WatercoASX:WAT 84 Pretax Margin % is 7.06% as of Dec. 2025, which is 8% above its 10-year median of 6.55. GuruFocus rates ASX:WAT with a GF Score™ of 84/100 and a GF Value™ of A$7.63 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 3,038 Industrial Products companies, Waterco ranks worse than 51.51% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Waterco's Pre-Tax Income for the
six
months ended in Dec. 2025 was A$9.2 Mil. Waterco's Revenue for the
six
months ended in Dec. 2025 was A$130.3 Mil. Therefore, Waterco's pretax margin for the quarter that ended in Dec. 2025 was 7.06%.
The historical rank and industry rank for Waterco's Pretax Margin % or its related term are showing as below:
ASX:WAT'
s Pretax Margin % Range Over the Past 10 Years
Min: 3.7 Med: 6.55 Max: 12.06
Current: 5.52
ASX:WAT's Pretax Margin % is ranked worse than 51.51% of 3038
companies
in the Industrial Products industry
Industry Median: 5.85
vs ASX:WAT: 5.52
Waterco (ASX:WAT) Pretax Margin % Explanation
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.
Waterco Pretax Margin % Related Terms
Waterco Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Waterco'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:WAT vs VLTO, ZWS, CECO: Pretax Margin % Comparison
For the Pollution & Treatment Controls subindustry, Waterco'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.
Waterco Pretax Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Waterco's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Waterco'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.
Waterco (ASX:WAT) has a Pretax Margin % of 7.06% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Waterco and its competitors. This is near median its historical median of 6.55. Over the past decade, Waterco's Pretax Margin % has ranged from 3.70 to 12.06. According to the industry distribution chart, Waterco ranks #1565 out of 3038 companies in the Industrial Products industry, placing it in the top 51.5%.
Is Waterco's Pretax Margin % too high?
Waterco's current Pretax Margin % of 7.06% is near median its 10-year median of 6.55. Over the past 10 years, this metric has ranged from a low of 3.70 to a high of 12.06. The Industrial Products industry median Pretax Margin % is 5.85. Waterco's value of 7.06% is 20.7% above this industry median. Based on the distribution chart, Waterco ranks #1565 out of 3038 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Waterco has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Waterco's Pretax Margin % compare to VLTO and ZWS?
According to the Industrial Products industry distribution chart, Waterco ranks #1565 out of 3038 companies for Pretax Margin %. This places Waterco in the lower half of its industry. The industry median Pretax Margin % is 5.85. Waterco's value of 7.06% is 20.7% above this benchmark. Historically, Waterco's own Pretax Margin % has ranged from 3.70 to 12.06 over the past decade. While the company's 10-year median is 6.55 vs. the industry median of 5.85, Waterco 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 Pretax Margin % for an Industrial Products company?
The median Pretax Margin % among Industrial Products companies is 5.85, based on 3,038 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. Waterco's current Pretax Margin % of 7.06% is 20.7% 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 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 Waterco and its competitors. For the Industrial Products industry, the median Pretax Margin % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waterco's current Pretax Margin % is 7.06%, which is near median its own 10-year median of 6.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waterco stock overvalued right now?
Based on GuruFocus' analysis, Waterco (ASX:WAT) is currently considered Significantly Undervalued. The stock's GF Value™ is A$7.63, compared to a current price of A$5.20 — trading 31.8% below its estimated fair value. The current Pretax Margin % is 7.06%, which is near median its 10-year median of 6.55 and 20.7% above the Industrial Products industry median of 5.85. Waterco's overall GF Score™ is 84/100 with 4 warning signs 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 Waterco (ASX:WAT), the current Pretax Margin % is 7.06% 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 Waterco (ASX:WAT) Overvalued in 2026?
Based on GuruFocus' analysis, Waterco stock appears to be undervalued.
The current stock price of A$5.20 is trading 31.8% below its estimated GF Value™ of A$7.63.
GuruFocus considers Waterco to be Significantly Undervalued.
Key valuation signals for ASX:WAT:
Pretax Margin %: 7.06% (near median its 10-year median of 6.55)
GF Value™: A$7.63 vs. price of A$5.20 (31.8% below fair value)
Industry Position: 20.7% above the Industrial Products median (#1565 of 3038)
No single metric tells the full story. See the ASX:WAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Waterco Ltd designs, manufactures, and distributes filtration and sanitisation products for swimming pools, spas, aquaculture, and water purification sectors. The company serves residential, commercial, and industrial markets in various countries. Waterco operates manufacturing and R&D facilities in Australia, New Zealand, Malaysia, China, and other countries. It also franchises Swimart, a pool and spa retail network in Australia and New Zealand, and is the exclusive distributor of Zane Solar Pool Heating systems. Waterco's product range includes pool equipment, water treatment systems, chemicals, and solar heating solutions. The company generates revenue predominantly through the sales of pool and spa equipment, water treatment systems, and franchising operations.
84GF Score
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