M & G Highome Investment Trust (LSE:MGHC) Pretax Margin %: 4.70% (As of Nov. 2016) — 95% Below Median


What is M & G Highome Investment Trust Pretax Margin %?

M & G Highome Investment Trust LSE:MGHC Pretax Margin % is 4.70% as of Nov. 2016, which is 95% below its 10-year median of 98.13. The stock has 3 warning signs investors should review.

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. M & G Highome Investment Trust's Pre-Tax Income for the six months ended in Nov. 2016 was £0.96 Mil. M & G Highome Investment Trust's Revenue for the six months ended in Nov. 2016 was £20.43 Mil. Therefore, M & G Highome Investment Trust's pretax margin for the quarter that ended in Nov. 2016 was 4.70%.

The historical rank and industry rank for M & G Highome Investment Trust's Pretax Margin % or its related term are showing as below:

LSE:MGHC' s Pretax Margin % Range Over the Past 10 Years
Min: -114.09   Med: 98.13   Max: 1805.99
Current: -114.09


LSE:MGHC's Pretax Margin % is not ranked
in the Asset Management industry.
Industry Median: 89.52 vs LSE:MGHC: -114.09

M & G Highome Investment Trust  (LSE:MGHC) 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.


M & G Highome Investment Trust Pretax Margin % Related Terms


M & G Highome Investment Trust Pretax Margin % Historical Data

* Premium members only.

The historical data trend for M & G Highome Investment Trust'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.

M & G Highome Investment Trust Pretax Margin % Chart

M & G Highome Investment Trust Annual Data
Trend May07 May08 May09 May10 May11 May12 May13 May14 May15 May16
Pretax Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,805.99 74.85 22.89 -14.56 461.49

M & G Highome Investment Trust Semi-Annual Data
May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14 Nov14 May15 Nov15 May16 Nov16
Pretax Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -414.69 29.72 240.24 -1,774.15 4.70

LSE:MGHC vs BKCC, TPVG: Pretax Margin % Comparison

For the Asset Management subindustry, M & G Highome Investment Trust'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.


M & G Highome Investment Trust Pretax Margin % vs Asset Management Industry

For the Asset Management industry and Financial Services sector, M & G Highome Investment Trust's Pretax Margin % distribution charts can be found below:

* The bar in red indicates where M & G Highome Investment Trust's Pretax Margin % falls into.



M & G Highome Investment Trust Pretax Margin % Calculation

Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.

M & G Highome Investment Trust's Pretax Margin for the fiscal year that ended in May. 2016 is calculated as

Pretax Margin=Pre-Tax Income (A: May. 2016 )/Revenue (A: May. 2016 )
=-61.429/-13.311
=461.49 %

M & G Highome Investment Trust's Pretax Margin for the quarter that ended in Nov. 2016 is calculated as

Pretax Margin=Pre-Tax Income (Q: Nov. 2016 )/Revenue (Q: Nov. 2016 )
=0.961/20.431
=4.70 %

* 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.

Frequently Asked Questions Learn more about Pretax Margin % →
What does a Pretax Margin % of 4.70% mean?
M & G Highome Investment Trust (LSE:MGHC) has a Pretax Margin % of 4.70% as of Nov. 2016. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on M & G Highome Investment Trust and its competitors. This is 95% below median its historical median of 98.13.
Is M & G Highome Investment Trust's Pretax Margin % too high?
M & G Highome Investment Trust's current Pretax Margin % of 4.70% is 95% below median its 10-year median of 98.13. The Asset Management industry median Pretax Margin % is 89.52. M & G Highome Investment Trust's value of 4.70% is 94.7% below this industry median.
How does M & G Highome Investment Trust's Pretax Margin % compare to BKCC and TPVG?
M & G Highome Investment Trust's Pretax Margin % of 4.70% can be compared against companies in the Asset Management industry. The industry median Pretax Margin % is 89.52. M & G Highome Investment Trust's value of 4.70% is 94.7% below this benchmark. While the company's 10-year median is 98.13 vs. the industry median of 89.52, M & G Highome Investment Trust 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 an Asset Management company?
The median Pretax Margin % among Asset Management companies is 89.52, based on 1,569 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. M & G Highome Investment Trust's current Pretax Margin % of 4.70% is 94.7% 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 M & G Highome Investment Trust and its competitors. For the Asset Management industry, the median Pretax Margin % is 89.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. M & G Highome Investment Trust's current Pretax Margin % is 4.70%, which is 95% below median its own 10-year median of 98.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is M & G Highome Investment Trust stock overvalued right now?
M & G Highome Investment Trust (LSE:MGHC) has a current Pretax Margin % of 4.70%. The current Pretax Margin % is 4.70%, which is 95% below median its 10-year median of 98.13 and 94.7% below the Asset Management industry median of 89.52. 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 M & G Highome Investment Trust (LSE:MGHC), the current Pretax Margin % is 4.70% as of Nov. 2016. 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.

M & G Highome Investment Trust Business Description

M & G High Income Investment Trust PLC was incorporated in United Kingdom on December 23, 1996. It is a split capital investment trust company with three classes of share: Zero Dividend Preference Shares, Income Shares and Capital Shares. The Company's investment objective is to achieve an above average and increasing income over the 20 year life of the Company and seeking to achieve capital growth.