CochlearCHEOF +5.20%62 Pretax Margin % is 18.26% as of Dec. 2025, which is 21% below its 10-year median of 23.19. GuruFocus rates CHEOF with a GF Score™ of 62/100 and a GF Value™ of $209.50 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 818 Medical Devices & Instruments companies, Cochlear ranks better than 84.35% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Cochlear's Pre-Tax Income for the
six
months ended in Dec. 2025 was $142 Mil. Cochlear's Revenue for the
six
months ended in Dec. 2025 was $776 Mil. Therefore, Cochlear's pretax margin for the quarter that ended in Dec. 2025 was 18.26%.
The historical rank and industry rank for Cochlear's Pretax Margin % or its related term are showing as below:
CHEOF'
s Pretax Margin % Range Over the Past 10 Years
Min: -20.53 Med: 23.19 Max: 25.63
Current: 19.47
CHEOF's Pretax Margin % is ranked better than 84.35% of 818
companies
in the Medical Devices & Instruments industry
Industry Median: 2.505
vs CHEOF: 19.47
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.
Cochlear Pretax Margin % Related Terms
Cochlear Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Cochlear'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.
CHEOF vs ABT, SYK, MDT: Pretax Margin % Comparison
For the Medical Devices subindustry, Cochlear'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.
Cochlear Pretax Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Cochlear's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Cochlear'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.
Cochlear (CHEOF) has a Pretax Margin % of 18.26% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cochlear and its competitors. This is 21% below median its historical median of 23.19. According to the industry distribution chart, Cochlear ranks #128 out of 818 companies in the Medical Devices & Instruments industry, placing it in the top 15.6%.
Is Cochlear's Pretax Margin % too high?
Cochlear's current Pretax Margin % of 18.26% is 21% below median its 10-year median of 23.19. The Medical Devices & Instruments industry median Pretax Margin % is 2.51. Cochlear's value of 18.26% is 628.9% above this industry median. Based on the distribution chart, Cochlear ranks #128 out of 818 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Cochlear has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cochlear's Pretax Margin % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Cochlear ranks #128 out of 818 companies for Pretax Margin %. This places Cochlear in the top 16% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.51. Cochlear's value of 18.26% is 628.9% above this benchmark. While the company's 10-year median is 23.19 vs. the industry median of 2.51, Cochlear 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 a Medical Devices & Instruments company?
The median Pretax Margin % among Medical Devices & Instruments companies is 2.51, based on 818 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. Cochlear's current Pretax Margin % of 18.26% is 628.9% 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 Cochlear and its competitors. For the Medical Devices & Instruments industry, the median Pretax Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cochlear's current Pretax Margin % is 18.26%, which is 21% below median its own 10-year median of 23.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cochlear stock overvalued right now?
Based on GuruFocus' analysis, Cochlear (CHEOF) is currently considered Significantly Undervalued. The stock's GF Value™ is $209.50, compared to a current price of $79.48 — trading 62.1% below its estimated fair value. The current Pretax Margin % is 18.26%, which is 21% below median its 10-year median of 23.19 and 628.9% above the Medical Devices & Instruments industry median of 2.51. Cochlear's overall GF Score™ is 62/100 with 2 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 Cochlear (CHEOF), the current Pretax Margin % is 18.26% 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 Cochlear (CHEOF) Overvalued in 2026?
Based on GuruFocus' analysis, Cochlear stock appears to be undervalued.
The current stock price of $79.48 is trading 62.1% below its estimated GF Value™ of $209.50.
GuruFocus considers Cochlear to be Significantly Undervalued.
Key valuation signals for CHEOF:
Pretax Margin %: 18.26% (21% below median its 10-year median of 23.19)
GF Value™: $209.50 vs. price of $79.48 (62.1% below fair value)
Industry Position: 628.9% above the Medical Devices & Instruments median (#128 of 818)
No single metric tells the full story. See the CHEOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cochlear is the leading cochlear implant device manufacturer, with around 60% global market share. Developed markets contribute 80% of group revenue, where cochlear implants are the standard of care for children with severe-to-profound hearing loss. The company also actively targets the growing cohort of seniors in developed markets. Tender-oriented emerging markets contribute the remaining 20% of group revenue. Main products include cochlear implants, bone-anchored hearing aids, and associated sound processors. In fiscal 2025, 49% of revenue came from the Americas, 34% from Europe, the Middle East, and Africa, and 18% from the Asia-Pacific segment.
62GF Score
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