Towne BankTOWN +0.61%65 Pretax Margin % is 20.38% as of Mar. 2026, which is 34% below its 10-year median of 30.85. GuruFocus rates TOWN with a GF Score™ of 65/100 and a GF Value™ of $36.97 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,530 Banks companies, Towne Bank ranks worse than 76.54% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Towne Bank's Pre-Tax Income for the
three
months ended in Mar. 2026 was $50.2 Mil. Towne Bank's Revenue for the
three
months ended in Mar. 2026 was $246.4 Mil. Therefore, Towne Bank's pretax margin for the quarter that ended in Mar. 2026 was 20.38%.
The historical rank and industry rank for Towne Bank's Pretax Margin % or its related term are showing as below:
TOWN'
s Pretax Margin % Range Over the Past 10 Years
Min: 22.67 Med: 30.85 Max: 41.21
Current: 22.67
TOWN's Pretax Margin % is ranked worse than 76.54% of 1530
companies
in the Banks industry
Industry Median: 34.715
vs TOWN: 22.67
Towne Bank (NAS:TOWN) 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.
Towne Bank Pretax Margin % Related Terms
Towne Bank Pretax Margin % Historical Data
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The historical data trend for Towne Bank'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.
TOWN vs SFNC, PRK, BOH: Pretax Margin % Comparison
For the Banks - Regional subindustry, Towne Bank'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.
Towne Bank Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Towne Bank's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Towne Bank'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.
Towne Bank (TOWN) has a Pretax Margin % of 20.38% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Towne Bank and its competitors. This is 34% below median its historical median of 30.85. Over the past decade, Towne Bank's Pretax Margin % has ranged from 22.67 to 41.21. According to the industry distribution chart, Towne Bank ranks #1171 out of 1530 companies in the Banks industry, placing it in the top 76.5%.
Is Towne Bank's Pretax Margin % too high?
Towne Bank's current Pretax Margin % of 20.38% is 34% below median its 10-year median of 30.85. Over the past 10 years, this metric has ranged from a low of 22.67 to a high of 41.21. The Banks industry median Pretax Margin % is 34.72. Towne Bank's value of 20.38% is 41.3% below this industry median. Based on the distribution chart, Towne Bank ranks #1171 out of 1530 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Towne Bank has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Towne Bank's Pretax Margin % compare to SFNC and PRK?
According to the Banks industry distribution chart, Towne Bank ranks #1171 out of 1530 companies for Pretax Margin %. This places Towne Bank in the lower half of its industry. The industry median Pretax Margin % is 34.72. Towne Bank's value of 20.38% is 41.3% below this benchmark. Historically, Towne Bank's own Pretax Margin % has ranged from 22.67 to 41.21 over the past decade. While the company's 10-year median is 30.85 vs. the industry median of 34.72, Towne Bank 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 Banks company?
The median Pretax Margin % among Banks companies is 34.72, based on 1,530 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. Towne Bank's current Pretax Margin % of 20.38% is 41.3% 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 Towne Bank and its competitors. For the Banks industry, the median Pretax Margin % is 34.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Towne Bank's current Pretax Margin % is 20.38%, which is 34% below median its own 10-year median of 30.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Towne Bank stock overvalued right now?
Based on GuruFocus' analysis, Towne Bank (TOWN) is currently considered Fairly Valued. The stock's GF Value™ is $36.97, compared to a current price of $36.36 — trading 1.6% below its estimated fair value. The current Pretax Margin % is 20.38%, which is 34% below median its 10-year median of 30.85 and 41.3% below the Banks industry median of 34.72. Towne Bank's overall GF Score™ is 65/100 with 2 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 Towne Bank (TOWN), the current Pretax Margin % is 20.38% 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 Towne Bank (TOWN) Overvalued in 2026?
Based on GuruFocus' analysis, Towne Bank stock appears to be undervalued.
The current stock price of $36.36 is trading 1.6% below its estimated GF Value™ of $36.97.
GuruFocus considers Towne Bank to be Fairly Valued.
Key valuation signals for TOWN:
Pretax Margin %: 20.38% (34% below median its 10-year median of 30.85)
GF Value™: $36.97 vs. price of $36.36 (1.6% below fair value)
Industry Position: 41.3% below the Banks median (#1171 of 1530)
No single metric tells the full story. See the TOWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Towne Bank is a financial services company serving individuals, commercial enterprises and professionals, offering retail and commercial banking services in Virginia and North Carolina. The company has four reportable segments: Banking, which provides loan and deposit services, commercial mortgage brokerage, and investment and asset management services; Mortgage, which originates mortgage loans principally sold in the secondary market through purchase commitments from investors; Resort Vacation Management, which provides residential resort property management services; and Insurance, which provides property, casualty, life and health insurance solutions for businesses, individuals and community organizations through a variety of carriers.
65GF Score
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