BroadBand SecurityTSE:4398 -0.08%77 Pretax Margin % is 5.68% as of Dec. 2025, which is 20% above its 10-year median of 4.72. GuruFocus rates TSE:4398 with a GF Score™ of 77/100 and a GF Value™ of 円1,513.07 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,818 Software companies, BroadBand Security ranks better than 54.05% 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.
BroadBand Security Pretax Margin % Related Terms
BroadBand Security Pretax Margin % Historical Data
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The historical data trend for BroadBand Security'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:4398 vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, BroadBand Security'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.
BroadBand Security Pretax Margin % vs Software Industry
For the Software industry and Technology sector, BroadBand Security's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where BroadBand Security'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.
BroadBand Security (TSE:4398) has a Pretax Margin % of 5.68% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on BroadBand Security and its competitors. This is 20% above median its historical median of 4.72. Over the past decade, BroadBand Security's Pretax Margin % has ranged from 1.93 to 10.72. According to the industry distribution chart, BroadBand Security ranks #1295 out of 2818 companies in the Software industry, placing it in the top 46%.
Is BroadBand Security's Pretax Margin % too high?
BroadBand Security's current Pretax Margin % of 5.68% is 20% above median its 10-year median of 4.72. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 10.72. The Software industry median Pretax Margin % is 3.60. BroadBand Security's value of 5.68% is 58% above this industry median. Based on the distribution chart, BroadBand Security ranks #1295 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, BroadBand Security has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does BroadBand Security's Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, BroadBand Security ranks #1295 out of 2818 companies for Pretax Margin %. This puts BroadBand Security in the upper half of its industry. The industry median Pretax Margin % is 3.60. BroadBand Security's value of 5.68% is 58% above this benchmark. Historically, BroadBand Security's own Pretax Margin % has ranged from 1.93 to 10.72 over the past decade. While the company's 10-year median is 4.72 vs. the industry median of 3.60, BroadBand Security 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 3.60, based on 2,818 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. BroadBand Security's current Pretax Margin % of 5.68% is 58% 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 BroadBand Security and its competitors. For the Software industry, the median Pretax Margin % is 3.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BroadBand Security's current Pretax Margin % is 5.68%, which is 20% above median its own 10-year median of 4.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BroadBand Security stock overvalued right now?
Based on GuruFocus' analysis, BroadBand Security (TSE:4398) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,513.07, compared to a current price of 円1,240.00 — trading 18% below its estimated fair value. The current Pretax Margin % is 5.68%, which is 20% above median its 10-year median of 4.72 and 58% above the Software industry median of 3.60. BroadBand Security's overall GF Score™ is 77/100 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 BroadBand Security (TSE:4398), the current Pretax Margin % is 5.68% 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 BroadBand Security (TSE:4398) Overvalued in 2026?
Based on GuruFocus' analysis, BroadBand Security stock appears to be undervalued.
The current stock price of 円1,240.00 is trading 18% below its estimated GF Value™ of 円1,513.07.
GuruFocus considers BroadBand Security to be Modestly Undervalued.
Key valuation signals for TSE:4398:
Pretax Margin %: 5.68% (20% above median its 10-year median of 4.72)
GF Value™: 円1,513.07 vs. price of 円1,240.00 (18% below fair value)
Industry Position: 58% above the Software median (#1295 of 2818)
No single metric tells the full story. See the TSE:4398 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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