. VTech Holdings's current Net Margin % is 5.73%, which is 27% below median its own 10-year median of 7.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, VTech Holdings (VTKLY) is currently considered Fairly Valued. The stock's GF Value™ is $6.35, compared to a current price of $6.20 — trading 2.4% below its estimated fair value. The current Net Margin % is 5.73%, which is 27% below median its 10-year median of 7.84 and 111.4% above the Hardware industry median of 2.71. VTech Holdings' overall GF Score™ is 70/100 with 3 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 VTech Holdings (VTKLY), the current Net Margin % is 5.73% as of Mar. 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 VTech Holdings (VTKLY) Overvalued in 2026?
Based on GuruFocus' analysis, VTech Holdings stock appears to be undervalued.
The current stock price of $6.20 is trading 2.4% below its estimated GF Value™ of $6.35.
GuruFocus considers VTech Holdings to be Fairly Valued.
Key valuation signals for VTKLY:
Net Margin %: 5.73% (27% below median its 10-year median of 7.84)
GF Value™: $6.35 vs. price of $6.20 (2.4% below fair value)
Industry Position: 111.4% above the Hardware median (#778 of 2473)
No single metric tells the full story. See the VTKLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VTech Holdings Ltd is engaged in the designing, manufacturing, and distribution of consumer electronic products. It also provides contract manufacturing services. The company's diverse collection of products includes Telephone Products, Business Phones, Electronic Learning Toys, Baby Monitors, and Hospitality Products. In addition, it offers turnkey services to customers in several product categories. The company operates through four reportable segments: North America, (including the United States and Canada), Europe, Asia Pacific, and Others, which covers sales of electronic products to the rest of the world. It generates maximum revenue from Europe.
70GF Score
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