McGraw HillFRA:1LI +1.27%31 Pretax Margin % is -11.37% as of Mar. 2026. GuruFocus rates FRA:1LI with a GF Score™ of 31/100. The stock has 5 warning signs investors should review. Among 256 Education companies, McGraw Hill ranks worse than 69.14% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. McGraw Hill's Pre-Tax Income for the
three
months ended in Mar. 2026 was €-46 Mil. McGraw Hill's Revenue for the
three
months ended in Mar. 2026 was €401 Mil. Therefore, McGraw Hill's pretax margin for the quarter that ended in Mar. 2026 was -11.37%.
The historical rank and industry rank for McGraw Hill's Pretax Margin % or its related term are showing as below:
FRA:1LI'
s Pretax Margin % Range Over the Past 10 Years
Min: -40.38 Med: -7.81 Max: 3.82
Current: 2.08
FRA:1LI's Pretax Margin % is ranked worse than 69.14% of 256
companies
in the Education industry
Industry Median: 8.245
vs FRA:1LI: 2.08
McGraw Hill (FRA:1LI) 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.
McGraw Hill Pretax Margin % Related Terms
McGraw Hill Pretax Margin % Historical Data
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The historical data trend for McGraw Hill'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.
FRA:1LI vs STRA, COUR, LINC: Pretax Margin % Comparison
For the Education & Training Services subindustry, McGraw Hill'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.
McGraw Hill Pretax Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, McGraw Hill's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where McGraw Hill'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.
McGraw Hill (FRA:1LI) has a Pretax Margin % of -11.37% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on McGraw Hill and its competitors. According to the industry distribution chart, McGraw Hill ranks #177 out of 256 companies in the Education industry, placing it in the top 69.1%.
Is McGraw Hill's Pretax Margin % too high?
McGraw Hill's current Pretax Margin % is -11.37%. Based on the distribution chart, McGraw Hill ranks #177 out of 256 companies in the Education industry, which is below the industry midpoint. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's Pretax Margin % compare to STRA and COUR?
According to the Education industry distribution chart, McGraw Hill ranks #177 out of 256 companies for Pretax Margin %. This places McGraw Hill in the lower half of its industry. The industry median Pretax Margin % is 8.25. 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 an Education company?
The median Pretax Margin % among Education companies is 8.25, based on 256 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. 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 McGraw Hill and its competitors. For the Education industry, the median Pretax Margin % is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGraw Hill's current Pretax Margin % is -11.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (FRA:1LI) has a current Pretax Margin % of -11.37%. The current Pretax Margin % is -11.37%. McGraw Hill's overall GF Score™ is 31/100 with 5 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 McGraw Hill (FRA:1LI), the current Pretax Margin % is -11.37% 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.
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
31GF Score
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