Smart (J) (Contractors)LSE:SMJ +2.22%62 Pretax Margin % is 0.72% as of Jan. 2026, which is 97% below its 10-year median of 25.55. GuruFocus rates LSE:SMJ with a GF Score™ of 62/100 and a GF Value™ of £2.18 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,757 Construction companies, Smart (J) (Contractors) ranks better than 93% 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.
Smart (J) (Contractors) Pretax Margin % Related Terms
Smart (J) (Contractors) 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:SMJ vs PWR, FIX, EME: Pretax Margin % Comparison
For the Engineering & Construction subindustry, Smart (J) (Contractors)'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.
Smart (J) (Contractors) Pretax Margin % vs Construction Industry
For the Construction industry and Industrials sector, Smart (J) (Contractors)'s Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Smart (J) (Contractors)'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.
Smart (J) (Contractors) (LSE:SMJ) has a Pretax Margin % of 0.72% as of Jan. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Smart (J) (Contractors) and its competitors. This is 97% below median its historical median of 25.55. Over the past decade, Smart (J) (Contractors)'s Pretax Margin % has ranged from 0.81 to 120.78. According to the industry distribution chart, Smart (J) (Contractors) ranks #123 out of 1757 companies in the Construction industry, placing it in the top 7%.
Is Smart (J) (Contractors)'s Pretax Margin % too high?
Smart (J) (Contractors)'s current Pretax Margin % of 0.72% is 97% below median its 10-year median of 25.55. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 120.78. The Construction industry median Pretax Margin % is 5.50. Smart (J) (Contractors)'s value of 0.72% is 86.9% below this industry median. Based on the distribution chart, Smart (J) (Contractors) ranks #123 out of 1757 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Smart (J) (Contractors) has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Smart (J) (Contractors)'s Pretax Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Smart (J) (Contractors) ranks #123 out of 1757 companies for Pretax Margin %. This places Smart (J) (Contractors) in the top 7% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.50. Smart (J) (Contractors)'s value of 0.72% is 86.9% below this benchmark. Historically, Smart (J) (Contractors)'s own Pretax Margin % has ranged from 0.81 to 120.78 over the past decade. While the company's 10-year median is 25.55 vs. the industry median of 5.50, Smart (J) (Contractors) 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 Construction company?
The median Pretax Margin % among Construction companies is 5.50, based on 1,757 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. Smart (J) (Contractors)'s current Pretax Margin % of 0.72% is 86.9% 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 Smart (J) (Contractors) and its competitors. For the Construction industry, the median Pretax Margin % is 5.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart (J) (Contractors)'s current Pretax Margin % is 0.72%, which is 97% below median its own 10-year median of 25.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart (J) (Contractors) stock overvalued right now?
Based on GuruFocus' analysis, Smart (J) (Contractors) (LSE:SMJ) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.18, compared to a current price of £1.15 — trading 47.2% below its estimated fair value. The current Pretax Margin % is 0.72%, which is 97% below median its 10-year median of 25.55 and 86.9% below the Construction industry median of 5.50. Smart (J) (Contractors)'s overall GF Score™ is 62/100 with 1 warning sign 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 Smart (J) (Contractors) (LSE:SMJ), the current Pretax Margin % is 0.72% 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 Smart (J) (Contractors) (LSE:SMJ) Overvalued in 2026?
Based on GuruFocus' analysis, Smart (J) (Contractors) stock appears to be undervalued.
The current stock price of £1.15 is trading 47.2% below its estimated GF Value™ of £2.18.
GuruFocus considers Smart (J) (Contractors) to be Significantly Undervalued.
Key valuation signals for LSE:SMJ:
Pretax Margin %: 0.72% (97% below median its 10-year median of 25.55)
GF Value™: £2.18 vs. price of £1.15 (47.2% below fair value)
Industry Position: 86.9% below the Construction median (#123 of 1757)
No single metric tells the full story. See the LSE:SMJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart (J) & Co (Contractors) PLC is a construction company. Its activities include building and civil engineering contracting, a residential development for sale, and the development of industrial and commercial property for lease and sale. The main construction activity undertaken by the company is that of social housing for several housing associations and registered social landlords predominately in the Edinburgh area. It has a portfolio of self-financed industrial and commercial properties that are owned and managed by its subsidiary company. The investment properties are located throughout the central belt of Scotland and in the Edinburgh area.
62GF Score
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