Change HoldingsTSE:3962 -0.33%69 Pretax Margin % is 2.19% as of Mar. 2026, which is 89% below its 10-year median of 20.23. GuruFocus rates TSE:3962 with a GF Score™ of 69/100 and a GF Value™ of 円1,870.94 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,816 Software companies, Change Holdings ranks better than 87.36% 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.
Change Holdings Pretax Margin % Related Terms
Change Holdings Pretax Margin % Historical Data
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The historical data trend for Change Holdings'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.
TSE:3962 vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, Change Holdings'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.
Change Holdings Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Change Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Change Holdings'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.
Change Holdings (TSE:3962) has a Pretax Margin % of 2.19% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Change Holdings and its competitors. This is 89% below median its historical median of 20.23. Over the past decade, Change Holdings' Pretax Margin % has ranged from 11.32 to 39.46. According to the industry distribution chart, Change Holdings ranks #356 out of 2816 companies in the Software industry, placing it in the top 12.6%.
Is Change Holdings' Pretax Margin % too high?
Change Holdings' current Pretax Margin % of 2.19% is 89% below median its 10-year median of 20.23. Over the past 10 years, this metric has ranged from a low of 11.32 to a high of 39.46. The Software industry median Pretax Margin % is 3.56. Change Holdings' value of 2.19% is 38.5% below this industry median. Based on the distribution chart, Change Holdings ranks #356 out of 2816 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Change Holdings has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Change Holdings' Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Change Holdings ranks #356 out of 2816 companies for Pretax Margin %. This places Change Holdings in the top 13% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.56. Change Holdings' value of 2.19% is 38.5% below this benchmark. Historically, Change Holdings' own Pretax Margin % has ranged from 11.32 to 39.46 over the past decade. While the company's 10-year median is 20.23 vs. the industry median of 3.56, Change Holdings 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 3.56, based on 2,816 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. Change Holdings's current Pretax Margin % of 2.19% is 38.5% 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 Change Holdings and its competitors. For the Software industry, the median Pretax Margin % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Change Holdings's current Pretax Margin % is 2.19%, which is 89% below median its own 10-year median of 20.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Change Holdings stock overvalued right now?
Based on GuruFocus' analysis, Change Holdings (TSE:3962) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,870.94, compared to a current price of 円914.00 — trading 51.1% below its estimated fair value. The current Pretax Margin % is 2.19%, which is 89% below median its 10-year median of 20.23 and 38.5% below the Software industry median of 3.56. Change Holdings' overall GF Score™ is 69/100 with 5 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 Change Holdings (TSE:3962), the current Pretax Margin % is 2.19% 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 Change Holdings (TSE:3962) Overvalued in 2026?
Based on GuruFocus' analysis, Change Holdings stock appears to be undervalued.
The current stock price of 円914.00 is trading 51.1% below its estimated GF Value™ of 円1,870.94.
GuruFocus considers Change Holdings to be Significantly Undervalued.
Key valuation signals for TSE:3962:
Pretax Margin %: 2.19% (89% below median its 10-year median of 20.23)
GF Value™: 円1,870.94 vs. price of 円914.00 (51.1% below fair value)
Industry Position: 38.5% below the Software median (#356 of 2816)
No single metric tells the full story. See the TSE:3962 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Change Holdings Inc provides mobility, IoT (Internet of Things) data, security and IT human resources training services. It segments are: Public Tech and NEW-IT Transformation Business. The Public Tech segment covers local government support projects that aims to realize high value-added resident services by utilizing ICT technology to promote the improvement of local government business productivity. The NEW-IT Transformation Business segment promotes digital transformation through various algorithms such as AI, voice Internet, mobility, IoT, cloud, security, services utilizing basic technology, and training for digital human resources. It also provides digital transformation solutions by combining libraries based on customer needs to realize customer digital transformation.
69GF Score
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