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VSTECS HoldingsHKSE:00856 -5.11%88 Pretax Margin % is 1.80% as of Dec. 2025, which is 16% above its 10-year median of 1.55. GuruFocus rates HKSE:00856 with a GF Score™ of 88/100 and a GF Value™ of HK$6.41 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,832 Software companies, VSTECS Holdings ranks worse than 54.98% on this metric.
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.
VSTECS Holdings Pretax Margin % Related Terms
VSTECS Holdings Pretax Margin % Historical Data
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The historical data trend for VSTECS Holdings'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.
HKSE:00856 vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, VSTECS Holdings'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.
VSTECS Holdings Pretax Margin % vs Software Industry
For the Software industry and Technology sector, VSTECS Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where VSTECS Holdings'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.
VSTECS Holdings (HKSE:00856) has a Pretax Margin % of 1.80% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on VSTECS Holdings and its competitors. This is 16% above median its historical median of 1.55. Over the past decade, VSTECS Holdings' Pretax Margin % has ranged from 1.40 to 1.99. According to the industry distribution chart, VSTECS Holdings ranks #1557 out of 2832 companies in the Software industry, placing it in the top 55%.
Is VSTECS Holdings' Pretax Margin % too high?
VSTECS Holdings' current Pretax Margin % of 1.80% is 16% above median its 10-year median of 1.55. Over the past 10 years, this metric has ranged from a low of 1.40 to a high of 1.99. The Software industry median Pretax Margin % is 3.61. VSTECS Holdings' value of 1.80% is 50.1% below this industry median. Based on the distribution chart, VSTECS Holdings ranks #1557 out of 2832 companies in the Software industry, which is below the industry midpoint. Overall, VSTECS Holdings has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does VSTECS Holdings' Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, VSTECS Holdings ranks #1557 out of 2832 companies for Pretax Margin %. This places VSTECS Holdings in the lower half of its industry. The industry median Pretax Margin % is 3.61. VSTECS Holdings' value of 1.80% is 50.1% below this benchmark. Historically, VSTECS Holdings' own Pretax Margin % has ranged from 1.40 to 1.99 over the past decade. While the company's 10-year median is 1.55 vs. the industry median of 3.61, VSTECS Holdings has consistently been below 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 3.61, based on 2,832 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. VSTECS Holdings's current Pretax Margin % of 1.80% is 50.1% below 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 VSTECS Holdings and its competitors. For the Software industry, the median Pretax Margin % is 3.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VSTECS Holdings's current Pretax Margin % is 1.80%, which is 16% above median its own 10-year median of 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VSTECS Holdings stock overvalued right now?
Based on GuruFocus' analysis, VSTECS Holdings (HKSE:00856) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$6.41, compared to a current price of HK$9.09 — trading 41.8% above its estimated fair value. The current Pretax Margin % is 1.80%, which is 16% above median its 10-year median of 1.55 and 50.1% below the Software industry median of 3.61. VSTECS Holdings' overall GF Score™ is 88/100 with 2 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 VSTECS Holdings (HKSE:00856), the current Pretax Margin % is 1.80% 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 VSTECS Holdings (HKSE:00856) Overvalued in 2026?
Based on GuruFocus' analysis, VSTECS Holdings stock appears to be overvalued.
The current stock price of HK$9.09 is trading 41.8% above its estimated GF Value™ of HK$6.41.
GuruFocus considers VSTECS Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00856:
Pretax Margin %: 1.80% (16% above median its 10-year median of 1.55)
GF Value™: HK$6.41 vs. price of HK$9.09 (41.8% above fair value)
Industry Position: 50.1% below the Software median (#1557 of 2832)
No single metric tells the full story. See the HKSE:00856 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VSTECS Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the development of an information technology (IT) product channel and the provision of technical solution integration services. The group's business segments include Consumer electronics, Enterprise systems, and Cloud computing. A majority of its revenue is generated from the Enterprise systems segment, which provides enterprise system tools (middleware, operating systems, Unix/NT servers, databases, and storage) for IT infrastructure and IT infrastructure design and implementation, training, maintenance, and support services. Geographically, the group generates maximum revenue from North Asia and the rest from Southeast Asia.
88GF Score
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