Sparta Commercial ServicesSRCO Pretax Margin % is -440.22% as of Jan. 2026. The stock has 5 warning signs investors should review. Among 2,821 Software companies, Sparta Commercial Services ranks worse than 94.36% 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.
Sparta Commercial Services Pretax Margin % Related Terms
Sparta Commercial Services 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.
SRCO vs GDLG, HTCR, KWIK: Pretax Margin % Comparison
For the Software - Application subindustry, Sparta Commercial Services'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.
Sparta Commercial Services Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Sparta Commercial Services's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Sparta Commercial Services'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.
Sparta Commercial Services (SRCO) has a Pretax Margin % of -440.22% as of Jan. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sparta Commercial Services and its competitors. According to the industry distribution chart, Sparta Commercial Services ranks #2662 out of 2821 companies in the Software industry, placing it in the top 94.4%.
Is Sparta Commercial Services' Pretax Margin % too high?
Sparta Commercial Services' current Pretax Margin % is -440.22%. Based on the distribution chart, Sparta Commercial Services ranks #2662 out of 2821 companies in the Software industry, which is in the bottom quartile relative to peers.
How does Sparta Commercial Services' Pretax Margin % compare to GDLG and HTCR?
According to the Software industry distribution chart, Sparta Commercial Services ranks #2662 out of 2821 companies for Pretax Margin %. This places Sparta Commercial Services in the lower half of its industry. The industry median Pretax Margin % is 3.50. 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 Software company?
The median Pretax Margin % among Software companies is 3.50, based on 2,821 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. 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 Sparta Commercial Services and its competitors. For the Software industry, the median Pretax Margin % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sparta Commercial Services's current Pretax Margin % is -440.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sparta Commercial Services stock overvalued right now?
Based on GuruFocus' analysis, Sparta Commercial Services (SRCO) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.11, compared to a current price of $0.09 — trading 17.9% below its estimated fair value. The current Pretax Margin % is -440.22%. 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 Sparta Commercial Services (SRCO), the current Pretax Margin % is -440.22% as of Jan. 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.
Sparta Commercial Services Inc through its subsidiaries offers technology products and services. The company develops, manages, and markets its business mobile applications for smartphones and tablets. Its mobile application offerings range from racetracks, private clubs, country clubs, restaurants, and grocery stores. The company serves small and medium-size businesses under the tradename iMobileApp. It generates revenue from Information Technology, Wellness products, and Merchant financing.
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