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.
Resources Connection Pretax Margin % Related Terms
Resources Connection Pretax Margin % Historical Data
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The historical data trend for Resources Connection'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:RCO vs FORR, GLAI, EUBG: Pretax Margin % Comparison
For the Consulting Services subindustry, Resources Connection'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.
Resources Connection Pretax Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Resources Connection's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Resources Connection'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.
Resources Connection (FRA:RCO) has a Pretax Margin % of -8.13% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Resources Connection and its competitors. According to the industry distribution chart, Resources Connection ranks #954 out of 1074 companies in the Business Services industry, placing it in the top 88.8%.
Is Resources Connection's Pretax Margin % too high?
Resources Connection's current Pretax Margin % is -8.13%. Based on the distribution chart, Resources Connection ranks #954 out of 1074 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Resources Connection has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Resources Connection's Pretax Margin % compare to FORR and GLAI?
According to the Business Services industry distribution chart, Resources Connection ranks #954 out of 1074 companies for Pretax Margin %. This places Resources Connection in the lower half of its industry. The industry median Pretax Margin % is 5.33. 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. 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 Resources Connection 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. Resources Connection's current Pretax Margin % is -8.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resources Connection stock overvalued right now?
Resources Connection (FRA:RCO) has a current Pretax Margin % of -8.13%. The stock's GF Value™ is €5.73, compared to a current price of €3.76 — trading 34.4% below its estimated fair value. The current Pretax Margin % is -8.13%. Resources Connection's overall GF Score™ is 60/100 with 6 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 Resources Connection (FRA:RCO), the current Pretax Margin % is -8.13% as of Feb. 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 Resources Connection (FRA:RCO) Overvalued in 2026?
Based on GuruFocus' analysis, Resources Connection stock appears to be undervalued.
The current stock price of €3.76 is trading 34.4% below its estimated GF Value™ of €5.73.
Key valuation signals for FRA:RCO:
Pretax Margin %: -8.13%
GF Value™: €5.73 vs. price of €3.76 (34.4% below fair value)
No single metric tells the full story. See the FRA:RCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Resources Connection Inc provides consulting and business initiative support services predominantly through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Sitrick. The RGP segment is focused on delivering consulting services catering to its client's operational needs and change initiatives utilizing a combination of bench and on-demand, talent. The Sitrick segment provides corporate, financial, transactional, and crisis communication and management services. The company generates a majority of its revenue from the RGP segment. Geographically, it derives its key revenue from North America and the rest from Europe and the Asia Pacific region.
60GF Score
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