Elite PharmaceuticalsELTP +4.08%42 Pretax Margin % is 65.95% as of Dec. 2025, which is 17255% above its 10-year median of 0.38. GuruFocus rates ELTP with a GF Score™ of 42/100 and a GF Value™ of $0.57 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 955 Drug Manufacturers companies, Elite Pharmaceuticals ranks better than 95.92% on this metric.
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.
Elite Pharmaceuticals Pretax Margin % Related Terms
Elite Pharmaceuticals Pretax Margin % Historical Data
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The historical data trend for Elite Pharmaceuticals'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.
ELTP vs SIGA, ORGO, EOLS: Pretax Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Elite Pharmaceuticals'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.
Elite Pharmaceuticals Pretax Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Elite Pharmaceuticals's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Elite Pharmaceuticals'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.
Elite Pharmaceuticals (ELTP) has a Pretax Margin % of 65.95% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Elite Pharmaceuticals and its competitors. This is 17255% above median its historical median of 0.38. According to the industry distribution chart, Elite Pharmaceuticals ranks #39 out of 955 companies in the Drug Manufacturers industry, placing it in the top 4.1%.
Is Elite Pharmaceuticals' Pretax Margin % too high?
Elite Pharmaceuticals' current Pretax Margin % of 65.95% is 17255% above median its 10-year median of 0.38. The Drug Manufacturers industry median Pretax Margin % is 7.28. Elite Pharmaceuticals' value of 65.95% is 805.9% above this industry median. Based on the distribution chart, Elite Pharmaceuticals ranks #39 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Elite Pharmaceuticals has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elite Pharmaceuticals' Pretax Margin % compare to SIGA and ORGO?
According to the Drug Manufacturers industry distribution chart, Elite Pharmaceuticals ranks #39 out of 955 companies for Pretax Margin %. This places Elite Pharmaceuticals in the top 4% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 7.28. Elite Pharmaceuticals' value of 65.95% is 805.9% above this benchmark. While the company's 10-year median is 0.38 vs. the industry median of 7.28, Elite Pharmaceuticals 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 Drug Manufacturers company?
The median Pretax Margin % among Drug Manufacturers companies is 7.28, based on 955 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. Elite Pharmaceuticals's current Pretax Margin % of 65.95% is 805.9% 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 Elite Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Pretax Margin % is 7.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elite Pharmaceuticals's current Pretax Margin % is 65.95%, which is 17255% above median its own 10-year median of 0.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elite Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Elite Pharmaceuticals (ELTP) is currently considered Possible Value Trap. The stock's GF Value™ is $0.57, compared to a current price of $0.39 — trading 32.5% below its estimated fair value. The current Pretax Margin % is 65.95%, which is 17255% above median its 10-year median of 0.38 and 805.9% above the Drug Manufacturers industry median of 7.28. Elite Pharmaceuticals' overall GF Score™ is 42/100 with 1 warning sign 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 Elite Pharmaceuticals (ELTP), the current Pretax Margin % is 65.95% 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 Elite Pharmaceuticals (ELTP) Overvalued in 2026?
Based on GuruFocus' analysis, Elite Pharmaceuticals stock appears to be undervalued.
The current stock price of $0.39 is trading 32.5% below its estimated GF Value™ of $0.57.
GuruFocus considers Elite Pharmaceuticals to be Possible Value Trap.
Key valuation signals for ELTP:
Pretax Margin %: 65.95% (17255% above median its 10-year median of 0.38)
GF Value™: $0.57 vs. price of $0.39 (32.5% below fair value)
Industry Position: 805.9% above the Drug Manufacturers median (#39 of 955)
No single metric tells the full story. See the ELTP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elite Pharmaceuticals Inc is a pharmaceutical company. It is principally engaged in the development and manufacture of oral, controlled-release products, using proprietary know-how and technology. The company's operating segment includes Abbreviated New Drug Applications (ANDA) and New Drug Applications (NDA). It generates maximum revenue from the ANDA segment. The company focuses on developing pain management products; manufacturing a line of generic pharmaceutical products with approved Abbreviated New Drug Applications; developing additional generic pharmaceutical products; development of other products in its pipeline including the products with its partners; and commercialization of new products.
42GF Score
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