SafaricomNAI:SCOM 100 Pretax Margin % is 32.76% as of Mar. 2026, which is 3% below its 10-year median of 33.76. GuruFocus rates NAI:SCOM with a GF Score™ of 100/100 and a GF Value™ of KES21.85 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 365 Telecommunication Services companies, Safaricom ranks better than 90.41% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Safaricom's Pre-Tax Income for the
six
months ended in Mar. 2026 was KES71,578 Mil. Safaricom's Revenue for the
six
months ended in Mar. 2026 was KES218,524 Mil. Therefore, Safaricom's pretax margin for the quarter that ended in Mar. 2026 was 32.76%.
The historical rank and industry rank for Safaricom's Pretax Margin % or its related term are showing as below:
NAI:SCOM'
s Pretax Margin % Range Over the Past 10 Years
Min: 24.25 Med: 33.76 Max: 40.33
Current: 30.12
NAI:SCOM's Pretax Margin % is ranked better than 90.41% of 365
companies
in the Telecommunication Services industry
Industry Median: 7.63
vs NAI:SCOM: 30.12
Safaricom (NAI:SCOM) 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.
Safaricom Pretax Margin % Related Terms
Safaricom Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Safaricom'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.
NAI:SCOM vs TMUS, VZ, T: Pretax Margin % Comparison
For the Telecom Services subindustry, Safaricom'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.
Safaricom Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Safaricom's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Safaricom'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.
Safaricom (NAI:SCOM) has a Pretax Margin % of 32.76% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Safaricom and its competitors. This is near median its historical median of 33.76. Over the past decade, Safaricom's Pretax Margin % has ranged from 24.25 to 40.33. According to the industry distribution chart, Safaricom ranks #35 out of 365 companies in the Telecommunication Services industry, placing it in the top 9.6%.
Is Safaricom's Pretax Margin % too high?
Safaricom's current Pretax Margin % of 32.76% is near median its 10-year median of 33.76. Over the past 10 years, this metric has ranged from a low of 24.25 to a high of 40.33. The Telecommunication Services industry median Pretax Margin % is 7.63. Safaricom's value of 32.76% is 329.4% above this industry median. Based on the distribution chart, Safaricom ranks #35 out of 365 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Safaricom has a GF Score™ of 100/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Safaricom's Pretax Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Safaricom ranks #35 out of 365 companies for Pretax Margin %. This places Safaricom in the top 10% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 7.63. Safaricom's value of 32.76% is 329.4% above this benchmark. Historically, Safaricom's own Pretax Margin % has ranged from 24.25 to 40.33 over the past decade. While the company's 10-year median is 33.76 vs. the industry median of 7.63, Safaricom 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 Telecommunication Services company?
The median Pretax Margin % among Telecommunication Services companies is 7.63, based on 365 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. Safaricom's current Pretax Margin % of 32.76% is 329.4% 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 Safaricom and its competitors. For the Telecommunication Services industry, the median Pretax Margin % is 7.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safaricom's current Pretax Margin % is 32.76%, which is near median its own 10-year median of 33.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safaricom stock overvalued right now?
Based on GuruFocus' analysis, Safaricom (NAI:SCOM) is currently considered Significantly Overvalued. The stock's GF Value™ is KES21.85, compared to a current price of KES34.05 — trading 55.8% above its estimated fair value. The current Pretax Margin % is 32.76%, which is near median its 10-year median of 33.76 and 329.4% above the Telecommunication Services industry median of 7.63. Safaricom's overall GF Score™ is 100/100 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 Safaricom (NAI:SCOM), the current Pretax Margin % is 32.76% 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 Safaricom (NAI:SCOM) Overvalued in 2026?
Based on GuruFocus' analysis, Safaricom stock appears to be overvalued.
The current stock price of KES34.05 is trading 55.8% above its estimated GF Value™ of KES21.85.
GuruFocus considers Safaricom to be Significantly Overvalued.
Key valuation signals for NAI:SCOM:
Pretax Margin %: 32.76% (near median its 10-year median of 33.76)
GF Value™: KES21.85 vs. price of KES34.05 (55.8% above fair value)
Industry Position: 329.4% above the Telecommunication Services median (#35 of 365)
No single metric tells the full story. See the NAI:SCOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.
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