NestleMEX:NESNN 73 Pretax Margin % is 10.30% as of Dec. 2025, which is 25% below its 10-year median of 13.78. GuruFocus rates MEX:NESNN with a GF Score™ of 73/100 and a GF Value™ of MXN1,950.54. The stock has 7 warning signs investors should review. Among 1,952 Consumer Packaged Goods companies, Nestle ranks better than 77.25% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Nestle's Pre-Tax Income for the
six
months ended in Dec. 2025 was MXN105,879 Mil. Nestle's Revenue for the
six
months ended in Dec. 2025 was MXN1,027,493 Mil. Therefore, Nestle's pretax margin for the quarter that ended in Dec. 2025 was 10.30%.
The historical rank and industry rank for Nestle's Pretax Margin % or its related term are showing as below:
MEX:NESNN'
s Pretax Margin % Range Over the Past 10 Years
Min: 10.52 Med: 13.78 Max: 16.44
Current: 11.96
MEX:NESNN's Pretax Margin % is ranked better than 77.25% of 1952
companies
in the Consumer Packaged Goods industry
Industry Median: 4.665
vs MEX:NESNN: 11.96
Nestle (MEX:NESNN) 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.
Nestle Pretax Margin % Related Terms
Nestle Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Nestle'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:NESNN vs KHC, GIS, JBS: Pretax Margin % Comparison
For the Packaged Foods subindustry, Nestle'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.
Nestle Pretax Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Nestle'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.
Nestle (MEX:NESNN) has a Pretax Margin % of 10.30% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Nestle and its competitors. This is 25% below median its historical median of 13.78. Over the past decade, Nestle's Pretax Margin % has ranged from 10.52 to 16.44. According to the industry distribution chart, Nestle ranks #444 out of 1952 companies in the Consumer Packaged Goods industry, placing it in the top 22.7%.
Is Nestle's Pretax Margin % too high?
Nestle's current Pretax Margin % of 10.30% is 25% below median its 10-year median of 13.78. Over the past 10 years, this metric has ranged from a low of 10.52 to a high of 16.44. The Consumer Packaged Goods industry median Pretax Margin % is 4.67. Nestle's value of 10.30% is 120.8% above this industry median. Based on the distribution chart, Nestle ranks #444 out of 1952 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Nestle's Pretax Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle ranks #444 out of 1952 companies for Pretax Margin %. This places Nestle in the top 23% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 4.67. Nestle's value of 10.30% is 120.8% above this benchmark. Historically, Nestle's own Pretax Margin % has ranged from 10.52 to 16.44 over the past decade. While the company's 10-year median is 13.78 vs. the industry median of 4.67, Nestle 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 Consumer Packaged Goods company?
The median Pretax Margin % among Consumer Packaged Goods companies is 4.67, based on 1,952 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. Nestle's current Pretax Margin % of 10.30% is 120.8% 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 Nestle and its competitors. For the Consumer Packaged Goods industry, the median Pretax Margin % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle's current Pretax Margin % is 10.30%, which is 25% below median its own 10-year median of 13.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle stock overvalued right now?
Nestle (MEX:NESNN) has a current Pretax Margin % of 10.30%. The stock's GF Value™ is MXN1,950.54, compared to a current price of MXN1,734.16 — trading 11.1% below its estimated fair value. The current Pretax Margin % is 10.30%, which is 25% below median its 10-year median of 13.78 and 120.8% above the Consumer Packaged Goods industry median of 4.67. Nestle's overall GF Score™ is 73/100 with 7 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 Nestle (MEX:NESNN), the current Pretax Margin % is 10.30% as of Dec. 2025. 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 Nestle (MEX:NESNN) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle stock appears to be undervalued.
The current stock price of MXN1,734.16 is trading 11.1% below its estimated GF Value™ of MXN1,950.54.
Key valuation signals for MEX:NESNN:
Pretax Margin %: 10.30% (25% below median its 10-year median of 13.78)
GF Value™: MXN1,950.54 vs. price of MXN1,734.16 (11.1% below fair value)
Industry Position: 120.8% above the Consumer Packaged Goods median (#444 of 1952)
No single metric tells the full story. See the MEX:NESNN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating roughly CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nescafe, Maggi, Nespresso, and Purina. The company employs 270,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans 185 countries.
73GF Score
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