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Franchise BrandsLSE:FRAN +1.72%91 Pretax Margin % is 11.05% as of Jun. 2026, which is 42% above its 10-year median of 7.77. GuruFocus rates LSE:FRAN with a GF Score™ of 91/100 and a GF Value™ of £1.78 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,070 Business Services companies, Franchise Brands ranks better than 63.46% 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.
Franchise Brands Pretax Margin % Related Terms
Franchise Brands Pretax Margin % Historical Data
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The historical data trend for Franchise Brands'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.
LSE:FRAN vs CTAS, CPRT, GPN: Pretax Margin % Comparison
For the Specialty Business Services subindustry, Franchise Brands'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.
Franchise Brands Pretax Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Franchise Brands's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Franchise Brands'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.
Franchise Brands (LSE:FRAN) has a Pretax Margin % of 11.05% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Franchise Brands and its competitors. This is 42% above median its historical median of 7.77. According to the industry distribution chart, Franchise Brands ranks #391 out of 1070 companies in the Business Services industry, placing it in the top 36.5%.
Is Franchise Brands' Pretax Margin % too high?
Franchise Brands' current Pretax Margin % of 11.05% is 42% above median its 10-year median of 7.77. The Business Services industry median Pretax Margin % is 5.30. Franchise Brands' value of 11.05% is 108.7% above this industry median. Based on the distribution chart, Franchise Brands ranks #391 out of 1070 companies in the Business Services industry, which is above the industry midpoint. Overall, Franchise Brands has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Franchise Brands' Pretax Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Franchise Brands ranks #391 out of 1070 companies for Pretax Margin %. This puts Franchise Brands in the upper half of its industry. The industry median Pretax Margin % is 5.30. Franchise Brands' value of 11.05% is 108.7% above this benchmark. While the company's 10-year median is 7.77 vs. the industry median of 5.30, Franchise Brands 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 Business Services company?
The median Pretax Margin % among Business Services companies is 5.30, based on 1,070 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. Franchise Brands's current Pretax Margin % of 11.05% is 108.7% 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 Franchise Brands and its competitors. For the Business Services industry, the median Pretax Margin % is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Franchise Brands's current Pretax Margin % is 11.05%, which is 42% above median its own 10-year median of 7.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franchise Brands stock overvalued right now?
Based on GuruFocus' analysis, Franchise Brands (LSE:FRAN) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.78, compared to a current price of £1.48 — trading 16.9% below its estimated fair value. The current Pretax Margin % is 11.05%, which is 42% above median its 10-year median of 7.77 and 108.7% above the Business Services industry median of 5.30. Franchise Brands' overall GF Score™ is 91/100 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 Franchise Brands (LSE:FRAN), the current Pretax Margin % is 11.05% 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 Franchise Brands (LSE:FRAN) Overvalued in 2026?
Based on GuruFocus' analysis, Franchise Brands stock appears to be undervalued.
The current stock price of £1.48 is trading 16.9% below its estimated GF Value™ of £1.78.
GuruFocus considers Franchise Brands to be Modestly Undervalued.
Key valuation signals for LSE:FRAN:
Pretax Margin %: 11.05% (42% above median its 10-year median of 7.77)
GF Value™: £1.78 vs. price of £1.48 (16.9% below fair value)
Industry Position: 108.7% above the Business Services median (#391 of 1070)
No single metric tells the full story. See the LSE:FRAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Franchise Brands PLC is a holding company engaged in franchising and related activities. Its brands associated with the company are Metro Rod, Chips Away, Barking Mad, Oven Clean, Metro Plumb, Willow Pumps, and Filta. Its operating segments are Pirtek Europe, Water & Waste Services, Filta International, B2C, Azura, and Other operations, and the majority of the revenue comes from the Pirtek Europe segment.
91GF Score
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