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Verra MobilityVRRM -2.26%63 Pretax Margin % is 18.11% as of Mar. 2026, which is 84% above its 10-year median of 9.82. GuruFocus rates VRRM with a GF Score™ of 63/100 and a GF Value™ of $27.55 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 2,832 Software companies, Verra Mobility ranks better than 86.37% 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.
Verra Mobility Pretax Margin % Related Terms
Verra Mobility Pretax Margin % Historical Data
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The historical data trend for Verra Mobility'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.
VRRM vs NABL, EFOR, GDYN: Pretax Margin % Comparison
For the Information Technology Services subindustry, Verra Mobility'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.
Verra Mobility Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Verra Mobility's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Verra Mobility'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.
Verra Mobility (VRRM) has a Pretax Margin % of 18.11% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Verra Mobility and its competitors. This is 84% above median its historical median of 9.82. According to the industry distribution chart, Verra Mobility ranks #386 out of 2832 companies in the Software industry, placing it in the top 13.6%.
Is Verra Mobility's Pretax Margin % too high?
Verra Mobility's current Pretax Margin % of 18.11% is 84% above median its 10-year median of 9.82. The Software industry median Pretax Margin % is 3.61. Verra Mobility's value of 18.11% is 402.4% above this industry median. Based on the distribution chart, Verra Mobility ranks #386 out of 2832 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Verra Mobility has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Verra Mobility's Pretax Margin % compare to NABL and EFOR?
According to the Software industry distribution chart, Verra Mobility ranks #386 out of 2832 companies for Pretax Margin %. This places Verra Mobility in the top 14% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.61. Verra Mobility's value of 18.11% is 402.4% above this benchmark. While the company's 10-year median is 9.82 vs. the industry median of 3.61, Verra Mobility 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 3.61, 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. Verra Mobility's current Pretax Margin % of 18.11% is 402.4% 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 Verra Mobility and its competitors. For the Software industry, the median Pretax Margin % is 3.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verra Mobility's current Pretax Margin % is 18.11%, which is 84% above median its own 10-year median of 9.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verra Mobility stock overvalued right now?
Based on GuruFocus' analysis, Verra Mobility (VRRM) is currently considered Possible Value Trap. The stock's GF Value™ is $27.55, compared to a current price of $3.90 — trading 85.8% below its estimated fair value. The current Pretax Margin % is 18.11%, which is 84% above median its 10-year median of 9.82 and 402.4% above the Software industry median of 3.61. Verra Mobility's overall GF Score™ is 63/100 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 Verra Mobility (VRRM), the current Pretax Margin % is 18.11% 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 Verra Mobility (VRRM) Overvalued in 2026?
Based on GuruFocus' analysis, Verra Mobility stock appears to be undervalued.
The current stock price of $3.90 is trading 85.8% below its estimated GF Value™ of $27.55.
GuruFocus considers Verra Mobility to be Possible Value Trap.
Key valuation signals for VRRM:
Pretax Margin %: 18.11% (84% above median its 10-year median of 9.82)
GF Value™: $27.55 vs. price of $3.90 (85.8% below fair value)
Industry Position: 402.4% above the Software median (#386 of 2832)
No single metric tells the full story. See the VRRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Verra Mobility Corp is a provider of smart mobility technology solutions, principally operating throughout the United States, Australia, Europe, and Canada. The company develops and uses technology and data intelligence to help make transportation safer and easier. It operates in three reportable segments: Commercial Services, Government Solutions, and Parking Solutions. Maximum revenue is generated from the Commercial Services segment, which offers toll and violation management solutions and title and registration services for commercial fleet customers, including RACs and FMCs in North America. In Europe, it provides tolling and violations processing services.
63GF Score
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