XPMEX:XP N 58 Pretax Margin % is 69.48% as of Mar. 2026, which is 24% above its 10-year median of 56.10. GuruFocus rates MEX:XP N with a GF Score™ of 58/100 and a GF Value™ of MXN547.58 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 774 Capital Markets companies, XP ranks better than 85.79% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. XP's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN4,631 Mil. XP's Revenue for the
three
months ended in Mar. 2026 was MXN6,665 Mil. Therefore, XP's pretax margin for the quarter that ended in Mar. 2026 was 69.48%.
The historical rank and industry rank for XP's Pretax Margin % or its related term are showing as below:
MEX:XP N'
s Pretax Margin % Range Over the Past 10 Years
Min: 31.19 Med: 56.1 Max: 68.39
Current: 67.01
MEX:XP N's Pretax Margin % is ranked better than 85.79% of 774
companies
in the Capital Markets industry
Industry Median: 20.32
vs MEX:XP N: 67.01
XP (MEX:XP N) 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.
XP Pretax Margin % Related Terms
XP Pretax Margin % Historical Data
* Premium members only.
The historical data trend for XP'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:XP N vs SNEX, FIGR, HLI: Pretax Margin % Comparison
For the Capital Markets subindustry, XP'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.
XP Pretax Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, XP's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where XP'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.
XP (MEX:XP N) has a Pretax Margin % of 69.48% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on XP and its competitors. This is 24% above median its historical median of 56.10. Over the past decade, XP's Pretax Margin % has ranged from 31.19 to 68.39. According to the industry distribution chart, XP ranks #110 out of 774 companies in the Capital Markets industry, placing it in the top 14.2%.
Is XP's Pretax Margin % too high?
XP's current Pretax Margin % of 69.48% is 24% above median its 10-year median of 56.10. Over the past 10 years, this metric has ranged from a low of 31.19 to a high of 68.39. The Capital Markets industry median Pretax Margin % is 20.32. XP's value of 69.48% is 241.9% above this industry median. Based on the distribution chart, XP ranks #110 out of 774 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, XP has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does XP's Pretax Margin % compare to SNEX and FIGR?
According to the Capital Markets industry distribution chart, XP ranks #110 out of 774 companies for Pretax Margin %. This places XP in the top 14% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 20.32. XP's value of 69.48% is 241.9% above this benchmark. Historically, XP's own Pretax Margin % has ranged from 31.19 to 68.39 over the past decade. While the company's 10-year median is 56.10 vs. the industry median of 20.32, XP 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 Capital Markets company?
The median Pretax Margin % among Capital Markets companies is 20.32, based on 774 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. XP's current Pretax Margin % of 69.48% is 241.9% 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 XP and its competitors. For the Capital Markets industry, the median Pretax Margin % is 20.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XP's current Pretax Margin % is 69.48%, which is 24% above median its own 10-year median of 56.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XP stock overvalued right now?
Based on GuruFocus' analysis, XP (MEX:XP N) is currently considered Possible Value Trap. The stock's GF Value™ is MXN547.58, compared to a current price of MXN315.00 — trading 42.5% below its estimated fair value. The current Pretax Margin % is 69.48%, which is 24% above median its 10-year median of 56.10 and 241.9% above the Capital Markets industry median of 20.32. XP's overall GF Score™ is 58/100 with 6 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 XP (MEX:XP N), the current Pretax Margin % is 69.48% 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 XP (MEX:XP N) Overvalued in 2026?
Based on GuruFocus' analysis, XP stock appears to be undervalued.
The current stock price of MXN315.00 is trading 42.5% below its estimated GF Value™ of MXN547.58.
GuruFocus considers XP to be Possible Value Trap.
Key valuation signals for MEX:XP N:
Pretax Margin %: 69.48% (24% above median its 10-year median of 56.10)
GF Value™: MXN547.58 vs. price of MXN315.00 (42.5% below fair value)
Industry Position: 241.9% above the Capital Markets median (#110 of 774)
No single metric tells the full story. See the MEX:XP N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XP Inc is a Cayman Island-based technology-driven financial services platform. It is a provider of low-fee financial products and services in Brazil. The company evaluates its business through a single segment such as monitoring operations, making decisions on fund allocation, and evaluating the performance. It generates revenue through the Brokerage commission. Geographically, the company derives maximum revenue from Brazil and also has its presence in other countries.
58GF Score
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