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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.
Recon Technology Pretax Margin % Related Terms
Recon Technology Pretax Margin % Historical Data
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The historical data trend for Recon Technology'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.
RCON vs KLNG, KLXE, GWTI: Pretax Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Recon Technology'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.
Recon Technology Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Recon Technology's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Recon Technology'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.
Recon Technology (RCON) has a Pretax Margin % of -8.50% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Recon Technology and its competitors. According to the industry distribution chart, Recon Technology ranks #757 out of 919 companies in the Oil & Gas industry, placing it in the top 82.4%.
Is Recon Technology's Pretax Margin % too high?
Recon Technology's current Pretax Margin % is -8.50%. Based on the distribution chart, Recon Technology ranks #757 out of 919 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Recon Technology has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Recon Technology's Pretax Margin % compare to KLNG and KLXE?
According to the Oil & Gas industry distribution chart, Recon Technology ranks #757 out of 919 companies for Pretax Margin %. This places Recon Technology in the lower half of its industry. The industry median Pretax Margin % is 5.27. 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 an Oil & Gas company?
The median Pretax Margin % among Oil & Gas companies is 5.27, based on 919 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 Recon Technology and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Recon Technology's current Pretax Margin % is -8.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recon Technology stock overvalued right now?
Based on GuruFocus' analysis, Recon Technology (RCON) is currently considered Possible Value Trap. The stock's GF Value™ is $2.49, compared to a current price of $0.47 — trading 81.1% below its estimated fair value. The current Pretax Margin % is -8.50%. Recon Technology's overall GF Score™ is 47/100 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 Recon Technology (RCON), the current Pretax Margin % is -8.50% 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 Recon Technology (RCON) Overvalued in 2026?
Based on GuruFocus' analysis, Recon Technology stock appears to be undervalued.
The current stock price of $0.47 is trading 81.1% below its estimated GF Value™ of $2.49.
GuruFocus considers Recon Technology to be Possible Value Trap.
Key valuation signals for RCON:
Pretax Margin %: -8.50%
GF Value™: $2.49 vs. price of $0.47 (81.1% below fair value)
No single metric tells the full story. See the RCON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Recon Technology Ltd provides automation systems, industrial equipment, and support services tailored for the oil and gas industry in China. The company's business spans key segments such as automation products and software, equipment and accessories, oilfield environmental protection, and platform outsourcing services. It generates the majority of its revenue by providing integrated automation services to Chinese petroleum companies at oilfields. Its key products and services include pumping unit controllers, natural gas flow computer systems, wireless dynamometers and wireless pressure gauges, and an oilfield monitor and data acquisition system. The company's operations are centered on servicing upstream clients throughout China, with some broader industrial automation solutions.
47GF Score
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