SDM (Smart Digital Group) Operating Income: $-37.95 Mil (TTM As of Sep. 2025)


SDM Smart Digital Group Ltd SDM
26 GF Score
Price $1.85
! 4 Warning Signs
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What is Smart Digital Group Operating Income?

Smart Digital Group SDM -86.41% 26 Operating Income is $-37.95 Mil as of Sep. 2025. GuruFocus rates SDM with a GF Score™ of 26/100. The stock has 4 warning signs investors should review.

Smart Digital Group's Operating Income for the six months ended in Sep. 2025 was $-38.52 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2025 was $-37.95 Mil.

Warning Sign:

Smart Digital Group Ltd has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Smart Digital Group's Operating Income for the six months ended in Sep. 2025 was $-38.52 Mil. Smart Digital Group's Revenue for the six months ended in Sep. 2025 was $22.72 Mil. Therefore, Smart Digital Group's Operating Margin % for the quarter that ended in Sep. 2025 was -169.54%.

Smart Digital Group's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Smart Digital Group's annualized ROC % for the quarter that ended in Sep. 2025 was -942.61%. Smart Digital Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2025 was -989.14%.

Smart Digital Group  (NAS:SDM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Smart Digital Group's annualized ROC % for the quarter that ended in Sep. 2025 is calculated as:

ROC % (Q: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2025 ) + Invested Capital (Q: Sep. 2025 ))/ count )
=-77.03 * ( 1 - 0.6% )/( (7.39 + 8.856)/ 2 )
=-76.56782/8.123
=-942.61 %

where

Invested Capital(Q: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=11.067 - 3.667 - ( 0.01 - max(0, 4.178 - 10.522+0.01))
=7.39

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=14.562 - 5.455 - ( 0.251 - max(0, 5.529 - 11.819+0.251))
=8.856

Note: The Operating Income data used here is two times the semi-annual (Sep. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Smart Digital Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2025  Q: Sep. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-77.034/( ( (0.176 + max(6.307, 0)) + (0.186 + max(8.907, 0)) )/ 2 )
=-77.034/( ( 6.483 + 9.093 )/ 2 )
=-77.034/7.788
=-989.14 %

where Working Capital is:

Working Capital(Q: Mar. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7.51 + 0 + 2.91) - (3.667 + 0.446 + 0)
=6.307

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10.604 + 0 + 3.763) - (5.455 + 0.005 + 0)
=8.907

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Smart Digital Group's Operating Margin % for the quarter that ended in Sep. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2025 )/Revenue (Q: Sep. 2025 )
=-38.515/22.718
=-169.54 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Smart Digital Group Operating Income Related Terms

Smart Digital Group Operating Income Historical Data

* Premium members only.

The historical data trend for Smart Digital Group's Operating Income 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.

Smart Digital Group Operating Income Chart

Smart Digital Group Annual Data
Trend Sep22 Sep23 Sep24 Sep25
Operating Income
0.17 2.29 2.07 -37.95

Smart Digital Group Semi-Annual Data
Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
Operating Income Get a 7-Day Free Trial 1.93 0.24 1.84 0.57 -38.52
SDM
26GF Score
Smart Digital Group Ltd SDM
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Smart Digital Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $-37.95 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $-37.95 Mil mean?
Smart Digital Group (SDM) has a Operating Income of $-37.95 Mil as of Sep. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Smart Digital Group and its competitors.
Is Smart Digital Group's Operating Income too high?
Smart Digital Group's current Operating Income is $-37.95 Mil. Overall, Smart Digital Group has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Smart Digital Group's Operating Income compare to WIMI and HFUS?
Smart Digital Group's Operating Income of $-37.95 Mil can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Media - Diversified company?
A good Operating Income depends on the Media - Diversified industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Smart Digital Group and its competitors. Smart Digital Group's current Operating Income is $-37.95 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart Digital Group stock overvalued right now?
Smart Digital Group (SDM) has a current Operating Income of $-37.95 Mil. The current Operating Income is $-37.95 Mil. Smart Digital Group's overall GF Score™ is 26/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Smart Digital Group (SDM), the current Operating Income is $-37.95 Mil as of Sep. 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.

Smart Digital Group Business Description

Address No. 2615, Xingsheng 1st Road, Hengqin New District, Guangdong Province, Zhuhai, CHN
Smart Digital Group Ltd is a holding company and operates through subsidiaries. It is engaged in event planning and execution services. The company's services include event planning and execution services, internet media services, software customization and marketing services, and business planning and consulting services. The company generates key revenue from internet media services, which include developing marketing strategies, designing marketing content, distributing such marketing content on select internet platforms, and other related services. It operates in Mainland China, Macau, and Singapore, with maximum revenue coming from Mainland China.
26GF Score

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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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