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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.
EmbedWay Technologies (Shanghai) Pretax Margin % Related Terms
EmbedWay Technologies (Shanghai) 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:603496 vs CSCO, MSI, HPE: Pretax Margin % Comparison
For the Communication Equipment subindustry, EmbedWay Technologies (Shanghai)'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.
EmbedWay Technologies (Shanghai) Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, EmbedWay Technologies (Shanghai)'s Pretax Margin % distribution charts can be found below:
* The bar in red indicates where EmbedWay Technologies (Shanghai)'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.
EmbedWay Technologies (Shanghai) (SHSE:603496) has a Pretax Margin % of 3.58% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on EmbedWay Technologies (Shanghai) and its competitors. This is 64% below median its historical median of 9.87. Over the past decade, EmbedWay Technologies (Shanghai)'s Pretax Margin % has ranged from 3.06 to 26.66. According to the industry distribution chart, EmbedWay Technologies (Shanghai) ranks #1144 out of 2475 companies in the Hardware industry, placing it in the top 46.2%.
Is EmbedWay Technologies (Shanghai)'s Pretax Margin % too high?
EmbedWay Technologies (Shanghai)'s current Pretax Margin % of 3.58% is 64% below median its 10-year median of 9.87. Over the past 10 years, this metric has ranged from a low of 3.06 to a high of 26.66. The Hardware industry median Pretax Margin % is 3.60. EmbedWay Technologies (Shanghai)'s value of 3.58% is 0.6% below this industry median. Based on the distribution chart, EmbedWay Technologies (Shanghai) ranks #1144 out of 2475 companies in the Hardware industry, which is above the industry midpoint. Overall, EmbedWay Technologies (Shanghai) has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EmbedWay Technologies (Shanghai)'s Pretax Margin % compare to CSCO and MSI?
According to the Hardware industry distribution chart, EmbedWay Technologies (Shanghai) ranks #1144 out of 2475 companies for Pretax Margin %. This puts EmbedWay Technologies (Shanghai) in the upper half of its industry. The industry median Pretax Margin % is 3.60. EmbedWay Technologies (Shanghai)'s value of 3.58% is 0.6% below this benchmark. Historically, EmbedWay Technologies (Shanghai)'s own Pretax Margin % has ranged from 3.06 to 26.66 over the past decade. While the company's 10-year median is 9.87 vs. the industry median of 3.60, EmbedWay Technologies (Shanghai) 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 Hardware company?
The median Pretax Margin % among Hardware companies is 3.60, based on 2,475 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. EmbedWay Technologies (Shanghai)'s current Pretax Margin % of 3.58% is 0.6% 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 EmbedWay Technologies (Shanghai) and its competitors. For the Hardware industry, the median Pretax Margin % is 3.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EmbedWay Technologies (Shanghai)'s current Pretax Margin % is 3.58%, which is 64% below median its own 10-year median of 9.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EmbedWay Technologies (Shanghai) stock overvalued right now?
Based on GuruFocus' analysis, EmbedWay Technologies (Shanghai) (SHSE:603496) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥37.99, compared to a current price of ¥25.48 — trading 32.9% below its estimated fair value. The current Pretax Margin % is 3.58%, which is 64% below median its 10-year median of 9.87 and 0.6% below the Hardware industry median of 3.60. EmbedWay Technologies (Shanghai)'s overall GF Score™ is 80/100 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 EmbedWay Technologies (Shanghai) (SHSE:603496), the current Pretax Margin % is 3.58% 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 EmbedWay Technologies (Shanghai) (SHSE:603496) Overvalued in 2026?
Based on GuruFocus' analysis, EmbedWay Technologies (Shanghai) stock appears to be undervalued.
The current stock price of ¥25.48 is trading 32.9% below its estimated GF Value™ of ¥37.99.
GuruFocus considers EmbedWay Technologies (Shanghai) to be Significantly Undervalued.
Key valuation signals for SHSE:603496:
Pretax Margin %: 3.58% (64% below median its 10-year median of 9.87)
GF Value™: ¥37.99 vs. price of ¥25.48 (32.9% below fair value)
Industry Position: 0.6% below the Hardware median (#1144 of 2475)
No single metric tells the full story. See the SHSE:603496 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EmbedWay Technologies (Shanghai) Business Description
EmbedWay Technologies (Shanghai) Corp is a supplier of DPI front-end applications and standard platforms. It provides products and solutions to various applications, such as telecommunications value-added services, internet safety, network and signaling monitoring, and communication equipment producing, among others. The products of the company are blade platform, standalone device, acceleration card, white box switches, converged computing, media processing, ATCA blade, and others.
80GF Score
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