HSBC HoldingsMEX:HBCN 48 Pretax Margin % is 49.02% as of Mar. 2026, which is 62% above its 10-year median of 30.35. GuruFocus rates MEX:HBCN with a GF Score™ of 48/100 and a GF Value™ of MXN924.52 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,527 Banks companies, HSBC Holdings ranks better than 66.08% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. HSBC Holdings's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN169,075 Mil. HSBC Holdings's Revenue for the
three
months ended in Mar. 2026 was MXN344,875 Mil. Therefore, HSBC Holdings's pretax margin for the quarter that ended in Mar. 2026 was 49.02%.
The historical rank and industry rank for HSBC Holdings's Pretax Margin % or its related term are showing as below:
MEX:HBCN'
s Pretax Margin % Range Over the Past 10 Years
Min: 11.48 Med: 30.35 Max: 47.94
Current: 41.18
MEX:HBCN's Pretax Margin % is ranked better than 66.08% of 1527
companies
in the Banks industry
Industry Median: 34.88
vs MEX:HBCN: 41.18
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.
HSBC Holdings Pretax Margin % Related Terms
HSBC Holdings Pretax Margin % Historical Data
* Premium members only.
The historical data trend for HSBC Holdings'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.
MEX:HBCN vs JPM, BAC, WFC: Pretax Margin % Comparison
For the Banks - Diversified subindustry, HSBC Holdings'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.
HSBC Holdings Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, HSBC Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where HSBC Holdings'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.
HSBC Holdings (MEX:HBCN) has a Pretax Margin % of 49.02% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on HSBC Holdings and its competitors. This is 62% above median its historical median of 30.35. Over the past decade, HSBC Holdings' Pretax Margin % has ranged from 11.48 to 47.94. According to the industry distribution chart, HSBC Holdings ranks #518 out of 1527 companies in the Banks industry, placing it in the top 33.9%.
Is HSBC Holdings' Pretax Margin % too high?
HSBC Holdings' current Pretax Margin % of 49.02% is 62% above median its 10-year median of 30.35. Over the past 10 years, this metric has ranged from a low of 11.48 to a high of 47.94. The Banks industry median Pretax Margin % is 34.88. HSBC Holdings' value of 49.02% is 40.5% above this industry median. Based on the distribution chart, HSBC Holdings ranks #518 out of 1527 companies in the Banks industry, which is above the industry midpoint. Overall, HSBC Holdings has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HSBC Holdings' Pretax Margin % compare to JPM and BAC?
According to the Banks industry distribution chart, HSBC Holdings ranks #518 out of 1527 companies for Pretax Margin %. This puts HSBC Holdings in the upper half of its industry. The industry median Pretax Margin % is 34.88. HSBC Holdings' value of 49.02% is 40.5% above this benchmark. Historically, HSBC Holdings' own Pretax Margin % has ranged from 11.48 to 47.94 over the past decade. While the company's 10-year median is 30.35 vs. the industry median of 34.88, HSBC Holdings 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 Banks company?
The median Pretax Margin % among Banks companies is 34.88, based on 1,527 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. HSBC Holdings's current Pretax Margin % of 49.02% is 40.5% 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 HSBC Holdings and its competitors. For the Banks industry, the median Pretax Margin % is 34.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HSBC Holdings's current Pretax Margin % is 49.02%, which is 62% above median its own 10-year median of 30.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HSBC Holdings stock overvalued right now?
Based on GuruFocus' analysis, HSBC Holdings (MEX:HBCN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN924.52, compared to a current price of MXN1,610.00 — trading 74.1% above its estimated fair value. The current Pretax Margin % is 49.02%, which is 62% above median its 10-year median of 30.35 and 40.5% above the Banks industry median of 34.88. HSBC Holdings' overall GF Score™ is 48/100 with 5 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 HSBC Holdings (MEX:HBCN), the current Pretax Margin % is 49.02% as of Mar. 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 HSBC Holdings (MEX:HBCN) Overvalued in 2026?
Based on GuruFocus' analysis, HSBC Holdings stock appears to be overvalued.
The current stock price of MXN1,610.00 is trading 74.1% above its estimated GF Value™ of MXN924.52.
GuruFocus considers HSBC Holdings to be Significantly Overvalued.
Key valuation signals for MEX:HBCN:
Pretax Margin %: 49.02% (62% above median its 10-year median of 30.35)
GF Value™: MXN924.52 vs. price of MXN1,610.00 (74.1% above fair value)
Industry Position: 40.5% above the Banks median (#518 of 1527)
No single metric tells the full story. See the MEX:HBCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and over 40 million customers worldwide. It operates in more than 50 countries with over 200,000 full-time staff. Hong Kong and the United Kingdom are its two largest markets. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.
48GF Score
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