Indra SistemasXMAD:IDR -0.99%92 Pretax Margin % is 8.33% as of Mar. 2026, which is 41% above its 10-year median of 5.89. GuruFocus rates XMAD:IDR with a GF Score™ of 92/100 and a GF Value™ of €28.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,825 Software companies, Indra Sistemas ranks better than 70.3% 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.
Indra Sistemas Pretax Margin % Related Terms
Indra Sistemas Pretax Margin % Historical Data
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The historical data trend for Indra Sistemas'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.
XMAD:IDR vs IBM, ACN, FISV: Pretax Margin % Comparison
For the Information Technology Services subindustry, Indra Sistemas'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.
Indra Sistemas Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Indra Sistemas's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Indra Sistemas'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.
Indra Sistemas (XMAD:IDR) has a Pretax Margin % of 8.33% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Indra Sistemas and its competitors. This is 41% above median its historical median of 5.89. According to the industry distribution chart, Indra Sistemas ranks #839 out of 2825 companies in the Software industry, placing it in the top 29.7%.
Is Indra Sistemas' Pretax Margin % too high?
Indra Sistemas' current Pretax Margin % of 8.33% is 41% above median its 10-year median of 5.89. The Software industry median Pretax Margin % is 3.53. Indra Sistemas' value of 8.33% is 136% above this industry median. Based on the distribution chart, Indra Sistemas ranks #839 out of 2825 companies in the Software industry, which is above the industry midpoint. Overall, Indra Sistemas has a GF Score™ of 92/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Indra Sistemas' Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Indra Sistemas ranks #839 out of 2825 companies for Pretax Margin %. This puts Indra Sistemas in the upper half of its industry. The industry median Pretax Margin % is 3.53. Indra Sistemas' value of 8.33% is 136% above this benchmark. While the company's 10-year median is 5.89 vs. the industry median of 3.53, Indra Sistemas 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 3.53, based on 2,825 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. Indra Sistemas's current Pretax Margin % of 8.33% is 136% 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 Indra Sistemas and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indra Sistemas's current Pretax Margin % is 8.33%, which is 41% above median its own 10-year median of 5.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indra Sistemas stock overvalued right now?
Based on GuruFocus' analysis, Indra Sistemas (XMAD:IDR) is currently considered Significantly Overvalued. The stock's GF Value™ is €28.25, compared to a current price of €46.92 — trading 66.1% above its estimated fair value. The current Pretax Margin % is 8.33%, which is 41% above median its 10-year median of 5.89 and 136% above the Software industry median of 3.53. Indra Sistemas' overall GF Score™ is 92/100 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 Indra Sistemas (XMAD:IDR), the current Pretax Margin % is 8.33% 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 Indra Sistemas (XMAD:IDR) Overvalued in 2026?
Based on GuruFocus' analysis, Indra Sistemas stock appears to be overvalued.
The current stock price of €46.92 is trading 66.1% above its estimated GF Value™ of €28.25.
GuruFocus considers Indra Sistemas to be Significantly Overvalued.
Key valuation signals for XMAD:IDR:
Pretax Margin %: 8.33% (41% above median its 10-year median of 5.89)
GF Value™: €28.25 vs. price of €46.92 (66.1% above fair value)
Industry Position: 136% above the Software median (#839 of 2825)
No single metric tells the full story. See the XMAD:IDR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indra Sistemas SA is a Spain-based provider of information technology offerings for finance, insurance, public administration, airports, defense, healthcare, media, telecom, security, energy, and infrastructure end markets. Its product capabilities include analytics, cloud computing, enterprise resource planning, networks and communications, electoral processes, bus technology, subway technology, and sustainability solutions. The firm generates revenue in Europe, Africa, the Middle East, the Americas, and Asia-Pacific.
92GF Score
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