AECIJSE:AFE +0.49%62 Pretax Margin % is 4.18% as of Dec. 2025, which is 29% below its 10-year median of 5.92. GuruFocus rates JSE:AFE with a GF Score™ of 62/100 and a GF Value™ of R90.99 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,580 Chemicals companies, AECI ranks worse than 56.96% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. AECI's Pre-Tax Income for the
six
months ended in Dec. 2025 was R689 Mil. AECI's Revenue for the
six
months ended in Dec. 2025 was R16,494 Mil. Therefore, AECI's pretax margin for the quarter that ended in Dec. 2025 was 4.18%.
The historical rank and industry rank for AECI's Pretax Margin % or its related term are showing as below:
JSE:AFE'
s Pretax Margin % Range Over the Past 10 Years
Min: 2.75 Med: 5.92 Max: 7.64
Current: 3.78
JSE:AFE's Pretax Margin % is ranked worse than 56.96% of 1580
companies
in the Chemicals industry
Industry Median: 5.325
vs JSE:AFE: 3.78
AECI (JSE:AFE) 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.
AECI Pretax Margin % Related Terms
AECI Pretax Margin % Historical Data
* Premium members only.
The historical data trend for AECI'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.
JSE:AFE vs LIN, SHW, ECL: Pretax Margin % Comparison
For the Specialty Chemicals subindustry, AECI'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.
AECI Pretax Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, AECI's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where AECI'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.
AECI (JSE:AFE) has a Pretax Margin % of 4.18% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AECI and its competitors. This is 29% below median its historical median of 5.92. Over the past decade, AECI's Pretax Margin % has ranged from 2.75 to 7.64. According to the industry distribution chart, AECI ranks #900 out of 1580 companies in the Chemicals industry, placing it in the top 57%.
Is AECI's Pretax Margin % too high?
AECI's current Pretax Margin % of 4.18% is 29% below median its 10-year median of 5.92. Over the past 10 years, this metric has ranged from a low of 2.75 to a high of 7.64. The Chemicals industry median Pretax Margin % is 5.33. AECI's value of 4.18% is 21.5% below this industry median. Based on the distribution chart, AECI ranks #900 out of 1580 companies in the Chemicals industry, which is below the industry midpoint. Overall, AECI has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AECI's Pretax Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, AECI ranks #900 out of 1580 companies for Pretax Margin %. This places AECI in the lower half of its industry. The industry median Pretax Margin % is 5.33. AECI's value of 4.18% is 21.5% below this benchmark. Historically, AECI's own Pretax Margin % has ranged from 2.75 to 7.64 over the past decade. While the company's 10-year median is 5.92 vs. the industry median of 5.33, AECI 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 Chemicals company?
The median Pretax Margin % among Chemicals companies is 5.33, based on 1,580 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. AECI's current Pretax Margin % of 4.18% is 21.5% 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 AECI and its competitors. For the Chemicals industry, the median Pretax Margin % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AECI's current Pretax Margin % is 4.18%, which is 29% below median its own 10-year median of 5.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AECI stock overvalued right now?
Based on GuruFocus' analysis, AECI (JSE:AFE) is currently considered Significantly Overvalued. The stock's GF Value™ is R90.99, compared to a current price of R126.00 — trading 38.5% above its estimated fair value. The current Pretax Margin % is 4.18%, which is 29% below median its 10-year median of 5.92 and 21.5% below the Chemicals industry median of 5.33. AECI's overall GF Score™ is 62/100 with 6 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 AECI (JSE:AFE), the current Pretax Margin % is 4.18% 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 AECI (JSE:AFE) Overvalued in 2026?
Based on GuruFocus' analysis, AECI stock appears to be overvalued.
The current stock price of R126.00 is trading 38.5% above its estimated GF Value™ of R90.99.
GuruFocus considers AECI to be Significantly Overvalued.
Key valuation signals for JSE:AFE:
Pretax Margin %: 4.18% (29% below median its 10-year median of 5.92)
GF Value™: R90.99 vs. price of R126.00 (38.5% above fair value)
Industry Position: 21.5% below the Chemicals median (#900 of 1580)
No single metric tells the full story. See the JSE:AFE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AECI Ltd is a diversified group operating predominantly in the chemicals industry. The company performs its various business activities in the following reportable segments: AECI Mining, AECI Chemicals, AECI Managed Businesses, and AECI Property Services and Corporate. A majority of its revenue is generated from the AECI Mining segment, which provides a mine-to-mineral solution for the international mining sector. The offerings under this segment include commercial explosives, initiating systems, blasting services, and surfactants for explosives manufacture across the value chain to chemicals for ore beneficiation and tailings treatment. Geographically, the group generates a majority of its revenue from Africa, followed by Asia-Pacific, Europe, North America, and Latin America.
62GF Score
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