Softronic ABFRA:SF7 -0.21%74 Pretax Margin % is 8.78% as of Mar. 2026, which is 17% below its 10-year median of 10.56. GuruFocus rates FRA:SF7 with a GF Score™ of 74/100 and a GF Value™ of €2.23 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,821 Software companies, Softronic AB ranks better than 66.93% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Softronic AB's Pre-Tax Income for the
three
months ended in Mar. 2026 was €2.25 Mil. Softronic AB's Revenue for the
three
months ended in Mar. 2026 was €25.61 Mil. Therefore, Softronic AB's pretax margin for the quarter that ended in Mar. 2026 was 8.78%.
The historical rank and industry rank for Softronic AB's Pretax Margin % or its related term are showing as below:
FRA:SF7'
s Pretax Margin % Range Over the Past 10 Years
Min: 6.87 Med: 10.56 Max: 12.76
Current: 9.23
FRA:SF7's Pretax Margin % is ranked better than 66.93% of 2821
companies
in the Software industry
Industry Median: 3.5
vs FRA:SF7: 9.23
Softronic AB (FRA:SF7) 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.
Softronic AB Pretax Margin % Related Terms
Softronic AB Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Softronic AB'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:SF7 vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, Softronic AB'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.
Softronic AB Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Softronic AB's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Softronic AB'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.
Softronic AB (FRA:SF7) has a Pretax Margin % of 8.78% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Softronic AB and its competitors. This is 17% below median its historical median of 10.56. Over the past decade, Softronic AB's Pretax Margin % has ranged from 6.87 to 12.76. According to the industry distribution chart, Softronic AB ranks #933 out of 2821 companies in the Software industry, placing it in the top 33.1%.
Is Softronic AB's Pretax Margin % too high?
Softronic AB's current Pretax Margin % of 8.78% is 17% below median its 10-year median of 10.56. Over the past 10 years, this metric has ranged from a low of 6.87 to a high of 12.76. The Software industry median Pretax Margin % is 3.50. Softronic AB's value of 8.78% is 150.9% above this industry median. Based on the distribution chart, Softronic AB ranks #933 out of 2821 companies in the Software industry, which is above the industry midpoint. Overall, Softronic AB has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softronic AB's Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Softronic AB ranks #933 out of 2821 companies for Pretax Margin %. This puts Softronic AB in the upper half of its industry. The industry median Pretax Margin % is 3.50. Softronic AB's value of 8.78% is 150.9% above this benchmark. Historically, Softronic AB's own Pretax Margin % has ranged from 6.87 to 12.76 over the past decade. While the company's 10-year median is 10.56 vs. the industry median of 3.50, Softronic AB 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 Software company?
The median Pretax Margin % among Software companies is 3.50, based on 2,821 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. Softronic AB's current Pretax Margin % of 8.78% is 150.9% 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 Softronic AB and its competitors. For the Software industry, the median Pretax Margin % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softronic AB's current Pretax Margin % is 8.78%, which is 17% below median its own 10-year median of 10.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softronic AB stock overvalued right now?
Based on GuruFocus' analysis, Softronic AB (FRA:SF7) is currently considered Modestly Undervalued. The stock's GF Value™ is €2.23, compared to a current price of €1.92 — trading 13.9% below its estimated fair value. The current Pretax Margin % is 8.78%, which is 17% below median its 10-year median of 10.56 and 150.9% above the Software industry median of 3.50. Softronic AB's overall GF Score™ is 74/100 with 3 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 Softronic AB (FRA:SF7), the current Pretax Margin % is 8.78% 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 Softronic AB (FRA:SF7) Overvalued in 2026?
Based on GuruFocus' analysis, Softronic AB stock appears to be undervalued.
The current stock price of €1.92 is trading 13.9% below its estimated GF Value™ of €2.23.
GuruFocus considers Softronic AB to be Modestly Undervalued.
Key valuation signals for FRA:SF7:
Pretax Margin %: 8.78% (17% below median its 10-year median of 10.56)
GF Value™: €2.23 vs. price of €1.92 (13.9% below fair value)
Industry Position: 150.9% above the Software median (#933 of 2821)
No single metric tells the full story. See the FRA:SF7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softronic AB provides a wide selection of IT and management services in Sweden. The company offers E-commerce platform, insurance systems, digitalization, E-health, digital sales platform, scanning, modern outsourcing, managed services, cyber defense as services and customer care system.
74GF Score
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