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Kwong Fong IndustriesTPE:1416 +0.45%65 Pretax Margin % is 33.74% as of Dec. 2025, which is 15% below its 10-year median of 39.73. GuruFocus rates TPE:1416 with a GF Score™ of 65/100 and a GF Value™ of NT$15.42 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,826 Software companies, Kwong Fong Industries ranks better than 97.35% 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.
Kwong Fong Industries Pretax Margin % Related Terms
Kwong Fong Industries Pretax Margin % Historical Data
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The historical data trend for Kwong Fong Industries'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.
TPE:1416 vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, Kwong Fong 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.
Kwong Fong Industries Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Kwong Fong Industries's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Kwong Fong 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.
Kwong Fong Industries (TPE:1416) has a Pretax Margin % of 33.74% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Kwong Fong Industries and its competitors. This is 15% below median its historical median of 39.73. According to the industry distribution chart, Kwong Fong Industries ranks #75 out of 2826 companies in the Software industry, placing it in the top 2.7%.
Is Kwong Fong Industries' Pretax Margin % too high?
Kwong Fong Industries' current Pretax Margin % of 33.74% is 15% below median its 10-year median of 39.73. The Software industry median Pretax Margin % is 3.58. Kwong Fong Industries' value of 33.74% is 842.5% above this industry median. Based on the distribution chart, Kwong Fong Industries ranks #75 out of 2826 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Kwong Fong Industries has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kwong Fong Industries' Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kwong Fong Industries ranks #75 out of 2826 companies for Pretax Margin %. This places Kwong Fong Industries in the top 3% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.58. Kwong Fong Industries' value of 33.74% is 842.5% above this benchmark. While the company's 10-year median is 39.73 vs. the industry median of 3.58, Kwong Fong 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 Software company?
The median Pretax Margin % among Software companies is 3.58, based on 2,826 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. Kwong Fong Industries's current Pretax Margin % of 33.74% is 842.5% 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 Kwong Fong Industries and its competitors. For the Software industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwong Fong Industries's current Pretax Margin % is 33.74%, which is 15% below median its own 10-year median of 39.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwong Fong Industries stock overvalued right now?
Based on GuruFocus' analysis, Kwong Fong Industries (TPE:1416) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$15.42, compared to a current price of NT$11.25 — trading 27% below its estimated fair value. The current Pretax Margin % is 33.74%, which is 15% below median its 10-year median of 39.73 and 842.5% above the Software industry median of 3.58. Kwong Fong Industries' overall GF Score™ is 65/100 with 6 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 Kwong Fong Industries (TPE:1416), the current Pretax Margin % is 33.74% 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 Kwong Fong Industries (TPE:1416) Overvalued in 2026?
Based on GuruFocus' analysis, Kwong Fong Industries stock appears to be undervalued.
The current stock price of NT$11.25 is trading 27% below its estimated GF Value™ of NT$15.42.
GuruFocus considers Kwong Fong Industries to be Modestly Undervalued.
Key valuation signals for TPE:1416:
Pretax Margin %: 33.74% (15% below median its 10-year median of 39.73)
GF Value™: NT$15.42 vs. price of NT$11.25 (27% below fair value)
Industry Position: 842.5% above the Software median (#75 of 2826)
No single metric tells the full story. See the TPE:1416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwong Fong Industries Corp main business items include housing and building development and rental, real estate business, mall management, information software services, and electronic information supply services. The company's segment includes the Kwong Fong Department, the Pao Fong Asset Management Department, the Kwong Fong Holdings Department, and the Digital Technology Department. The company generates the majority of its revenue from the Digital Technology Department, which is engaged in Information Software Services. The company generates all of its revenue from Taiwan. The company's revenue is derived from information services, software sales, and real estate sales.
65GF Score
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