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Kantone HoldingsHKSE:01059 52 Pretax Margin % is 6.69% as of Dec. 2025, which is 256% above its 10-year median of 1.88. GuruFocus rates HKSE:01059 with a GF Score™ of 52/100 and a GF Value™ of HK$0.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,832 Software companies, Kantone Holdings ranks better than 73.45% 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.
Kantone Holdings Pretax Margin % Related Terms
Kantone Holdings Pretax Margin % Historical Data
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The historical data trend for Kantone 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:01059 vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, Kantone 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.
Kantone Holdings Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Kantone Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Kantone 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.
Kantone Holdings (HKSE:01059) has a Pretax Margin % of 6.69% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Kantone Holdings and its competitors. This is 256% above median its historical median of 1.88. According to the industry distribution chart, Kantone Holdings ranks #752 out of 2832 companies in the Software industry, placing it in the top 26.6%.
Is Kantone Holdings' Pretax Margin % too high?
Kantone Holdings' current Pretax Margin % of 6.69% is 256% above median its 10-year median of 1.88. The Software industry median Pretax Margin % is 3.61. Kantone Holdings' value of 6.69% is 85.6% above this industry median. Based on the distribution chart, Kantone Holdings ranks #752 out of 2832 companies in the Software industry, which is above the industry midpoint. Overall, Kantone Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kantone Holdings' Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kantone Holdings ranks #752 out of 2832 companies for Pretax Margin %. This puts Kantone Holdings in the upper half of its industry. The industry median Pretax Margin % is 3.61. Kantone Holdings' value of 6.69% is 85.6% above this benchmark. While the company's 10-year median is 1.88 vs. the industry median of 3.61, Kantone 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 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. Kantone Holdings's current Pretax Margin % of 6.69% is 85.6% 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 Kantone 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. Kantone Holdings's current Pretax Margin % is 6.69%, which is 256% above median its own 10-year median of 1.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kantone Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kantone Holdings (HKSE:01059) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.37 — trading 46% above its estimated fair value. The current Pretax Margin % is 6.69%, which is 256% above median its 10-year median of 1.88 and 85.6% above the Software industry median of 3.61. Kantone Holdings' overall GF Score™ is 52/100 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 Kantone Holdings (HKSE:01059), the current Pretax Margin % is 6.69% 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 Kantone Holdings (HKSE:01059) Overvalued in 2026?
Based on GuruFocus' analysis, Kantone Holdings stock appears to be overvalued.
The current stock price of HK$0.37 is trading 46% above its estimated GF Value™ of HK$0.25.
GuruFocus considers Kantone Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01059:
Pretax Margin %: 6.69% (256% above median its 10-year median of 1.88)
GF Value™: HK$0.25 vs. price of HK$0.37 (46% above fair value)
Industry Position: 85.6% above the Software median (#752 of 2832)
No single metric tells the full story. See the HKSE:01059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kantone Holdings Ltd is an investment holding company. The company's operating segment includes Sales of cultural products; Technology: System sales including software licensing and services and Technology: Leasing of system products. It generates maximum revenue from the Technology: System sales including software licensing and services segment. Geographically, it derives a majority of its revenue from Europe (UK and Germany).
52GF Score
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