Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. ADT's Pre-Tax Income for the
three
months ended in Mar. 2026 was €196 Mil. ADT's Revenue for the
three
months ended in Mar. 2026 was €1,105 Mil. Therefore, ADT's pretax margin for the quarter that ended in Mar. 2026 was 17.76%.
The historical rank and industry rank for ADT's Pretax Margin % or its related term are showing as below:
FRA:541'
s Pretax Margin % Range Over the Past 10 Years
Min: -27.21 Med: -9.98 Max: 16.88
Current: 16.88
FRA:541's Pretax Margin % is ranked better than 82.59% of 1074
companies
in the Business Services industry
Industry Median: 5.325
vs FRA:541: 16.88
ADT (FRA:541) 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.
ADT Pretax Margin % Related Terms
ADT Pretax Margin % Historical Data
* Premium members only.
The historical data trend for ADT'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:541 vs BRC, GEO, BCO: Pretax Margin % Comparison
For the Security & Protection Services subindustry, ADT'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.
ADT Pretax Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, ADT's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where ADT'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.
ADT (FRA:541) has a Pretax Margin % of 17.76% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on ADT and its competitors. According to the industry distribution chart, ADT ranks #187 out of 1074 companies in the Business Services industry, placing it in the top 17.4%.
Is ADT's Pretax Margin % too high?
ADT's current Pretax Margin % is 17.76%. The Business Services industry median Pretax Margin % is 5.33. ADT's value of 17.76% is 233.5% above this industry median. Based on the distribution chart, ADT ranks #187 out of 1074 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, ADT has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does ADT's Pretax Margin % compare to BRC and GEO?
According to the Business Services industry distribution chart, ADT ranks #187 out of 1074 companies for Pretax Margin %. This places ADT in the top 17% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.33. ADT's value of 17.76% is 233.5% above this benchmark. 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 Business Services company?
The median Pretax Margin % among Business Services companies is 5.33, based on 1,074 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. ADT's current Pretax Margin % of 17.76% is 233.5% 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 ADT and its competitors. For the Business Services industry, the median Pretax Margin % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ADT's current Pretax Margin % is 17.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ADT stock overvalued right now?
ADT (FRA:541) has a current Pretax Margin % of 17.76%. The stock's GF Value™ is €7.40, compared to a current price of €5.90 — trading 20.3% below its estimated fair value. The current Pretax Margin % is 17.76% and 233.5% above the Business Services industry median of 5.33. ADT's overall GF Score™ is 66/100 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 ADT (FRA:541), the current Pretax Margin % is 17.76% 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 ADT (FRA:541) Overvalued in 2026?
Based on GuruFocus' analysis, ADT stock appears to be undervalued.
The current stock price of €5.90 is trading 20.3% below its estimated GF Value™ of €7.40.
Key valuation signals for FRA:541:
Pretax Margin %: 17.76%
GF Value™: €7.40 vs. price of €5.90 (20.3% below fair value)
Industry Position: 233.5% above the Business Services median (#187 of 1074)
No single metric tells the full story. See the FRA:541 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ADT Inc is a provider of security, interactive, and smart home solutions serving consumer and small business customers in the United States (U.S.). The Company conducts business under the ADT brand name.
66GF Score
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Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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