SoftcatLSE:SCT +2.37%88 Pretax Margin % is 10.53% as of Jan. 2026, which is 1% above its 10-year median of 10.46. GuruFocus rates LSE:SCT with a GF Score™ of 88/100 and a GF Value™ of £26.05 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,476 Hardware companies, Softcat ranks better than 76.41% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Softcat's Pre-Tax Income for the
six
months ended in Jan. 2026 was £88 Mil. Softcat's Revenue for the
six
months ended in Jan. 2026 was £838 Mil. Therefore, Softcat's pretax margin for the quarter that ended in Jan. 2026 was 10.53%.
The historical rank and industry rank for Softcat's Pretax Margin % or its related term are showing as below:
LSE:SCT'
s Pretax Margin % Range Over the Past 10 Years
Min: 6.04 Med: 10.46 Max: 16.56
Current: 10.84
LSE:SCT's Pretax Margin % is ranked better than 76.41% of 2476
companies
in the Hardware industry
Industry Median: 3.58
vs LSE:SCT: 10.84
Softcat (LSE:SCT) 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.
Softcat Pretax Margin % Related Terms
Softcat Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Softcat'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:SCT vs SNX, ARW, AVT: Pretax Margin % Comparison
For the Electronics & Computer Distribution subindustry, Softcat'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.
Softcat Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Softcat'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.
Softcat (LSE:SCT) has a Pretax Margin % of 10.53% as of Jan. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Softcat and its competitors. This is near median its historical median of 10.46. Over the past decade, Softcat's Pretax Margin % has ranged from 6.04 to 16.56. According to the industry distribution chart, Softcat ranks #584 out of 2476 companies in the Hardware industry, placing it in the top 23.6%.
Is Softcat's Pretax Margin % too high?
Softcat's current Pretax Margin % of 10.53% is near median its 10-year median of 10.46. Over the past 10 years, this metric has ranged from a low of 6.04 to a high of 16.56. The Hardware industry median Pretax Margin % is 3.58. Softcat's value of 10.53% is 194.1% above this industry median. Based on the distribution chart, Softcat ranks #584 out of 2476 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Softcat has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softcat's Pretax Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Softcat ranks #584 out of 2476 companies for Pretax Margin %. This places Softcat in the top 24% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.58. Softcat's value of 10.53% is 194.1% above this benchmark. Historically, Softcat's own Pretax Margin % has ranged from 6.04 to 16.56 over the past decade. While the company's 10-year median is 10.46 vs. the industry median of 3.58, Softcat 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 Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,476 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. Softcat's current Pretax Margin % of 10.53% is 194.1% 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 Softcat and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current Pretax Margin % is 10.53%, which is near median its own 10-year median of 10.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softcat stock overvalued right now?
Based on GuruFocus' analysis, Softcat (LSE:SCT) is currently considered Modestly Undervalued. The stock's GF Value™ is £26.05, compared to a current price of £18.56 — trading 28.8% below its estimated fair value. The current Pretax Margin % is 10.53%, which is near median its 10-year median of 10.46 and 194.1% above the Hardware industry median of 3.58. Softcat's overall GF Score™ is 88/100 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 Softcat (LSE:SCT), the current Pretax Margin % is 10.53% 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 Softcat (LSE:SCT) Overvalued in 2026?
Based on GuruFocus' analysis, Softcat stock appears to be undervalued.
The current stock price of £18.56 is trading 28.8% below its estimated GF Value™ of £26.05.
GuruFocus considers Softcat to be Modestly Undervalued.
Key valuation signals for LSE:SCT:
Pretax Margin %: 10.53% (near median its 10-year median of 10.46)
GF Value™: £26.05 vs. price of £18.56 (28.8% below fair value)
Industry Position: 194.1% above the Hardware median (#584 of 2476)
No single metric tells the full story. See the LSE:SCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softcat PLC is an information technology infrastructure and service provider offering software licensing, workplace technology, networking and security, and cloud and data center solutions to corporates, public sector organizations, and small to medium-sized businesses, with the latter being the main business provider. It earns revenue from software, hardware, and services, including its own services, with the majority derived from software products. Its solutions include Workspace, Cyber Security, Networking and Connectivity, Data, Automation and AI, and Hybrid Cloud Solutions. The company serves Small to Medium Businesses, Enterprise, Multinational Services, and the Public Sector including healthcare, education, government, defence, police, and emergency services.
88GF Score
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