Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. ARM Cement's Pre-Tax Income for the
six
months ended in Dec. 2017 was KES-6,141 Mil. ARM Cement's Revenue for the
six
months ended in Dec. 2017 was KES3,350 Mil. Therefore, ARM Cement's pretax margin for the quarter that ended in Dec. 2017 was -183.33%.
The historical rank and industry rank for ARM Cement's Pretax Margin % or its related term are showing as below:
NAI:ARM's Pretax Margin % is not ranked *
in the Building Materials industry.
Industry Median: 5.99 * Ranked among companies with meaningful Pretax Margin % only.
ARM Cement (NAI:ARM) 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.
ARM Cement Pretax Margin % Related Terms
ARM Cement Pretax Margin % Historical Data
* Premium members only.
The historical data trend for ARM Cement'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.
For the Building Materials subindustry, ARM Cement'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.
ARM Cement Pretax Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, ARM Cement's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where ARM Cement'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.
ARM Cement (NAI:ARM) has a Pretax Margin % of -183.33% as of Dec. 2017. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on ARM Cement and its competitors.
Is ARM Cement's Pretax Margin % too high?
ARM Cement's current Pretax Margin % is -183.33%.
How does ARM Cement's Pretax Margin % compare to competitors?
ARM Cement's Pretax Margin % of -183.33% can be compared against companies in the Building Materials industry. The industry median Pretax Margin % is 5.99. 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 Building Materials company?
The median Pretax Margin % among Building Materials companies is 5.99, based on 404 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. 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 ARM Cement and its competitors. For the Building Materials industry, the median Pretax Margin % is 5.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Cement's current Pretax Margin % is -183.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARM Cement stock overvalued right now?
ARM Cement (NAI:ARM) has a current Pretax Margin % of -183.33%. The current Pretax Margin % is -183.33%. 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 ARM Cement (NAI:ARM), the current Pretax Margin % is -183.33% as of Dec. 2017. 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.
ARM Cement PLC is a cement manufacturing company based in Kenya. The principal activities of the company and its subsidiaries are the manufacturing and selling of cement. In addition, the company is engaged in the mining and processing of industrial minerals and chemicals, trading in other building products and the sale of fertilisers. The company is organised into two principal operating division - Cement and Lime segment and Other Products. The company offers tiling cement, composite cement, portland cement, and clinker. The company predominantly carries out its operations in Kenya, Tanzania, South Africa and Rwanda. The majority of its revenue is derived from Kenya.
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