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Deep Source HoldingsHKSE:00990 -3.77%53 Pretax Margin % is 4.65% as of Dec. 2025, which is 97% above its 10-year median of 2.36. GuruFocus rates HKSE:00990 with a GF Score™ of 53/100 and a GF Value™ of HK$0.22 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 612 Steel companies, Deep Source Holdings ranks better than 60.95% on this metric.
The historical rank and industry rank for Deep Source Holdings's Pretax Margin % or its related term are showing as below:
HKSE:00990'
s Pretax Margin % Range Over the Past 10 Years
Min: -1.62 Med: 2.36 Max: 4.45
Current: 4.34
HKSE:00990's Pretax Margin % is ranked better than 60.95% of 612
companies
in the Steel industry
Industry Median: 2.69
vs HKSE:00990: 4.34
Deep Source Holdings (HKSE:00990) 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.
Deep Source Holdings Pretax Margin % Related Terms
Deep Source Holdings Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Deep Source 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:00990 vs NUE, STLD, RS: Pretax Margin % Comparison
For the Steel subindustry, Deep Source 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.
Deep Source Holdings Pretax Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Deep Source Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Deep Source 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.
Deep Source Holdings (HKSE:00990) has a Pretax Margin % of 4.65% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Deep Source Holdings and its competitors. This is 97% above median its historical median of 2.36. According to the industry distribution chart, Deep Source Holdings ranks #239 out of 612 companies in the Steel industry, placing it in the top 39.1%.
Is Deep Source Holdings' Pretax Margin % too high?
Deep Source Holdings' current Pretax Margin % of 4.65% is 97% above median its 10-year median of 2.36. The Steel industry median Pretax Margin % is 2.69. Deep Source Holdings' value of 4.65% is 72.9% above this industry median. Based on the distribution chart, Deep Source Holdings ranks #239 out of 612 companies in the Steel industry, which is above the industry midpoint. Overall, Deep Source Holdings has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deep Source Holdings' Pretax Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Deep Source Holdings ranks #239 out of 612 companies for Pretax Margin %. This puts Deep Source Holdings in the upper half of its industry. The industry median Pretax Margin % is 2.69. Deep Source Holdings' value of 4.65% is 72.9% above this benchmark. While the company's 10-year median is 2.36 vs. the industry median of 2.69, Deep Source Holdings 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 Steel company?
The median Pretax Margin % among Steel companies is 2.69, based on 612 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. Deep Source Holdings's current Pretax Margin % of 4.65% is 72.9% 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 Deep Source Holdings and its competitors. For the Steel industry, the median Pretax Margin % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deep Source Holdings's current Pretax Margin % is 4.65%, which is 97% above median its own 10-year median of 2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deep Source Holdings stock overvalued right now?
Based on GuruFocus' analysis, Deep Source Holdings (HKSE:00990) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.22, compared to a current price of HK$0.51 — trading 131.8% above its estimated fair value. The current Pretax Margin % is 4.65%, which is 97% above median its 10-year median of 2.36 and 72.9% above the Steel industry median of 2.69. Deep Source Holdings' overall GF Score™ is 53/100 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 Deep Source Holdings (HKSE:00990), the current Pretax Margin % is 4.65% 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 Deep Source Holdings (HKSE:00990) Overvalued in 2026?
Based on GuruFocus' analysis, Deep Source Holdings stock appears to be overvalued.
The current stock price of HK$0.51 is trading 131.8% above its estimated GF Value™ of HK$0.22.
GuruFocus considers Deep Source Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00990:
Pretax Margin %: 4.65% (97% above median its 10-year median of 2.36)
GF Value™: HK$0.22 vs. price of HK$0.51 (131.8% above fair value)
Industry Position: 72.9% above the Steel median (#239 of 612)
No single metric tells the full story. See the HKSE:00990 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deep Source Holdings Ltd and its subsidiaries are principally engaged in two business segments. The distribution, trading, and processing business segment involves the distribution, trading, and processing of bulk commodities and related products in Hong Kong, Singapore, and the People's Republic of China. Financial services business segment that involves the provision of securities and derivatives financial services, margin financing, and fund management in Hong Kong and Singapore. It generates a vast majority of revenues from the distribution, trading, and processing segment in Singapore.
53GF Score
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