Cegid Group (LTS:0RIY) Pretax Margin %: 16.84% (As of Dec. 2016) — 50% Above Median


What is Cegid Group Pretax Margin %?

Cegid Group LTS:0RIY Pretax Margin % is 16.84% as of Dec. 2016, which is 50% above its 10-year median of 11.22. The stock has 4 warning signs investors should review.

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Cegid Group's Pre-Tax Income for the six months ended in Dec. 2016 was €26.46 Mil. Cegid Group's Revenue for the six months ended in Dec. 2016 was €157.10 Mil. Therefore, Cegid Group's pretax margin for the quarter that ended in Dec. 2016 was 16.84%.

The historical rank and industry rank for Cegid Group's Pretax Margin % or its related term are showing as below:

LTS:0RIY' s Pretax Margin % Range Over the Past 10 Years
Min: 8.01   Med: 11.22   Max: 13.45
Current: 13.45


LTS:0RIY's Pretax Margin % is not ranked
in the Software industry.
Industry Median: 3.53 vs LTS:0RIY: 13.45

Cegid Group  (LTS:0RIY) 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.


Cegid Group Pretax Margin % Related Terms


Cegid Group Pretax Margin % Historical Data

* Premium members only.

The historical data trend for Cegid Group'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.

Cegid Group Pretax Margin % Chart

Cegid Group Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Pretax Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.01 11.06 13.28 12.78 13.45

Cegid Group Semi-Annual Data
Dec05 Dec06 Dec07 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
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 15.23 11.06 14.33 9.90 16.84

LTS:0RIY vs TYPE, MTLS, TIVO: Pretax Margin % Comparison

For the Software - Application subindustry, Cegid Group'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.


Cegid Group Pretax Margin % vs Software Industry

For the Software industry and Technology sector, Cegid Group's Pretax Margin % distribution charts can be found below:

* The bar in red indicates where Cegid Group's Pretax Margin % falls into.



Cegid Group 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.

Cegid Group's Pretax Margin for the fiscal year that ended in Dec. 2016 is calculated as

Pretax Margin=Pre-Tax Income (A: Dec. 2016 )/Revenue (A: Dec. 2016 )
=41.361/307.592
=13.45 %

Cegid Group's Pretax Margin for the quarter that ended in Dec. 2016 is calculated as

Pretax Margin=Pre-Tax Income (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )
=26.459/157.102
=16.84 %

* 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 16.84% mean?
Cegid Group (LTS:0RIY) has a Pretax Margin % of 16.84% as of Dec. 2016. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cegid Group and its competitors. This is 50% above median its historical median of 11.22. Over the past decade, Cegid Group's Pretax Margin % has ranged from 8.01 to 13.45.
Is Cegid Group's Pretax Margin % too high?
Cegid Group's current Pretax Margin % of 16.84% is 50% above median its 10-year median of 11.22. Over the past 10 years, this metric has ranged from a low of 8.01 to a high of 13.45. The Software industry median Pretax Margin % is 3.53. Cegid Group's value of 16.84% is 377.1% above this industry median.
How does Cegid Group's Pretax Margin % compare to TYPE and MTLS?
Cegid Group's Pretax Margin % of 16.84% can be compared against companies in the Software industry. The industry median Pretax Margin % is 3.53. Cegid Group's value of 16.84% is 377.1% above this benchmark. Historically, Cegid Group's own Pretax Margin % has ranged from 8.01 to 13.45 over the past decade. While the company's 10-year median is 11.22 vs. the industry median of 3.53, Cegid Group 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 Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,825 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. Cegid Group's current Pretax Margin % of 16.84% is 377.1% 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 Cegid Group and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cegid Group's current Pretax Margin % is 16.84%, which is 50% above median its own 10-year median of 11.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cegid Group stock overvalued right now?
Cegid Group (LTS:0RIY) has a current Pretax Margin % of 16.84%. The current Pretax Margin % is 16.84%, which is 50% above median its 10-year median of 11.22 and 377.1% above the Software industry median of 3.53. 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 Cegid Group (LTS:0RIY), the current Pretax Margin % is 16.84% as of Dec. 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.

Cegid Group Business Description

Cegid Group SA is engaged in the development, hosting, sell and distribution of business management software and related goods and services. It serves the finance, taxation, human resources, public, retail, manufacturing, services, trade, and accounting profession sectors, as well as startups and small businesses. Geographically business activity of the group is based in France.