Flect CoTSE:4414 +3.04%75 Pretax Margin % is 16.40% as of Mar. 2026, which is 149% above its 10-year median of 6.59. GuruFocus rates TSE:4414 with a GF Score™ of 75/100 and a GF Value™ of 円2,861.55 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,817 Software companies, Flect Co ranks better than 77.99% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Flect Co's Pre-Tax Income for the
six
months ended in Mar. 2026 was 円728 Mil. Flect Co's Revenue for the
six
months ended in Mar. 2026 was 円4,438 Mil. Therefore, Flect Co's pretax margin for the quarter that ended in Mar. 2026 was 16.40%.
The historical rank and industry rank for Flect Co's Pretax Margin % or its related term are showing as below:
TSE:4414'
s Pretax Margin % Range Over the Past 10 Years
Min: -7.59 Med: 6.59 Max: 13.84
Current: 13.84
TSE:4414's Pretax Margin % is ranked better than 77.99% of 2817
companies
in the Software industry
Industry Median: 3.57
vs TSE:4414: 13.84
Flect Co (TSE:4414) 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.
Flect Co Pretax Margin % Related Terms
Flect Co Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Flect Co'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:4414 vs MSFT, ORCL, PLTR: Pretax Margin % Comparison
For the Software - Infrastructure subindustry, Flect Co'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.
Flect Co Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Flect Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Flect Co'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.
Flect Co (TSE:4414) has a Pretax Margin % of 16.40% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Flect Co and its competitors. This is 149% above median its historical median of 6.59. According to the industry distribution chart, Flect Co ranks #620 out of 2817 companies in the Software industry, placing it in the top 22%.
Is Flect Co's Pretax Margin % too high?
Flect Co's current Pretax Margin % of 16.40% is 149% above median its 10-year median of 6.59. The Software industry median Pretax Margin % is 3.57. Flect Co's value of 16.40% is 359.4% above this industry median. Based on the distribution chart, Flect Co ranks #620 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Flect Co has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Flect Co's Pretax Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Flect Co ranks #620 out of 2817 companies for Pretax Margin %. This places Flect Co in the top 22% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.57. Flect Co's value of 16.40% is 359.4% above this benchmark. While the company's 10-year median is 6.59 vs. the industry median of 3.57, Flect Co 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 3.57, based on 2,817 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. Flect Co's current Pretax Margin % of 16.40% is 359.4% 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 Flect Co and its competitors. For the Software industry, the median Pretax Margin % is 3.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Flect Co's current Pretax Margin % is 16.40%, which is 149% above median its own 10-year median of 6.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flect Co stock overvalued right now?
Based on GuruFocus' analysis, Flect Co (TSE:4414) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,861.55, compared to a current price of 円1,185.00 — trading 58.6% below its estimated fair value. The current Pretax Margin % is 16.40%, which is 149% above median its 10-year median of 6.59 and 359.4% above the Software industry median of 3.57. Flect Co's overall GF Score™ is 75/100 with 1 warning sign 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 Flect Co (TSE:4414), the current Pretax Margin % is 16.40% 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 Flect Co (TSE:4414) Overvalued in 2026?
Based on GuruFocus' analysis, Flect Co stock appears to be undervalued.
The current stock price of 円1,185.00 is trading 58.6% below its estimated GF Value™ of 円2,861.55.
GuruFocus considers Flect Co to be Significantly Undervalued.
Key valuation signals for TSE:4414:
Pretax Margin %: 16.40% (149% above median its 10-year median of 6.59)
GF Value™: 円2,861.55 vs. price of 円1,185.00 (58.6% below fair value)
Industry Position: 359.4% above the Software median (#620 of 2817)
No single metric tells the full story. See the TSE:4414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Flect Co Ltd is a multi-cloud integrator that supports companies' digital transformation (DX) with cloud technology and design. The company provides a range of digital solutions for domestic businesses, including IoT, mobility, and AI services across multiple cloud platforms. It also offers e-commerce systems for both corporate clients (B2B) and customer-facing retail (B2C), along with community platforms to enhance customer engagement. Additionally, it supports API, ID, and data integration through its unified platforms. It operates in a single segment, the cloud solutions business.
75GF Score
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