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Chinasoft InternationalHKSE:00354 -0.94%86 Pretax Margin % is 3.95% as of Jun. 2026, which is 41% below its 10-year median of 6.72. GuruFocus rates HKSE:00354 with a GF Score™ of 86/100 and a GF Value™ of HK$5.80 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 2,833 Software companies, Chinasoft International ranks worse than 52.59% on this metric.
Chinasoft International (HKSE:00354) 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.
Chinasoft International Pretax Margin % Related Terms
Chinasoft International Pretax Margin % Historical Data
* 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.
HKSE:00354 vs IBM, ACN, CTSH: Pretax Margin % Comparison
For the Information Technology Services subindustry, Chinasoft International'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.
Chinasoft International Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Chinasoft International's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Chinasoft International'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.
Chinasoft International (HKSE:00354) has a Pretax Margin % of 3.95% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Chinasoft International and its competitors. This is 41% below median its historical median of 6.72. Over the past decade, Chinasoft International's Pretax Margin % has ranged from 2.35 to 7.73. According to the industry distribution chart, Chinasoft International ranks #1490 out of 2833 companies in the Software industry, placing it in the top 52.6%.
Is Chinasoft International's Pretax Margin % too high?
Chinasoft International's current Pretax Margin % of 3.95% is 41% below median its 10-year median of 6.72. Over the past 10 years, this metric has ranged from a low of 2.35 to a high of 7.73. The Software industry median Pretax Margin % is 3.51. Chinasoft International's value of 3.95% is 12.5% above this industry median. Based on the distribution chart, Chinasoft International ranks #1490 out of 2833 companies in the Software industry, which is below the industry midpoint. Overall, Chinasoft International has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chinasoft International's Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Chinasoft International ranks #1490 out of 2833 companies for Pretax Margin %. This places Chinasoft International in the lower half of its industry. The industry median Pretax Margin % is 3.51. Chinasoft International's value of 3.95% is 12.5% above this benchmark. Historically, Chinasoft International's own Pretax Margin % has ranged from 2.35 to 7.73 over the past decade. While the company's 10-year median is 6.72 vs. the industry median of 3.51, Chinasoft International 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 3.51, based on 2,833 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. Chinasoft International's current Pretax Margin % of 3.95% is 12.5% 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 Chinasoft International and its competitors. For the Software industry, the median Pretax Margin % is 3.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinasoft International's current Pretax Margin % is 3.95%, which is 41% below median its own 10-year median of 6.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinasoft International stock overvalued right now?
Based on GuruFocus' analysis, Chinasoft International (HKSE:00354) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$5.80, compared to a current price of HK$3.67 — trading 36.7% below its estimated fair value. The current Pretax Margin % is 3.95%, which is 41% below median its 10-year median of 6.72 and 12.5% above the Software industry median of 3.51. Chinasoft International's overall GF Score™ is 86/100 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 Chinasoft International (HKSE:00354), the current Pretax Margin % is 3.95% as of Jun. 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 Chinasoft International (HKSE:00354) Overvalued in 2026?
Based on GuruFocus' analysis, Chinasoft International stock appears to be undervalued.
The current stock price of HK$3.67 is trading 36.7% below its estimated GF Value™ of HK$5.80.
GuruFocus considers Chinasoft International to be Significantly Undervalued.
Key valuation signals for HKSE:00354:
Pretax Margin %: 3.95% (41% below median its 10-year median of 6.72)
GF Value™: HK$5.80 vs. price of HK$3.67 (36.7% below fair value)
Industry Position: 12.5% above the Software median (#1490 of 2833)
No single metric tells the full story. See the HKSE:00354 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinasoft International Ltd is an investment holding company. The principal activities of the Company and its subsidiaries are development and provision of information technology (IT) solutions services, and IT outsourcing services. The company's Nature of goods and services Project-based development services, Outsourcing services, Other services, Sales of software and hardware products of which majority of revenue comes from Outsourcing services. The group now has only one operating segment. The Group's operations are mainly located in its country of domicile, the People's Republic of China. The company has presence in PRC, Malaysia, Japan, Saudi Arabia, Singapore, India, and Indonesia. The majority of revenue comes from PRC.
86GF Score
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