Royce Micro-Cap TrustRMT 40 Pretax Margin % is 101.78% as of Dec. 2025, which is 3% above its 10-year median of 98.95. GuruFocus rates RMT with a GF Score™ of 40/100 and a GF Value™ of $10.44 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,576 Asset Management companies, Royce Micro-Cap Trust ranks better than 75.63% on this metric.
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.
Royce Micro-Cap Trust Pretax Margin % Related Terms
Royce Micro-Cap Trust Pretax Margin % Historical Data
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The historical data trend for Royce Micro-Cap Trust'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.
RMT vs CGBD, NIE, NMFC: Pretax Margin % Comparison
For the Asset Management subindustry, Royce Micro-Cap Trust'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.
Royce Micro-Cap Trust Pretax Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Royce Micro-Cap Trust's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Royce Micro-Cap Trust'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.
Royce Micro-Cap Trust (RMT) has a Pretax Margin % of 101.78% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Royce Micro-Cap Trust and its competitors. This is near median its historical median of 98.95. Over the past decade, Royce Micro-Cap Trust's Pretax Margin % has ranged from 98.17 to 101.47. According to the industry distribution chart, Royce Micro-Cap Trust ranks #384 out of 1576 companies in the Asset Management industry, placing it in the top 24.4%.
Is Royce Micro-Cap Trust's Pretax Margin % too high?
Royce Micro-Cap Trust's current Pretax Margin % of 101.78% is near median its 10-year median of 98.95. Over the past 10 years, this metric has ranged from a low of 98.17 to a high of 101.47. The Asset Management industry median Pretax Margin % is 89.48. Royce Micro-Cap Trust's value of 101.78% is 13.8% above this industry median. Based on the distribution chart, Royce Micro-Cap Trust ranks #384 out of 1576 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Royce Micro-Cap Trust has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royce Micro-Cap Trust's Pretax Margin % compare to CGBD and NIE?
According to the Asset Management industry distribution chart, Royce Micro-Cap Trust ranks #384 out of 1576 companies for Pretax Margin %. This places Royce Micro-Cap Trust in the top 24% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 89.48. Royce Micro-Cap Trust's value of 101.78% is 13.8% above this benchmark. Historically, Royce Micro-Cap Trust's own Pretax Margin % has ranged from 98.17 to 101.47 over the past decade. While the company's 10-year median is 98.95 vs. the industry median of 89.48, Royce Micro-Cap Trust 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 an Asset Management company?
The median Pretax Margin % among Asset Management companies is 89.48, based on 1,576 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. Royce Micro-Cap Trust's current Pretax Margin % of 101.78% is 13.8% 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 Royce Micro-Cap Trust and its competitors. For the Asset Management industry, the median Pretax Margin % is 89.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royce Micro-Cap Trust's current Pretax Margin % is 101.78%, which is near median its own 10-year median of 98.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royce Micro-Cap Trust stock overvalued right now?
Based on GuruFocus' analysis, Royce Micro-Cap Trust (RMT) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.44, compared to a current price of $14.12 — trading 35.2% above its estimated fair value. The current Pretax Margin % is 101.78%, which is near median its 10-year median of 98.95 and 13.8% above the Asset Management industry median of 89.48. Royce Micro-Cap Trust's overall GF Score™ is 40/100 with 8 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 Royce Micro-Cap Trust (RMT), the current Pretax Margin % is 101.78% 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 Royce Micro-Cap Trust (RMT) Overvalued in 2026?
Based on GuruFocus' analysis, Royce Micro-Cap Trust stock appears to be overvalued.
The current stock price of $14.12 is trading 35.2% above its estimated GF Value™ of $10.44.
GuruFocus considers Royce Micro-Cap Trust to be Significantly Overvalued.
Key valuation signals for RMT:
Pretax Margin %: 101.78% (near median its 10-year median of 98.95)
GF Value™: $10.44 vs. price of $14.12 (35.2% above fair value)
Industry Position: 13.8% above the Asset Management median (#384 of 1576)
No single metric tells the full story. See the RMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royce Micro-Cap Trust Inc is a diversified closed-end investment company. The company is engaged in investing in micro-cap securities. It invests in the consumer discretionary sector, including diversified consumer services, hotels, household durables, leisure products, and luxury goods. Consumer staples sector, including beverages, food, and staples retailing, food products, and personal products, Energy sector, including energy equipment and services, and oil, gas, and consumable fuels. The company also invests in other sectors, including healthcare, financials, industrials, IT, telecommunications, and materials.
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