Stepchange HoldingsASX:STH -1.92%24 Pretax Margin % is 2.23% as of Dec. 2025, which is 78% below its 10-year median of 10.07. GuruFocus rates ASX:STH with a GF Score™ of 24/100. The stock has 1 warning sign investors should review. Among 2,822 Software companies, Stepchange Holdings ranks worse than 53.15% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Stepchange Holdings Pretax Margin % Related Terms
Stepchange Holdings Pretax Margin % Historical Data
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The historical data trend for Stepchange Holdings's Pretax 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.
ASX:STH vs CRM, SHOP, UBER: Pretax Margin % Comparison
For the Software - Application subindustry, Stepchange Holdings's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Stepchange Holdings Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Stepchange Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Stepchange Holdings's Pretax 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.
Stepchange Holdings (ASX:STH) has a Pretax Margin % of 2.23% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Stepchange Holdings and its competitors. This is 78% below median its historical median of 10.07. Over the past decade, Stepchange Holdings' Pretax Margin % has ranged from 2.23 to 10.38. According to the industry distribution chart, Stepchange Holdings ranks #1500 out of 2822 companies in the Software industry, placing it in the top 53.2%.
Is Stepchange Holdings' Pretax Margin % too high?
Stepchange Holdings' current Pretax Margin % of 2.23% is 78% below median its 10-year median of 10.07. Over the past 10 years, this metric has ranged from a low of 2.23 to a high of 10.38. The Software industry median Pretax Margin % is 3.50. Stepchange Holdings' value of 2.23% is 36.3% below this industry median. Based on the distribution chart, Stepchange Holdings ranks #1500 out of 2822 companies in the Software industry, which is below the industry midpoint. Overall, Stepchange Holdings has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Stepchange Holdings' Pretax Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Stepchange Holdings ranks #1500 out of 2822 companies for Pretax Margin %. This places Stepchange Holdings in the lower half of its industry. The industry median Pretax Margin % is 3.50. Stepchange Holdings' value of 2.23% is 36.3% below this benchmark. Historically, Stepchange Holdings' own Pretax Margin % has ranged from 2.23 to 10.38 over the past decade. While the company's 10-year median is 10.07 vs. the industry median of 3.50, Stepchange Holdings 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.50, based on 2,822 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stepchange Holdings's current Pretax Margin % of 2.23% is 36.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Stepchange Holdings and its competitors. For the Software industry, the median Pretax Margin % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepchange Holdings's current Pretax Margin % is 2.23%, which is 78% below median its own 10-year median of 10.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stepchange Holdings stock overvalued right now?
Stepchange Holdings (ASX:STH) has a current Pretax Margin % of 2.23%. The current Pretax Margin % is 2.23%, which is 78% below median its 10-year median of 10.07 and 36.3% below the Software industry median of 3.50. Stepchange Holdings' overall GF Score™ is 24/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Stepchange Holdings (ASX:STH), the current Pretax Margin % is 2.23% 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.
Stepchange Holdings Ltd is engaged in providing software services. It delivers end-to-end SAP ERP and digital transformation service. Its services include: Strategic Alignment and Execution; Program and Project Management; Change Management; and Business Analysis.
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