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TextMagic ASOTSE:MAGIC 58 Pretax Margin % is -22.12% as of Dec. 2025. GuruFocus rates OTSE:MAGIC with a GF Score™ of 58/100 and a GF Value™ of €3.78 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,826 Software companies, TextMagic AS ranks worse than 72.54% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. TextMagic AS's Pre-Tax Income for the
six
months ended in Dec. 2025 was €-1.49 Mil. TextMagic AS's Revenue for the
six
months ended in Dec. 2025 was €6.75 Mil. Therefore, TextMagic AS's pretax margin for the quarter that ended in Dec. 2025 was -22.12%.
The historical rank and industry rank for TextMagic AS's Pretax Margin % or its related term are showing as below:
OTSE:MAGIC'
s Pretax Margin % Range Over the Past 10 Years
Min: -11.64 Med: 16.17 Max: 18.34
Current: -11.38
OTSE:MAGIC's Pretax Margin % is ranked worse than 72.54% of 2826
companies
in the Software industry
Industry Median: 3.59
vs OTSE:MAGIC: -11.38
TextMagic AS (OTSE:MAGIC) 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.
TextMagic AS Pretax Margin % Related Terms
TextMagic AS Pretax Margin % Historical Data
* Premium members only.
The historical data trend for TextMagic AS'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.
OTSE:MAGIC vs UBER, SHOP, CRM: Pretax Margin % Comparison
For the Software - Application subindustry, TextMagic AS'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.
TextMagic AS Pretax Margin % vs Software Industry
For the Software industry and Technology sector, TextMagic AS's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where TextMagic AS'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.
TextMagic AS (OTSE:MAGIC) has a Pretax Margin % of -22.12% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on TextMagic AS and its competitors. According to the industry distribution chart, TextMagic AS ranks #2050 out of 2826 companies in the Software industry, placing it in the top 72.5%.
Is TextMagic AS's Pretax Margin % too high?
TextMagic AS's current Pretax Margin % is -22.12%. Based on the distribution chart, TextMagic AS ranks #2050 out of 2826 companies in the Software industry, which is below the industry midpoint. Overall, TextMagic AS 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 TextMagic AS's Pretax Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, TextMagic AS ranks #2050 out of 2826 companies for Pretax Margin %. This places TextMagic AS in the lower half of its industry. The industry median Pretax Margin % is 3.59. 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 Software company?
The median Pretax Margin % among Software companies is 3.59, based on 2,826 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 TextMagic AS and its competitors. For the Software industry, the median Pretax Margin % is 3.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TextMagic AS's current Pretax Margin % is -22.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TextMagic AS stock overvalued right now?
Based on GuruFocus' analysis, TextMagic AS (OTSE:MAGIC) is currently considered Possible Value Trap. The stock's GF Value™ is €3.78, compared to a current price of €1.77 — trading 53.2% below its estimated fair value. The current Pretax Margin % is -22.12%. TextMagic AS's overall GF Score™ is 58/100 with 3 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 TextMagic AS (OTSE:MAGIC), the current Pretax Margin % is -22.12% 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 TextMagic AS (OTSE:MAGIC) Overvalued in 2026?
Based on GuruFocus' analysis, TextMagic AS stock appears to be undervalued.
The current stock price of €1.77 is trading 53.2% below its estimated GF Value™ of €3.78.
GuruFocus considers TextMagic AS to be Possible Value Trap.
Key valuation signals for OTSE:MAGIC:
Pretax Margin %: -22.12%
GF Value™: €3.78 vs. price of €1.77 (53.2% below fair value)
No single metric tells the full story. See the OTSE:MAGIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TextMagic AS is a text messaging company that helps businesses engage with customers. The Group's activities include the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, Australia, and other countries. TextMagic enables companies to transform customer experiences through its text messaging marketing software, which can be used to send notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. Its product and service lines include text messaging services, which generate maximum revenue, virtual mobile number services, other TextMagic platform services, and the Voog.com platform. The company derives the majority of its revenue from the United States.
58GF Score
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Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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