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Security FederalSFDL 73 Pretax Margin % is 34.11% as of Dec. 2025, which is 34% above its 10-year median of 25.55. GuruFocus rates SFDL with a GF Score™ of 73/100 and a GF Value™ of $33.66 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,526 Banks companies, Security Federal ranks worse than 61.86% on this metric.
Security Federal (OTCPK:SFDL) 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.
Security Federal Pretax Margin % Related Terms
Security Federal Pretax Margin % Historical Data
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The historical data trend for Security Federal'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.
SFDL vs CWBK, CTUY, CCNB: Pretax Margin % Comparison
For the Banks - Regional subindustry, Security Federal'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.
Security Federal Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Security Federal's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Security Federal'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.
Security Federal (SFDL) has a Pretax Margin % of 34.11% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Security Federal and its competitors. This is 34% above median its historical median of 25.55. Over the past decade, Security Federal's Pretax Margin % has ranged from 21.11 to 36.40. According to the industry distribution chart, Security Federal ranks #944 out of 1526 companies in the Banks industry, placing it in the top 61.9%.
Is Security Federal's Pretax Margin % too high?
Security Federal's current Pretax Margin % of 34.11% is 34% above median its 10-year median of 25.55. Over the past 10 years, this metric has ranged from a low of 21.11 to a high of 36.40. The Banks industry median Pretax Margin % is 35.37. Security Federal's value of 34.11% is 3.5% below this industry median. Based on the distribution chart, Security Federal ranks #944 out of 1526 companies in the Banks industry, which is below the industry midpoint. Overall, Security Federal has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Security Federal's Pretax Margin % compare to CWBK and CTUY?
According to the Banks industry distribution chart, Security Federal ranks #944 out of 1526 companies for Pretax Margin %. This places Security Federal in the lower half of its industry. The industry median Pretax Margin % is 35.37. Security Federal's value of 34.11% is 3.5% below this benchmark. Historically, Security Federal's own Pretax Margin % has ranged from 21.11 to 36.40 over the past decade. While the company's 10-year median is 25.55 vs. the industry median of 35.37, Security Federal has consistently been below 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 Banks company?
The median Pretax Margin % among Banks companies is 35.37, based on 1,526 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. Security Federal's current Pretax Margin % of 34.11% is 3.5% below 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 Security Federal and its competitors. For the Banks industry, the median Pretax Margin % is 35.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Security Federal's current Pretax Margin % is 34.11%, which is 34% above median its own 10-year median of 25.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Security Federal stock overvalued right now?
Based on GuruFocus' analysis, Security Federal (SFDL) is currently considered Modestly Overvalued. The stock's GF Value™ is $33.66, compared to a current price of $41.67 — trading 23.8% above its estimated fair value. The current Pretax Margin % is 34.11%, which is 34% above median its 10-year median of 25.55 and 3.5% below the Banks industry median of 35.37. Security Federal's overall GF Score™ is 73/100 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 Security Federal (SFDL), the current Pretax Margin % is 34.11% 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 Security Federal (SFDL) Overvalued in 2026?
Based on GuruFocus' analysis, Security Federal stock appears to be overvalued.
The current stock price of $41.67 is trading 23.8% above its estimated GF Value™ of $33.66.
GuruFocus considers Security Federal to be Modestly Overvalued.
Key valuation signals for SFDL:
Pretax Margin %: 34.11% (34% above median its 10-year median of 25.55)
GF Value™: $33.66 vs. price of $41.67 (23.8% above fair value)
Industry Position: 3.5% below the Banks median (#944 of 1526)
No single metric tells the full story. See the SFDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Security Federal Corp and its subsidiaries are involved in the business of providing commercial and personal banking services as well as auto, business, home, and health insurance. The primary business of the company is to accept deposits from the general public and originate commercial real estate loans, commercial business loans, consumer loans as well as mortgage loans to buy or refinance one-to-four family residential real estate. It also originates construction loans and loans for the acquisition, development, and construction of residential subdivisions and commercial projects. The company also operates Security Federal Trust and Investments that offers trust, financial planning, and financial management services.
73GF Score
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