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Ares Commercial Real EstateFRA:41I +0.12%43 Pretax Margin % is 31.49% as of Jun. 2026, which is 42% below its 10-year median of 54.25. GuruFocus rates FRA:41I with a GF Score™ of 43/100 and a GF Value™ of €9.98 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 912 REITs companies, Ares Commercial Real Estate ranks worse than 86.84% on this metric.
Ares Commercial Real Estate (FRA:41I) 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.
Ares Commercial Real Estate Pretax Margin % Related Terms
Ares Commercial Real Estate 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.
FRA:41I vs REFI, RC, MITT: Pretax Margin % Comparison
For the REIT - Mortgage subindustry, Ares Commercial Real Estate'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.
Ares Commercial Real Estate Pretax Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Ares Commercial Real Estate'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.
Ares Commercial Real Estate (FRA:41I) has a Pretax Margin % of 31.49% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ares Commercial Real Estate and its competitors. This is 42% below median its historical median of 54.25. According to the industry distribution chart, Ares Commercial Real Estate ranks #792 out of 912 companies in the REITs industry, placing it in the top 86.8%.
Is Ares Commercial Real Estate's Pretax Margin % too high?
Ares Commercial Real Estate's current Pretax Margin % of 31.49% is 42% below median its 10-year median of 54.25. The REITs industry median Pretax Margin % is 47.87. Ares Commercial Real Estate's value of 31.49% is 34.2% below this industry median. Based on the distribution chart, Ares Commercial Real Estate ranks #792 out of 912 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Ares Commercial Real Estate has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ares Commercial Real Estate's Pretax Margin % compare to REFI and RC?
According to the REITs industry distribution chart, Ares Commercial Real Estate ranks #792 out of 912 companies for Pretax Margin %. This places Ares Commercial Real Estate in the lower half of its industry. The industry median Pretax Margin % is 47.87. Ares Commercial Real Estate's value of 31.49% is 34.2% below this benchmark. While the company's 10-year median is 54.25 vs. the industry median of 47.87, Ares Commercial Real Estate has consistently been below 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 REITs company?
The median Pretax Margin % among REITs companies is 47.87, based on 912 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. Ares Commercial Real Estate's current Pretax Margin % of 31.49% is 34.2% below 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 Ares Commercial Real Estate and its competitors. For the REITs industry, the median Pretax Margin % is 47.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Commercial Real Estate's current Pretax Margin % is 31.49%, which is 42% below median its own 10-year median of 54.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Commercial Real Estate stock overvalued right now?
Based on GuruFocus' analysis, Ares Commercial Real Estate (FRA:41I) is currently considered Possible Value Trap. The stock's GF Value™ is €9.98, compared to a current price of €4.06 — trading 59.3% below its estimated fair value. The current Pretax Margin % is 31.49%, which is 42% below median its 10-year median of 54.25 and 34.2% below the REITs industry median of 47.87. Ares Commercial Real Estate's overall GF Score™ is 43/100 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 Ares Commercial Real Estate (FRA:41I), the current Pretax Margin % is 31.49% as of Jun. 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 Ares Commercial Real Estate (FRA:41I) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Commercial Real Estate stock appears to be undervalued.
The current stock price of €4.06 is trading 59.3% below its estimated GF Value™ of €9.98.
GuruFocus considers Ares Commercial Real Estate to be Possible Value Trap.
Key valuation signals for FRA:41I:
Pretax Margin %: 31.49% (42% below median its 10-year median of 54.25)
GF Value™: €9.98 vs. price of €4.06 (59.3% below fair value)
Industry Position: 34.2% below the REITs median (#792 of 912)
No single metric tells the full story. See the FRA:41I stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Commercial Real Estate Corp is a specialty finance company and a real estate investment trust mainly engaged in originating and investing in commercial real estate (CRE) loans and related investments. It operates in one segment, namely originating and managing a diversified portfolio of CRE debt-related investments. The company recognizes the majority of its revenues in the form of interest income, which it receives from loans.
43GF Score
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