Simcere Pharmaceutical Group (FRA:S2P) Pretax Margin %: 20.54% (As of Dec. 2025) — 15% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:S2P Simcere Pharmaceutical Group Ltd FRA:S2P
86 GF Score
Price €1.36
GF Value €1.15
Valuation Modestly Overvalued
View Full Analysis

What is Simcere Pharmaceutical Group Pretax Margin %?

Simcere Pharmaceutical Group FRA:S2P -2.86% 86 Pretax Margin % is 20.54% as of Dec. 2025, which is 15% above its 10-year median of 17.86. GuruFocus rates FRA:S2P with a GF Score™ of 86/100 and a GF Value™ of €1.15 (Modestly Overvalued). Among 959 Drug Manufacturers companies, Simcere Pharmaceutical Group ranks better than 80.5% on this metric.

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Simcere Pharmaceutical Group's Pre-Tax Income for the six months ended in Dec. 2025 was €103.3 Mil. Simcere Pharmaceutical Group's Revenue for the six months ended in Dec. 2025 was €502.8 Mil. Therefore, Simcere Pharmaceutical Group's pretax margin for the quarter that ended in Dec. 2025 was 20.54%.

The historical rank and industry rank for Simcere Pharmaceutical Group's Pretax Margin % or its related term are showing as below:

FRA:S2P' s Pretax Margin % Range Over the Past 10 Years
Min: 11.2   Med: 17.86   Max: 28.04
Current: 19.59


FRA:S2P's Pretax Margin % is ranked better than
80.5% of 959 companies
in the Drug Manufacturers industry
Industry Median: 7.28 vs FRA:S2P: 19.59

Simcere Pharmaceutical Group  (FRA:S2P) 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.


Simcere Pharmaceutical Group Pretax Margin % Related Terms


Simcere Pharmaceutical Group Pretax Margin % Historical Data

* Premium members only.

The historical data trend for Simcere Pharmaceutical Group'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.

Simcere Pharmaceutical Group Pretax Margin % Chart

Simcere Pharmaceutical Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Pretax Margin %
Get a 7-Day Free Trial Premium Member Only 28.04 14.01 11.20 12.19 19.59

Simcere Pharmaceutical Group Semi-Annual Data
Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Pretax Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -49.11 15.89 8.92 18.48 20.54

FRA:S2P vs ZTS, UTHR: Pretax Margin % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Simcere Pharmaceutical Group'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.


Simcere Pharmaceutical Group Pretax Margin % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Simcere Pharmaceutical Group's Pretax Margin % distribution charts can be found below:

* The bar in red indicates where Simcere Pharmaceutical Group's Pretax Margin % falls into.


FRA:S2P
86GF Score
Simcere Pharmaceutical Group Ltd FRA:S2P
Pretax Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Simcere Pharmaceutical Group Pretax Margin % Calculation

Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.

Simcere Pharmaceutical Group's Pretax Margin for the fiscal year that ended in Dec. 2025 is calculated as

Pretax Margin=Pre-Tax Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=183.615/937.447
=19.59 %

Simcere Pharmaceutical Group's Pretax Margin for the quarter that ended in Dec. 2025 is calculated as

Pretax Margin=Pre-Tax Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=103.288/502.77
=20.54 %

* 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.

Frequently Asked Questions Learn more about Pretax Margin % →
What does a Pretax Margin % of 20.54% mean?
Simcere Pharmaceutical Group (FRA:S2P) has a Pretax Margin % of 20.54% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Simcere Pharmaceutical Group and its competitors. This is 15% above median its historical median of 17.86. Over the past decade, Simcere Pharmaceutical Group's Pretax Margin % has ranged from 11.20 to 28.04. According to the industry distribution chart, Simcere Pharmaceutical Group ranks #187 out of 959 companies in the Drug Manufacturers industry, placing it in the top 19.5%.
Is Simcere Pharmaceutical Group's Pretax Margin % too high?
Simcere Pharmaceutical Group's current Pretax Margin % of 20.54% is 15% above median its 10-year median of 17.86. Over the past 10 years, this metric has ranged from a low of 11.20 to a high of 28.04. The Drug Manufacturers industry median Pretax Margin % is 7.28. Simcere Pharmaceutical Group's value of 20.54% is 182.1% above this industry median. Based on the distribution chart, Simcere Pharmaceutical Group ranks #187 out of 959 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Simcere Pharmaceutical Group has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Simcere Pharmaceutical Group's Pretax Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Simcere Pharmaceutical Group ranks #187 out of 959 companies for Pretax Margin %. This places Simcere Pharmaceutical Group in the top 20% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 7.28. Simcere Pharmaceutical Group's value of 20.54% is 182.1% above this benchmark. Historically, Simcere Pharmaceutical Group's own Pretax Margin % has ranged from 11.20 to 28.04 over the past decade. While the company's 10-year median is 17.86 vs. the industry median of 7.28, Simcere Pharmaceutical Group 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 959 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. Simcere Pharmaceutical Group's current Pretax Margin % of 20.54% is 182.1% 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 Simcere Pharmaceutical Group 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. Simcere Pharmaceutical Group's current Pretax Margin % is 20.54%, which is 15% above median its own 10-year median of 17.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simcere Pharmaceutical Group stock overvalued right now?
Based on GuruFocus' analysis, Simcere Pharmaceutical Group (FRA:S2P) is currently considered Modestly Overvalued. The stock's GF Value™ is €1.15, compared to a current price of €1.36 — trading 18.3% above its estimated fair value. The current Pretax Margin % is 20.54%, which is 15% above median its 10-year median of 17.86 and 182.1% above the Drug Manufacturers industry median of 7.28. Simcere Pharmaceutical Group's overall GF Score™ is 86/100. 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 Simcere Pharmaceutical Group (FRA:S2P), the current Pretax Margin % is 20.54% 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 Simcere Pharmaceutical Group (FRA:S2P) Overvalued in 2026?

Based on GuruFocus' analysis, Simcere Pharmaceutical Group stock appears to be overvalued. The current stock price of €1.36 is trading 18.3% above its estimated GF Value™ of €1.15. GuruFocus considers Simcere Pharmaceutical Group to be Modestly Overvalued.

Key valuation signals for FRA:S2P:

  • Pretax Margin %: 20.54% (15% above median its 10-year median of 17.86)
  • GF Value™: €1.15 vs. price of €1.36 (18.3% above fair value)
  • GF Score™: 86/100
  • Industry Position: 182.1% above the Drug Manufacturers median (#187 of 959)

No single metric tells the full story. See the FRA:S2P stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Simcere Pharmaceutical Group Business Description

Other Exchanges 02096:Hong KongS2P:Germany
Address No. 699-18, Xuanwu Road, Xuanwu District, Jiangsu Province, Nanjing, CHN, 210042
Simcere Pharmaceutical Group Ltd is engaged in the R&D, production, and commercialization of pharmaceuticals focused on generic pharmaceuticals. The company has a diversified product portfolio focused on therapeutic areas, including, neuroscience, anti-oncology, autoimmune, and antiinfection. The company's products include Endostar, Enweida, Enzeshu, Iremod, Quviviq, Cosela, Sanbexin and Others.
86GF Score

Get the complete analysis for FRA:S2P

Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1.36
Price
€1.15
GF Value