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China Railway ConstructionSHSE:601186 +0.77%68 Pretax Margin % is 2.57% as of Mar. 2026, which is 24% below its 10-year median of 3.39. GuruFocus rates SHSE:601186 with a GF Score™ of 68/100 and a GF Value™ of ¥7.43 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,764 Construction companies, China Railway Construction ranks worse than 65.42% on this metric.
The historical rank and industry rank for China Railway Construction's Pretax Margin % or its related term are showing as below:
SHSE:601186'
s Pretax Margin % Range Over the Past 10 Years
Min: 2.54 Med: 3.39 Max: 3.46
Current: 2.54
SHSE:601186's Pretax Margin % is ranked worse than 65.42% of 1764
companies
in the Construction industry
Industry Median: 5.47
vs SHSE:601186: 2.54
China Railway Construction (SHSE:601186) 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.
China Railway Construction Pretax Margin % Related Terms
China Railway Construction Pretax Margin % Historical Data
* 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.
SHSE:601186 vs PWR, FIX, EME: Pretax Margin % Comparison
For the Engineering & Construction subindustry, China Railway Construction'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.
China Railway Construction Pretax Margin % vs Construction Industry
For the Construction industry and Industrials sector, China Railway Construction's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where China Railway Construction'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.
China Railway Construction (SHSE:601186) has a Pretax Margin % of 2.57% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on China Railway Construction and its competitors. This is 24% below median its historical median of 3.39. Over the past decade, China Railway Construction's Pretax Margin % has ranged from 2.54 to 3.46. According to the industry distribution chart, China Railway Construction ranks #1154 out of 1764 companies in the Construction industry, placing it in the top 65.4%.
Is China Railway Construction's Pretax Margin % too high?
China Railway Construction's current Pretax Margin % of 2.57% is 24% below median its 10-year median of 3.39. Over the past 10 years, this metric has ranged from a low of 2.54 to a high of 3.46. The Construction industry median Pretax Margin % is 5.47. China Railway Construction's value of 2.57% is 53% below this industry median. Based on the distribution chart, China Railway Construction ranks #1154 out of 1764 companies in the Construction industry, which is below the industry midpoint. Overall, China Railway Construction has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Construction's Pretax Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, China Railway Construction ranks #1154 out of 1764 companies for Pretax Margin %. This places China Railway Construction in the lower half of its industry. The industry median Pretax Margin % is 5.47. China Railway Construction's value of 2.57% is 53% below this benchmark. Historically, China Railway Construction's own Pretax Margin % has ranged from 2.54 to 3.46 over the past decade. While the company's 10-year median is 3.39 vs. the industry median of 5.47, China Railway Construction 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 Construction company?
The median Pretax Margin % among Construction companies is 5.47, based on 1,764 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. China Railway Construction's current Pretax Margin % of 2.57% is 53% 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 China Railway Construction and its competitors. For the Construction industry, the median Pretax Margin % is 5.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Construction's current Pretax Margin % is 2.57%, which is 24% below median its own 10-year median of 3.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Construction stock overvalued right now?
Based on GuruFocus' analysis, China Railway Construction (SHSE:601186) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥7.43, compared to a current price of ¥6.58 — trading 11.4% below its estimated fair value. The current Pretax Margin % is 2.57%, which is 24% below median its 10-year median of 3.39 and 53% below the Construction industry median of 5.47. China Railway Construction's overall GF Score™ is 68/100 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 China Railway Construction (SHSE:601186), the current Pretax Margin % is 2.57% 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 China Railway Construction (SHSE:601186) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Construction stock appears to be undervalued.
The current stock price of ¥6.58 is trading 11.4% below its estimated GF Value™ of ¥7.43.
GuruFocus considers China Railway Construction to be Modestly Undervalued.
Key valuation signals for SHSE:601186:
Pretax Margin %: 2.57% (24% below median its 10-year median of 3.39)
GF Value™: ¥7.43 vs. price of ¥6.58 (11.4% below fair value)
Industry Position: 53% below the Construction median (#1154 of 1764)
No single metric tells the full story. See the SHSE:601186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Construction Corp Ltd operates as an infrastructure construction firm. It largely derives contracting revenue. It builds railways, highways and municipal works, such as subways and light rail systems. The company also engages in survey and design, manufacturing, logistics, and property development. It operates the following business segments: Engineering contracting business, Planning, design and consultancy, Manufacturing operation, Real estate development operation, Materials and logistics and other businesses. The firm's revenue gets dominated by the Engineering contracting business segment that engages in the construction of infrastructure such as railways, highways, metropolitan railways, and real estate projects.
68GF Score
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