China Merchants Bank CoCIHKY +0.67%69 Pretax Margin % is 51.39% as of Mar. 2026, which is 15% above its 10-year median of 44.50. GuruFocus rates CIHKY with a GF Score™ of 69/100 and a GF Value™ of $30.90 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,530 Banks companies, China Merchants Bank Co ranks better than 86.86% on this metric.
The historical rank and industry rank for China Merchants Bank Co's Pretax Margin % or its related term are showing as below:
CIHKY'
s Pretax Margin % Range Over the Past 10 Years
Min: 37.71 Med: 44.5 Max: 53.9
Current: 53.79
CIHKY's Pretax Margin % is ranked better than 86.86% of 1530
companies
in the Banks industry
Industry Median: 34.715
vs CIHKY: 53.79
China Merchants Bank Co (OTCPK:CIHKY) 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.
China Merchants Bank Co Pretax Margin % Related Terms
China Merchants Bank Co Pretax Margin % Historical Data
* 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.
China Merchants Bank Co Pretax Margin % Competitor Comparison
For the Banks - Regional subindustry, China Merchants Bank 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.
China Merchants Bank Co Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, China Merchants Bank Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where China Merchants Bank 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.
China Merchants Bank Co (CIHKY) has a Pretax Margin % of 51.39% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on China Merchants Bank Co and its competitors. This is 15% above median its historical median of 44.50. Over the past decade, China Merchants Bank Co's Pretax Margin % has ranged from 37.71 to 53.90. According to the industry distribution chart, China Merchants Bank Co ranks #201 out of 1530 companies in the Banks industry, placing it in the top 13.1%.
Is China Merchants Bank Co's Pretax Margin % too high?
China Merchants Bank Co's current Pretax Margin % of 51.39% is 15% above median its 10-year median of 44.50. Over the past 10 years, this metric has ranged from a low of 37.71 to a high of 53.90. The Banks industry median Pretax Margin % is 34.72. China Merchants Bank Co's value of 51.39% is 48% above this industry median. Based on the distribution chart, China Merchants Bank Co ranks #201 out of 1530 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, China Merchants Bank Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Bank Co's Pretax Margin % compare to competitors?
According to the Banks industry distribution chart, China Merchants Bank Co ranks #201 out of 1530 companies for Pretax Margin %. This places China Merchants Bank Co in the top 13% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 34.72. China Merchants Bank Co's value of 51.39% is 48% above this benchmark. Historically, China Merchants Bank Co's own Pretax Margin % has ranged from 37.71 to 53.90 over the past decade. While the company's 10-year median is 44.50 vs. the industry median of 34.72, China Merchants Bank Co 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 Banks company?
The median Pretax Margin % among Banks companies is 34.72, based on 1,530 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. China Merchants Bank Co's current Pretax Margin % of 51.39% is 48% 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 China Merchants Bank Co and its competitors. For the Banks industry, the median Pretax Margin % is 34.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Bank Co's current Pretax Margin % is 51.39%, which is 15% above median its own 10-year median of 44.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Bank Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Bank Co (CIHKY) is currently considered Fairly Valued. The stock's GF Value™ is $30.90, compared to a current price of $28.69 — trading 7.2% below its estimated fair value. The current Pretax Margin % is 51.39%, which is 15% above median its 10-year median of 44.50 and 48% above the Banks industry median of 34.72. China Merchants Bank Co's overall GF Score™ is 69/100 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 China Merchants Bank Co (CIHKY), the current Pretax Margin % is 51.39% as of Mar. 2026. 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 China Merchants Bank Co (CIHKY) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Bank Co stock appears to be undervalued.
The current stock price of $28.69 is trading 7.2% below its estimated GF Value™ of $30.90.
GuruFocus considers China Merchants Bank Co to be Fairly Valued.
Key valuation signals for CIHKY:
Pretax Margin %: 51.39% (15% above median its 10-year median of 44.50)
GF Value™: $30.90 vs. price of $28.69 (7.2% below fair value)
Industry Position: 48% above the Banks median (#201 of 1530)
No single metric tells the full story. See the CIHKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Bank was founded in 1987 and is headquartered in Shenzhen. The bank is China's seventh-largest listed bank by assets, with the largest distribution network among China's joint-stock banks. CMB's network has been expanding rapidly. Its outlets are located mainly in China's more developed areas, including the Pearl River and Yangtze River deltas. The firm has 18% and 82% of its shares listed on the Hong Kong and Shanghai exchanges, respectively. It has no foreign strategic investors. China Merchants Group is its largest shareholder, with a 30% stake. Retail banking, corporate banking, and wholesale banking accounted for 49%, 51%, and 0% of total profit before tax, respectively, and 40%, 58%, and 2% of total revenue in 2024.
69GF Score
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