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Showa System Engineering (TSE:4752) 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.
Showa System Engineering Pretax Margin % Related Terms
Showa System Engineering Pretax Margin % Historical Data
* 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:4752 vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, Showa System Engineering'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.
Showa System Engineering Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Showa System Engineering's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Showa System Engineering'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.
Showa System Engineering (TSE:4752) has a Pretax Margin % of 9.26% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Showa System Engineering and its competitors. This is near median its historical median of 9.12. Over the past decade, Showa System Engineering's Pretax Margin % has ranged from 7.22 to 12.35. According to the industry distribution chart, Showa System Engineering ranks #713 out of 2832 companies in the Software industry, placing it in the top 25.2%.
Is Showa System Engineering's Pretax Margin % too high?
Showa System Engineering's current Pretax Margin % of 9.26% is near median its 10-year median of 9.12. Over the past 10 years, this metric has ranged from a low of 7.22 to a high of 12.35. The Software industry median Pretax Margin % is 3.76. Showa System Engineering's value of 9.26% is 146.3% above this industry median. Based on the distribution chart, Showa System Engineering ranks #713 out of 2832 companies in the Software industry, which is above the industry midpoint. Overall, Showa System Engineering has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Showa System Engineering's Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Showa System Engineering ranks #713 out of 2832 companies for Pretax Margin %. This puts Showa System Engineering in the upper half of its industry. The industry median Pretax Margin % is 3.76. Showa System Engineering's value of 9.26% is 146.3% above this benchmark. Historically, Showa System Engineering's own Pretax Margin % has ranged from 7.22 to 12.35 over the past decade. While the company's 10-year median is 9.12 vs. the industry median of 3.76, Showa System Engineering 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 3.76, based on 2,832 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. Showa System Engineering's current Pretax Margin % of 9.26% is 146.3% 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 Showa System Engineering and its competitors. For the Software industry, the median Pretax Margin % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa System Engineering's current Pretax Margin % is 9.26%, which is near median its own 10-year median of 9.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa System Engineering stock overvalued right now?
Based on GuruFocus' analysis, Showa System Engineering (TSE:4752) is currently considered Fairly Valued. The stock's GF Value™ is 円1,591.07, compared to a current price of 円1,583.00 — trading 0.5% below its estimated fair value. The current Pretax Margin % is 9.26%, which is near median its 10-year median of 9.12 and 146.3% above the Software industry median of 3.76. Showa System Engineering's overall GF Score™ is 76/100 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 Showa System Engineering (TSE:4752), the current Pretax Margin % is 9.26% 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 Showa System Engineering (TSE:4752) Overvalued in 2026?
Based on GuruFocus' analysis, Showa System Engineering stock appears to be undervalued.
The current stock price of 円1,583.00 is trading 0.5% below its estimated GF Value™ of 円1,591.07.
GuruFocus considers Showa System Engineering to be Fairly Valued.
Key valuation signals for TSE:4752:
Pretax Margin %: 9.26% (near median its 10-year median of 9.12)
GF Value™: 円1,591.07 vs. price of 円1,583.00 (0.5% below fair value)
Industry Position: 146.3% above the Software median (#713 of 2832)
No single metric tells the full story. See the TSE:4752 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Showa System Engineering Corp is engaged in development of information systems, system integration, consulting, software design, and development related to corporate computer systems. The company also provides business support services to various industries, such as administrative services for financial institutions, medical checkup reservations, and scanning services.
76GF Score
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