RMCHIX:RML -0.96%45 Pretax Margin % is 8.44% as of Nov. 2025, which is 40% above its 10-year median of 6.04. GuruFocus rates CHIX:RML with a GF Score™ of 45/100 and a GF Value™ of £0.72 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,825 Software companies, RM ranks worse than 54.05% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. RM's Pre-Tax Income for the
six
months ended in Nov. 2025 was £7.5 Mil. RM's Revenue for the
six
months ended in Nov. 2025 was £88.9 Mil. Therefore, RM's pretax margin for the quarter that ended in Nov. 2025 was 8.44%.
The historical rank and industry rank for RM's Pretax Margin % or its related term are showing as below:
CHIX:RMl'
s Pretax Margin % Range Over the Past 10 Years
Min: -9.71 Med: 6.04 Max: 10.35
Current: 1.98
CHIX:RMl's Pretax Margin % is ranked worse than 54.05% of 2825
companies
in the Software industry
Industry Median: 3.53
vs CHIX:RMl: 1.98
RM (CHIX:RMl) 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.
RM Pretax Margin % Related Terms
RM Pretax Margin % Historical Data
* Premium members only.
The historical data trend for RM'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.
CHIX:RML vs CRM, SHOP, UBER: Pretax Margin % Comparison
For the Software - Application subindustry, RM'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.
RM Pretax Margin % vs Software Industry
For the Software industry and Technology sector, RM's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where RM'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.
RM (CHIX:RML) has a Pretax Margin % of 8.44% as of Nov. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on RM and its competitors. This is 40% above median its historical median of 6.04. According to the industry distribution chart, RM ranks #1527 out of 2825 companies in the Software industry, placing it in the top 54.1%.
Is RM's Pretax Margin % too high?
RM's current Pretax Margin % of 8.44% is 40% above median its 10-year median of 6.04. The Software industry median Pretax Margin % is 3.53. RM's value of 8.44% is 139.1% above this industry median. Based on the distribution chart, RM ranks #1527 out of 2825 companies in the Software industry, which is below the industry midpoint. Overall, RM has a GF Score™ of 45/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RM's Pretax Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, RM ranks #1527 out of 2825 companies for Pretax Margin %. This places RM in the lower half of its industry. The industry median Pretax Margin % is 3.53. RM's value of 8.44% is 139.1% above this benchmark. While the company's 10-year median is 6.04 vs. the industry median of 3.53, RM 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 Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,825 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. RM's current Pretax Margin % of 8.44% is 139.1% 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 RM and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RM's current Pretax Margin % is 8.44%, which is 40% above median its own 10-year median of 6.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RM stock overvalued right now?
Based on GuruFocus' analysis, RM (CHIX:RML) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.72, compared to a current price of £0.93 — trading 29.3% above its estimated fair value. The current Pretax Margin % is 8.44%, which is 40% above median its 10-year median of 6.04 and 139.1% above the Software industry median of 3.53. RM's overall GF Score™ is 45/100 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 RM (CHIX:RML), the current Pretax Margin % is 8.44% as of Nov. 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 RM (CHIX:RML) Overvalued in 2026?
Based on GuruFocus' analysis, RM stock appears to be overvalued.
The current stock price of £0.93 is trading 29.3% above its estimated GF Value™ of £0.72.
GuruFocus considers RM to be Modestly Overvalued.
Key valuation signals for CHIX:RML:
Pretax Margin %: 8.44% (40% above median its 10-year median of 6.04)
GF Value™: £0.72 vs. price of £0.93 (29.3% above fair value)
Industry Position: 139.1% above the Software median (#1527 of 2825)
No single metric tells the full story. See the CHIX:RML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RM PLC supplies products, services, and solutions to the UK and international education markets. Its activities include the supply of products and software licences, rendering of services, and delivery of its own platform solutions, along with digital assessment and exam marking solutions, IT managed services and connectivity packages, and curriculum-aligned learning resources. The Group is structured into three operating divisions: RM TTS, RM Assessment, and RM Technology. It operates in the UK, Europe, North America, Asia, the Middle East, and the rest of the world, with the majority of revenue coming from the UK and the RM TTS segment.
45GF Score
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