Mercantile Investment Trust (The)LSE:MRC +0.73%51 Pretax Margin % is 99.14% as of Jan. 2026, which is 0% below its 10-year median of 99.56. GuruFocus rates LSE:MRC with a GF Score™ of 51/100 and a GF Value™ of £7.21 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,570 Asset Management companies, Mercantile Investment Trust (The) ranks better than 77.01% 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.
Mercantile Investment Trust (The) Pretax Margin % Related Terms
Mercantile Investment Trust (The) Pretax Margin % Historical Data
* 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:MRC vs BLK, BX, KKR: Pretax Margin % Comparison
For the Asset Management subindustry, Mercantile Investment Trust (The)'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.
Mercantile Investment Trust (The) Pretax Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercantile Investment Trust (The)'s Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Mercantile Investment Trust (The)'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.
Mercantile Investment Trust (The) (LSE:MRC) has a Pretax Margin % of 99.14% as of Jan. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Mercantile Investment Trust (The) and its competitors. This is near median its historical median of 99.56. Over the past decade, Mercantile Investment Trust (The)'s Pretax Margin % has ranged from 97.85 to 101.07. According to the industry distribution chart, Mercantile Investment Trust (The) ranks #361 out of 1570 companies in the Asset Management industry, placing it in the top 23%.
Is Mercantile Investment Trust (The)'s Pretax Margin % too high?
Mercantile Investment Trust (The)'s current Pretax Margin % of 99.14% is near median its 10-year median of 99.56. Over the past 10 years, this metric has ranged from a low of 97.85 to a high of 101.07. The Asset Management industry median Pretax Margin % is 89.62. Mercantile Investment Trust (The)'s value of 99.14% is 10.6% above this industry median. Based on the distribution chart, Mercantile Investment Trust (The) ranks #361 out of 1570 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Mercantile Investment Trust (The) has a GF Score™ of 51/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercantile Investment Trust (The)'s Pretax Margin % compare to BLK and BX?
According to the Asset Management industry distribution chart, Mercantile Investment Trust (The) ranks #361 out of 1570 companies for Pretax Margin %. This places Mercantile Investment Trust (The) in the top 23% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 89.62. Mercantile Investment Trust (The)'s value of 99.14% is 10.6% above this benchmark. Historically, Mercantile Investment Trust (The)'s own Pretax Margin % has ranged from 97.85 to 101.07 over the past decade. While the company's 10-year median is 99.56 vs. the industry median of 89.62, Mercantile Investment Trust (The) 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 an Asset Management company?
The median Pretax Margin % among Asset Management companies is 89.62, based on 1,570 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. Mercantile Investment Trust (The)'s current Pretax Margin % of 99.14% is 10.6% 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 Mercantile Investment Trust (The) and its competitors. For the Asset Management industry, the median Pretax Margin % is 89.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercantile Investment Trust (The)'s current Pretax Margin % is 99.14%, which is near median its own 10-year median of 99.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercantile Investment Trust (The) stock overvalued right now?
Based on GuruFocus' analysis, Mercantile Investment Trust (The) (LSE:MRC) is currently considered Significantly Undervalued. The stock's GF Value™ is £7.21, compared to a current price of £2.77 — trading 61.7% below its estimated fair value. The current Pretax Margin % is 99.14%, which is near median its 10-year median of 99.56 and 10.6% above the Asset Management industry median of 89.62. Mercantile Investment Trust (The)'s overall GF Score™ is 51/100 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 Mercantile Investment Trust (The) (LSE:MRC), the current Pretax Margin % is 99.14% as of Jan. 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 Mercantile Investment Trust (The) (LSE:MRC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercantile Investment Trust (The) stock appears to be undervalued.
The current stock price of £2.77 is trading 61.7% below its estimated GF Value™ of £7.21.
GuruFocus considers Mercantile Investment Trust (The) to be Significantly Undervalued.
Key valuation signals for LSE:MRC:
Pretax Margin %: 99.14% (near median its 10-year median of 99.56)
GF Value™: £7.21 vs. price of £2.77 (61.7% below fair value)
Industry Position: 10.6% above the Asset Management median (#361 of 1570)
No single metric tells the full story. See the LSE:MRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercantile Investment Trust (The) Business Description
Mercantile Investment Trust (The) PLC is an investment trust managed by JP Morgan Funds Limited. It aims to achieve capital growth through investing in a diversified portfolio of UK medium and smaller companies. The trust's investment portfolio consists of securities of companies from various sectors such as Consumer Services, Financials, Industrial, Technology, Health Care, Basic Materials, Telecommunications, Utilities, Consumer Goods, Real Estate, and Oil & Gas.
51GF Score
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