Zip CoASX:ZIP +3.51%62 Pretax Margin % is 10.07% as of Dec. 2025. GuruFocus rates ASX:ZIP with a GF Score™ of 62/100 and a GF Value™ of A$2.07 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 533 Credit Services companies, Zip Co ranks worse than 66.23% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Zip Co's Pre-Tax Income for the
six
months ended in Dec. 2025 was A$66 Mil. Zip Co's Revenue for the
six
months ended in Dec. 2025 was A$658 Mil. Therefore, Zip Co's pretax margin for the quarter that ended in Dec. 2025 was 10.07%.
The historical rank and industry rank for Zip Co's Pretax Margin % or its related term are showing as below:
ASX:ZIP'
s Pretax Margin % Range Over the Past 10 Years
Min: -182.34 Med: -55.57 Max: 9.82
Current: 9.82
ASX:ZIP's Pretax Margin % is ranked worse than 66.23% of 533
companies
in the Credit Services industry
Industry Median: 20.02
vs ASX:ZIP: 9.82
Zip Co (ASX:ZIP) 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.
Zip Co Pretax Margin % Related Terms
Zip Co Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Zip Co'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.
For the Credit Services subindustry, Zip Co'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.
Zip Co Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Zip Co'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.
Zip Co (ASX:ZIP) has a Pretax Margin % of 10.07% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #353 out of 533 companies in the Credit Services industry, placing it in the top 66.2%.
Is Zip Co's Pretax Margin % too high?
Zip Co's current Pretax Margin % is 10.07%. The Credit Services industry median Pretax Margin % is 20.02. Zip Co's value of 10.07% is 49.7% below this industry median. Based on the distribution chart, Zip Co ranks #353 out of 533 companies in the Credit Services industry, which is below the industry midpoint. Overall, Zip Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Pretax Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #353 out of 533 companies for Pretax Margin %. This places Zip Co in the lower half of its industry. The industry median Pretax Margin % is 20.02. Zip Co's value of 10.07% is 49.7% below this benchmark. 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 Credit Services company?
The median Pretax Margin % among Credit Services companies is 20.02, based on 533 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. Zip Co's current Pretax Margin % of 10.07% is 49.7% 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 Zip Co and its competitors. For the Credit Services industry, the median Pretax Margin % is 20.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current Pretax Margin % is 10.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zip Co stock overvalued right now?
Based on GuruFocus' analysis, Zip Co (ASX:ZIP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.07, compared to a current price of A$3.24 — trading 56.5% above its estimated fair value. The current Pretax Margin % is 10.07% and 49.7% below the Credit Services industry median of 20.02. Zip Co's overall GF Score™ is 62/100 with 7 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 Zip Co (ASX:ZIP), the current Pretax Margin % is 10.07% 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 Zip Co (ASX:ZIP) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be overvalued.
The current stock price of A$3.24 is trading 56.5% above its estimated GF Value™ of A$2.07.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
Pretax Margin %: 10.07%
GF Value™: A$2.07 vs. price of A$3.24 (56.5% above fair value)
Industry Position: 49.7% below the Credit Services median (#353 of 533)
No single metric tells the full story. See the ASX:ZIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.
62GF Score
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