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REDtone Digital BhdXKLS:0032 50 Pretax Margin % is 17.18% as of Jun. 2026, which is 40% above its 10-year median of 12.26. GuruFocus rates XKLS:0032 with a GF Score™ of 50/100 and a GF Value™ of RM0.38 (Fairly Valued). The stock has 8 warning signs investors should review. Among 368 Telecommunication Services companies, REDtone Digital Bhd ranks better than 61.41% on this metric.
The historical rank and industry rank for REDtone Digital Bhd's Pretax Margin % or its related term are showing as below:
XKLS:0032'
s Pretax Margin % Range Over the Past 10 Years
Min: -6.2 Med: 12.26 Max: 35.73
Current: 12.26
XKLS:0032's Pretax Margin % is ranked better than 61.41% of 368
companies
in the Telecommunication Services industry
Industry Median: 7.8
vs XKLS:0032: 12.26
REDtone Digital Bhd (XKLS:0032) 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.
REDtone Digital Bhd Pretax Margin % Related Terms
REDtone Digital Bhd Pretax Margin % Historical Data
* Premium members only.
The historical data trend for REDtone Digital Bhd'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.
XKLS:0032 vs VZ, TMUS, T: Pretax Margin % Comparison
For the Telecom Services subindustry, REDtone Digital Bhd'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.
REDtone Digital Bhd Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where REDtone Digital Bhd'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.
REDtone Digital Bhd (XKLS:0032) has a Pretax Margin % of 17.18% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on REDtone Digital Bhd and its competitors. This is 40% above median its historical median of 12.26. According to the industry distribution chart, REDtone Digital Bhd ranks #142 out of 368 companies in the Telecommunication Services industry, placing it in the top 38.6%.
Is REDtone Digital Bhd's Pretax Margin % too high?
REDtone Digital Bhd's current Pretax Margin % of 17.18% is 40% above median its 10-year median of 12.26. The Telecommunication Services industry median Pretax Margin % is 7.80. REDtone Digital Bhd's value of 17.18% is 120.3% above this industry median. Based on the distribution chart, REDtone Digital Bhd ranks #142 out of 368 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, REDtone Digital Bhd has a GF Score™ of 50/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does REDtone Digital Bhd's Pretax Margin % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, REDtone Digital Bhd ranks #142 out of 368 companies for Pretax Margin %. This puts REDtone Digital Bhd in the upper half of its industry. The industry median Pretax Margin % is 7.80. REDtone Digital Bhd's value of 17.18% is 120.3% above this benchmark. While the company's 10-year median is 12.26 vs. the industry median of 7.80, REDtone Digital Bhd 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 Telecommunication Services company?
The median Pretax Margin % among Telecommunication Services companies is 7.80, based on 368 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. REDtone Digital Bhd's current Pretax Margin % of 17.18% is 120.3% 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 REDtone Digital Bhd and its competitors. For the Telecommunication Services industry, the median Pretax Margin % is 7.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REDtone Digital Bhd's current Pretax Margin % is 17.18%, which is 40% above median its own 10-year median of 12.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REDtone Digital Bhd stock overvalued right now?
Based on GuruFocus' analysis, REDtone Digital Bhd (XKLS:0032) is currently considered Fairly Valued. The stock's GF Value™ is RM0.38, compared to a current price of RM0.40 — trading 5.3% above its estimated fair value. The current Pretax Margin % is 17.18%, which is 40% above median its 10-year median of 12.26 and 120.3% above the Telecommunication Services industry median of 7.80. REDtone Digital Bhd's overall GF Score™ is 50/100 with 8 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 REDtone Digital Bhd (XKLS:0032), the current Pretax Margin % is 17.18% as of Jun. 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 REDtone Digital Bhd (XKLS:0032) Overvalued in 2026?
Based on GuruFocus' analysis, REDtone Digital Bhd stock appears to be overvalued.
The current stock price of RM0.40 is trading 5.3% above its estimated GF Value™ of RM0.38.
GuruFocus considers REDtone Digital Bhd to be Fairly Valued.
Key valuation signals for XKLS:0032:
Pretax Margin %: 17.18% (40% above median its 10-year median of 12.26)
GF Value™: RM0.38 vs. price of RM0.40 (5.3% above fair value)
Industry Position: 120.3% above the Telecommunication Services median (#142 of 368)
No single metric tells the full story. See the XKLS:0032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REDtone Digital Bhd is a digital infrastructure and services provider operating through three segments: Telecommunication Services, offering data, managed network services, Cloud PBX, SIP Trunking, managed cybersecurity, and Starlink satellite connectivity; Managed Telecommunications Network Services, strengthening Malaysia's digital infrastructure in underserved and rural areas, supporting initiatives like Kampung Tanpa Wayar, Time-3, and JENDELA; and Cloud, Artificial Intelligence, and Internet of Things, providing cloud-first, AI-powered, and IoT-enabled solutions including AI Agents, smart farming, and SaaS CRM platforms. The company generates majority of its revenue from the Managed Telecommunications Network Services segment and operates in Malaysia.
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