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Cognyte SoftwareSTU:81M +1.39%72 Pretax Margin % is 2.44% as of Apr. 2026, which is 7% above its 10-year median of 2.29. GuruFocus rates STU:81M with a GF Score™ of 72/100 and a GF Value™ of €8.28. The stock has 3 warning signs investors should review. Among 2,832 Software companies, Cognyte Software ranks worse than 53.21% 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.
Cognyte Software Pretax Margin % Related Terms
Cognyte Software Pretax Margin % Historical Data
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The historical data trend for Cognyte Software'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.
STU:81M vs HQ, RPD, SABR: Pretax Margin % Comparison
For the Software - Infrastructure subindustry, Cognyte Software'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.
Cognyte Software Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Cognyte Software's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Cognyte Software'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.
Cognyte Software (STU:81M) has a Pretax Margin % of 2.44% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cognyte Software and its competitors. This is near median its historical median of 2.29. According to the industry distribution chart, Cognyte Software ranks #1507 out of 2832 companies in the Software industry, placing it in the top 53.2%.
Is Cognyte Software's Pretax Margin % too high?
Cognyte Software's current Pretax Margin % of 2.44% is near median its 10-year median of 2.29. The Software industry median Pretax Margin % is 3.67. Cognyte Software's value of 2.44% is 33.5% below this industry median. Based on the distribution chart, Cognyte Software ranks #1507 out of 2832 companies in the Software industry, which is below the industry midpoint. Overall, Cognyte Software has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Cognyte Software's Pretax Margin % compare to HQ and RPD?
According to the Software industry distribution chart, Cognyte Software ranks #1507 out of 2832 companies for Pretax Margin %. This places Cognyte Software in the lower half of its industry. The industry median Pretax Margin % is 3.67. Cognyte Software's value of 2.44% is 33.5% below this benchmark. While the company's 10-year median is 2.29 vs. the industry median of 3.67, Cognyte Software 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 Software company?
The median Pretax Margin % among Software companies is 3.67, based on 2,832 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. Cognyte Software's current Pretax Margin % of 2.44% is 33.5% 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 Cognyte Software and its competitors. For the Software industry, the median Pretax Margin % is 3.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognyte Software's current Pretax Margin % is 2.44%, which is near median its own 10-year median of 2.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cognyte Software stock overvalued right now?
Cognyte Software (STU:81M) has a current Pretax Margin % of 2.44%. The stock's GF Value™ is €8.28, compared to a current price of €7.30 — trading 11.8% below its estimated fair value. The current Pretax Margin % is 2.44%, which is near median its 10-year median of 2.29 and 33.5% below the Software industry median of 3.67. Cognyte Software's overall GF Score™ is 72/100 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 Cognyte Software (STU:81M), the current Pretax Margin % is 2.44% as of Apr. 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 Cognyte Software (STU:81M) Overvalued in 2026?
Based on GuruFocus' analysis, Cognyte Software stock appears to be undervalued.
The current stock price of €7.30 is trading 11.8% below its estimated GF Value™ of €8.28.
Key valuation signals for STU:81M:
Pretax Margin %: 2.44% (near median its 10-year median of 2.29)
GF Value™: €8.28 vs. price of €7.30 (11.8% below fair value)
Industry Position: 33.5% below the Software median (#1507 of 2832)
No single metric tells the full story. See the STU:81M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cognyte Software Ltd provides security analytics software that empowers governments and enterprises with Actionable Intelligence. Its interface software is designed to help customers accelerate and improve the effectiveness of investigations and decision-making.
72GF Score
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