Sumitomo Electric IndustriesSMTOY +1.98%76 Pretax Margin % is 9.28% as of Dec. 2025, which is 67% above its 10-year median of 5.57. GuruFocus rates SMTOY with a GF Score™ of 76/100 and a GF Value™ of $17.93 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,326 Vehicles & Parts companies, Sumitomo Electric Industries ranks better than 76.24% on this metric.
The historical rank and industry rank for Sumitomo Electric Industries's Pretax Margin % or its related term are showing as below:
SMTOY'
s Pretax Margin % Range Over the Past 10 Years
Min: 3.78 Med: 5.57 Max: 9.89
Current: 9.89
SMTOY's Pretax Margin % is ranked better than 76.24% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 4.4
vs SMTOY: 9.89
Sumitomo Electric Industries (OTCPK:SMTOY) 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.
Sumitomo Electric Industries Pretax Margin % Related Terms
Sumitomo Electric Industries 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.
Sumitomo Electric Industries Pretax Margin % Chart
For the Auto Parts subindustry, Sumitomo Electric Industries'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.
Sumitomo Electric Industries Pretax Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Electric Industries's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Sumitomo Electric Industries'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.
Sumitomo Electric Industries (SMTOY) has a Pretax Margin % of 9.28% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sumitomo Electric Industries and its competitors. This is 67% above median its historical median of 5.57. Over the past decade, Sumitomo Electric Industries' Pretax Margin % has ranged from 3.78 to 9.89. According to the industry distribution chart, Sumitomo Electric Industries ranks #315 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 23.8%.
Is Sumitomo Electric Industries' Pretax Margin % too high?
Sumitomo Electric Industries' current Pretax Margin % of 9.28% is 67% above median its 10-year median of 5.57. Over the past 10 years, this metric has ranged from a low of 3.78 to a high of 9.89. The Vehicles & Parts industry median Pretax Margin % is 4.40. Sumitomo Electric Industries' value of 9.28% is 110.9% above this industry median. Based on the distribution chart, Sumitomo Electric Industries ranks #315 out of 1326 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Sumitomo Electric Industries has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Electric Industries' Pretax Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Electric Industries ranks #315 out of 1326 companies for Pretax Margin %. This places Sumitomo Electric Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 4.40. Sumitomo Electric Industries' value of 9.28% is 110.9% above this benchmark. Historically, Sumitomo Electric Industries' own Pretax Margin % has ranged from 3.78 to 9.89 over the past decade. While the company's 10-year median is 5.57 vs. the industry median of 4.40, Sumitomo Electric Industries 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 a Vehicles & Parts company?
The median Pretax Margin % among Vehicles & Parts companies is 4.40, based on 1,326 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. Sumitomo Electric Industries's current Pretax Margin % of 9.28% is 110.9% 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 Sumitomo Electric Industries and its competitors. For the Vehicles & Parts industry, the median Pretax Margin % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Electric Industries's current Pretax Margin % is 9.28%, which is 67% above median its own 10-year median of 5.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Electric Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Electric Industries (SMTOY) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.93, compared to a current price of $76.67 — trading 327.6% above its estimated fair value. The current Pretax Margin % is 9.28%, which is 67% above median its 10-year median of 5.57 and 110.9% above the Vehicles & Parts industry median of 4.40. Sumitomo Electric Industries' overall GF Score™ is 76/100 with 4 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 Sumitomo Electric Industries (SMTOY), the current Pretax Margin % is 9.28% 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 Sumitomo Electric Industries (SMTOY) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Electric Industries stock appears to be overvalued.
The current stock price of $76.67 is trading 327.6% above its estimated GF Value™ of $17.93.
GuruFocus considers Sumitomo Electric Industries to be Significantly Overvalued.
Key valuation signals for SMTOY:
Pretax Margin %: 9.28% (67% above median its 10-year median of 5.57)
GF Value™: $17.93 vs. price of $76.67 (327.6% above fair value)
Industry Position: 110.9% above the Vehicles & Parts median (#315 of 1326)
No single metric tells the full story. See the SMTOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Electric Industries Ltd manufactures and sells electric wires and cables, and other products. The company operates through five segments. The Automotive related business covers wire harnesses, anti-vibration rubber, hoses, electrical parts, and traffic control systems. The Electronics related business provides electronic wires, flexible printed circuits, fluoropolymer products, and metal components. The Environment and Energy related business handles power transmission equipment, substation systems, vacuum and beam equipment, and conductive products. The Industrial Materials business includes steel wire, tools, optical components, and sintered parts. The Information and Communication business offers fiber optic cables, communication equipment, and optical devices.
76GF Score
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