Muromachi ChemicalsTSE:4885 +0.86%76 Pretax Margin % is 13.87% as of Nov. 2025, which is 164% above its 10-year median of 5.26. GuruFocus rates TSE:4885 with a GF Score™ of 76/100 and a GF Value™ of 円931.86 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,575 Chemicals companies, Muromachi Chemicals ranks better than 57.46% 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.
Muromachi Chemicals Pretax Margin % Related Terms
Muromachi Chemicals Pretax Margin % Historical Data
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The historical data trend for Muromachi Chemicals'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.
For the Chemicals subindustry, Muromachi Chemicals'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.
Muromachi Chemicals Pretax Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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.
Muromachi Chemicals (TSE:4885) has a Pretax Margin % of 13.87% as of Nov. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Muromachi Chemicals and its competitors. This is 164% above median its historical median of 5.26. According to the industry distribution chart, Muromachi Chemicals ranks #670 out of 1575 companies in the Chemicals industry, placing it in the top 42.5%.
Is Muromachi Chemicals' Pretax Margin % too high?
Muromachi Chemicals' current Pretax Margin % of 13.87% is 164% above median its 10-year median of 5.26. The Chemicals industry median Pretax Margin % is 5.35. Muromachi Chemicals' value of 13.87% is 159.3% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #670 out of 1575 companies in the Chemicals industry, which is above the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Pretax Margin % compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #670 out of 1575 companies for Pretax Margin %. This puts Muromachi Chemicals in the upper half of its industry. The industry median Pretax Margin % is 5.35. Muromachi Chemicals' value of 13.87% is 159.3% above this benchmark. While the company's 10-year median is 5.26 vs. the industry median of 5.35, Muromachi Chemicals 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 Chemicals company?
The median Pretax Margin % among Chemicals companies is 5.35, based on 1,575 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. Muromachi Chemicals's current Pretax Margin % of 13.87% is 159.3% 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 Muromachi Chemicals and its competitors. For the Chemicals industry, the median Pretax Margin % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current Pretax Margin % is 13.87%, which is 164% above median its own 10-year median of 5.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円931.86, compared to a current price of 円934.00 — trading 0.2% above its estimated fair value. The current Pretax Margin % is 13.87%, which is 164% above median its 10-year median of 5.26 and 159.3% above the Chemicals industry median of 5.35. Muromachi Chemicals' overall GF Score™ is 76/100 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 Muromachi Chemicals (TSE:4885), the current Pretax Margin % is 13.87% as of Nov. 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be overvalued.
The current stock price of 円934.00 is trading 0.2% above its estimated GF Value™ of 円931.86.
GuruFocus considers Muromachi Chemicals to be Fairly Valued.
Key valuation signals for TSE:4885:
Pretax Margin %: 13.87% (164% above median its 10-year median of 5.26)
GF Value™: 円931.86 vs. price of 円934.00 (0.2% above fair value)
Industry Position: 159.3% above the Chemicals median (#670 of 1575)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
76GF Score
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