XiaomiHAM:3CP -1.77%88 Pretax Margin % is 5.78% as of Mar. 2026, which is 24% below its 10-year median of 7.57. GuruFocus rates HAM:3CP with a GF Score™ of 88/100 and a GF Value™ of €3.72 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,476 Hardware companies, Xiaomi ranks better than 72.37% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Xiaomi's Pre-Tax Income for the
three
months ended in Mar. 2026 was €719 Mil. Xiaomi's Revenue for the
three
months ended in Mar. 2026 was €12,443 Mil. Therefore, Xiaomi's pretax margin for the quarter that ended in Mar. 2026 was 5.78%.
The historical rank and industry rank for Xiaomi's Pretax Margin % or its related term are showing as below:
HAM:3CP'
s Pretax Margin % Range Over the Past 10 Years
Min: -36.49 Med: 7.57 Max: 10.86
Current: 9.44
HAM:3CP's Pretax Margin % is ranked better than 72.37% of 2476
companies
in the Hardware industry
Industry Median: 3.58
vs HAM:3CP: 9.44
Xiaomi (HAM:3CP) 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.
Xiaomi Pretax Margin % Related Terms
Xiaomi Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Xiaomi'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.
For the Consumer Electronics subindustry, Xiaomi'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.
Xiaomi Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Xiaomi's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Xiaomi'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.
Xiaomi (HAM:3CP) has a Pretax Margin % of 5.78% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Xiaomi and its competitors. This is 24% below median its historical median of 7.57. According to the industry distribution chart, Xiaomi ranks #684 out of 2476 companies in the Hardware industry, placing it in the top 27.6%.
Is Xiaomi's Pretax Margin % too high?
Xiaomi's current Pretax Margin % of 5.78% is 24% below median its 10-year median of 7.57. The Hardware industry median Pretax Margin % is 3.58. Xiaomi's value of 5.78% is 61.5% above this industry median. Based on the distribution chart, Xiaomi ranks #684 out of 2476 companies in the Hardware industry, which is above the industry midpoint. Overall, Xiaomi has a GF Score™ of 88/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xiaomi's Pretax Margin % compare to AAPL?
According to the Hardware industry distribution chart, Xiaomi ranks #684 out of 2476 companies for Pretax Margin %. This puts Xiaomi in the upper half of its industry. The industry median Pretax Margin % is 3.58. Xiaomi's value of 5.78% is 61.5% above this benchmark. While the company's 10-year median is 7.57 vs. the industry median of 3.58, Xiaomi 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 Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,476 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. Xiaomi's current Pretax Margin % of 5.78% is 61.5% 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 Xiaomi and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiaomi's current Pretax Margin % is 5.78%, which is 24% below median its own 10-year median of 7.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiaomi stock overvalued right now?
Based on GuruFocus' analysis, Xiaomi (HAM:3CP) is currently considered Possible Value Trap. The stock's GF Value™ is €3.72, compared to a current price of €2.44 — trading 34.5% below its estimated fair value. The current Pretax Margin % is 5.78%, which is 24% below median its 10-year median of 7.57 and 61.5% above the Hardware industry median of 3.58. Xiaomi's overall GF Score™ is 88/100 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 Xiaomi (HAM:3CP), the current Pretax Margin % is 5.78% 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 Xiaomi (HAM:3CP) Overvalued in 2026?
Based on GuruFocus' analysis, Xiaomi stock appears to be undervalued.
The current stock price of €2.44 is trading 34.5% below its estimated GF Value™ of €3.72.
GuruFocus considers Xiaomi to be Possible Value Trap.
Key valuation signals for HAM:3CP:
Pretax Margin %: 5.78% (24% below median its 10-year median of 7.57)
GF Value™: €3.72 vs. price of €2.44 (34.5% below fair value)
Industry Position: 61.5% above the Hardware median (#684 of 2476)
No single metric tells the full story. See the HAM:3CP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiaomi is a technology company providing products and services, founded in early 2010, focusing mainly on smartphones, Internet of Things products, and related internet services. An early adopter of online smartphone sales, Xiaomi uses a customized Android operating system called HyperOS and has recently designed its own system-on-chip. As competition in its home Chinese smartphone market intensified and growth has slowed, it has expanded into other markets and has become the smartphone market leader in India, and is gaining market share in Europe. In 2025, from a country perspective, around 67% of its overall revenue was generated in mainland China, but this should reduce when it sells EVs overseas. The company was listed on the Hong Kong market at the beginning of July 2018.
88GF Score
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