Serverworks CoTSE:4434 +1.69%81 Pretax Margin % is 3.11% as of Feb. 2026, which is 54% below its 10-year median of 6.74. GuruFocus rates TSE:4434 with a GF Score™ of 81/100 and a GF Value™ of 円3,582.50 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,817 Software companies, Serverworks Co ranks worse than 59.78% on this metric.
The historical rank and industry rank for Serverworks Co's Pretax Margin % or its related term are showing as below:
TSE:4434'
s Pretax Margin % Range Over the Past 10 Years
Min: -0.14 Med: 6.74 Max: 13.42
Current: -0.14
TSE:4434's Pretax Margin % is ranked worse than 59.78% of 2817
companies
in the Software industry
Industry Median: 3.57
vs TSE:4434: -0.14
Serverworks Co (TSE:4434) 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.
Serverworks Co Pretax Margin % Related Terms
Serverworks Co Pretax Margin % Historical Data
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The historical data trend for Serverworks 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:4434 vs MSFT, ORCL, PLTR: Pretax Margin % Comparison
For the Software - Infrastructure subindustry, Serverworks 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.
Serverworks Co Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Serverworks Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Serverworks 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.
Serverworks Co (TSE:4434) has a Pretax Margin % of 3.11% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Serverworks Co and its competitors. This is 54% below median its historical median of 6.74. According to the industry distribution chart, Serverworks Co ranks #1684 out of 2817 companies in the Software industry, placing it in the top 59.8%.
Is Serverworks Co's Pretax Margin % too high?
Serverworks Co's current Pretax Margin % of 3.11% is 54% below median its 10-year median of 6.74. The Software industry median Pretax Margin % is 3.57. Serverworks Co's value of 3.11% is 12.9% below this industry median. Based on the distribution chart, Serverworks Co ranks #1684 out of 2817 companies in the Software industry, which is below the industry midpoint. Overall, Serverworks Co has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Serverworks Co's Pretax Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Serverworks Co ranks #1684 out of 2817 companies for Pretax Margin %. This places Serverworks Co in the lower half of its industry. The industry median Pretax Margin % is 3.57. Serverworks Co's value of 3.11% is 12.9% below this benchmark. While the company's 10-year median is 6.74 vs. the industry median of 3.57, Serverworks Co 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 3.57, 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. Serverworks Co's current Pretax Margin % of 3.11% is 12.9% 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 Serverworks 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. Serverworks Co's current Pretax Margin % is 3.11%, which is 54% below median its own 10-year median of 6.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Serverworks Co stock overvalued right now?
Based on GuruFocus' analysis, Serverworks Co (TSE:4434) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,582.50, compared to a current price of 円1,987.00 — trading 44.5% below its estimated fair value. The current Pretax Margin % is 3.11%, which is 54% below median its 10-year median of 6.74 and 12.9% below the Software industry median of 3.57. Serverworks Co's overall GF Score™ is 81/100 with 4 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 Serverworks Co (TSE:4434), the current Pretax Margin % is 3.11% as of Feb. 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 Serverworks Co (TSE:4434) Overvalued in 2026?
Based on GuruFocus' analysis, Serverworks Co stock appears to be undervalued.
The current stock price of 円1,987.00 is trading 44.5% below its estimated GF Value™ of 円3,582.50.
GuruFocus considers Serverworks Co to be Significantly Undervalued.
Key valuation signals for TSE:4434:
Pretax Margin %: 3.11% (54% below median its 10-year median of 6.74)
GF Value™: 円3,582.50 vs. price of 円1,987.00 (44.5% below fair value)
Industry Position: 12.9% below the Software median (#1684 of 2817)
No single metric tells the full story. See the TSE:4434 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Serverworks Co Ltd is a cloud integrator that provides integration business and services specialized for Amazon Web Services (AWS). The company's services include AWS transition support, AWS resale service, AWS operation automation service.
81GF Score
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