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PACCARHAM:PAE +0.39%81 Pretax Margin % is 11.46% as of Mar. 2026, which is 1% below its 10-year median of 11.57. GuruFocus rates HAM:PAE with a GF Score™ of 81/100 and a GF Value™ of €75.89. The stock has 7 warning signs investors should review. Among 211 Farm & Heavy Construction Machinery companies, PACCAR ranks better than 70.62% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. PACCAR's Pre-Tax Income for the
three
months ended in Mar. 2026 was €671 Mil. PACCAR's Revenue for the
three
months ended in Mar. 2026 was €5,862 Mil. Therefore, PACCAR's pretax margin for the quarter that ended in Mar. 2026 was 11.46%.
The historical rank and industry rank for PACCAR's Pretax Margin % or its related term are showing as below:
HAM:PAE'
s Pretax Margin % Range Over the Past 10 Years
Min: 6.64 Med: 11.57 Max: 16.28
Current: 11.36
HAM:PAE's Pretax Margin % is ranked better than 70.62% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.54
vs HAM:PAE: 11.36
PACCAR (HAM:PAE) 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.
PACCAR Pretax Margin % Related Terms
PACCAR Pretax Margin % Historical Data
* Premium members only.
The historical data trend for PACCAR'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.
HAM:PAE vs CNH, OSK, AGCO: Pretax Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, PACCAR'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.
PACCAR Pretax Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, PACCAR's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where PACCAR'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.
PACCAR (HAM:PAE) has a Pretax Margin % of 11.46% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on PACCAR and its competitors. This is near median its historical median of 11.57. Over the past decade, PACCAR's Pretax Margin % has ranged from 6.64 to 16.28. According to the industry distribution chart, PACCAR ranks #62 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 29.4%.
Is PACCAR's Pretax Margin % too high?
PACCAR's current Pretax Margin % of 11.46% is near median its 10-year median of 11.57. Over the past 10 years, this metric has ranged from a low of 6.64 to a high of 16.28. The Farm & Heavy Construction Machinery industry median Pretax Margin % is 6.54. PACCAR's value of 11.46% is 75.2% above this industry median. Based on the distribution chart, PACCAR ranks #62 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, PACCAR has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does PACCAR's Pretax Margin % compare to CNH and OSK?
According to the Farm & Heavy Construction Machinery industry distribution chart, PACCAR ranks #62 out of 211 companies for Pretax Margin %. This puts PACCAR in the upper half of its industry. The industry median Pretax Margin % is 6.54. PACCAR's value of 11.46% is 75.2% above this benchmark. Historically, PACCAR's own Pretax Margin % has ranged from 6.64 to 16.28 over the past decade. While the company's 10-year median is 11.57 vs. the industry median of 6.54, PACCAR 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 Farm & Heavy Construction Machinery company?
The median Pretax Margin % among Farm & Heavy Construction Machinery companies is 6.54, based on 211 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. PACCAR's current Pretax Margin % of 11.46% is 75.2% 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 PACCAR and its competitors. For the Farm & Heavy Construction Machinery industry, the median Pretax Margin % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PACCAR's current Pretax Margin % is 11.46%, which is near median its own 10-year median of 11.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PACCAR stock overvalued right now?
PACCAR (HAM:PAE) has a current Pretax Margin % of 11.46%. The stock's GF Value™ is €75.89, compared to a current price of €117.14 — trading 54.4% above its estimated fair value. The current Pretax Margin % is 11.46%, which is near median its 10-year median of 11.57 and 75.2% above the Farm & Heavy Construction Machinery industry median of 6.54. PACCAR's overall GF Score™ is 81/100 with 7 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 PACCAR (HAM:PAE), the current Pretax Margin % is 11.46% 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 PACCAR (HAM:PAE) Overvalued in 2026?
Based on GuruFocus' analysis, PACCAR stock appears to be overvalued.
The current stock price of €117.14 is trading 54.4% above its estimated GF Value™ of €75.89.
Key valuation signals for HAM:PAE:
Pretax Margin %: 11.46% (near median its 10-year median of 11.57)
GF Value™: €75.89 vs. price of €117.14 (54.4% above fair value)
Industry Position: 75.2% above the Farm & Heavy Construction Machinery median (#62 of 211)
No single metric tells the full story. See the HAM:PAE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paccar is a leading manufacturer of medium- and heavy-duty trucks under the premium nameplates Kenworth and Peterbilt, which are primarily sold in the Americas and Australia, and DAF, which primarily services Europe and South America. The trucks segment (74% sales) goes to market through a network of 2,200 independent dealers. Paccar maintains an internal finance subsidiary that provides retail and wholesale financing for customers and dealers (6% sales). In recent years, Paccar has aggressively expanded its parts business (20% of sales), including engines, axles, and transmissions for its own truck brands as well as independent producers. The company commands 30% of the Class 8 market share in North America and 15% of the heavy-duty market share in Europe.
81GF Score
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