Lynas Rare EarthsASX:LYC +4.03%78 Pretax Margin % is 21.04% as of Dec. 2025, which is 16% above its 10-year median of 18.18. GuruFocus rates ASX:LYC with a GF Score™ of 78/100 and a GF Value™ of A$13.70 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 843 Metals & Mining companies, Lynas Rare Earths ranks better than 63.94% 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.
Lynas Rare Earths Pretax Margin % Related Terms
Lynas Rare Earths Pretax Margin % Historical Data
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The historical data trend for Lynas Rare Earths'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 Other Industrial Metals & Mining subindustry, Lynas Rare Earths'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.
Lynas Rare Earths Pretax Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lynas Rare Earths's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Lynas Rare Earths'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.
Lynas Rare Earths (ASX:LYC) has a Pretax Margin % of 21.04% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lynas Rare Earths and its competitors. This is 16% above median its historical median of 18.18. According to the industry distribution chart, Lynas Rare Earths ranks #304 out of 843 companies in the Metals & Mining industry, placing it in the top 36.1%.
Is Lynas Rare Earths' Pretax Margin % too high?
Lynas Rare Earths' current Pretax Margin % of 21.04% is 16% above median its 10-year median of 18.18. The Metals & Mining industry median Pretax Margin % is 4.83. Lynas Rare Earths' value of 21.04% is 335.6% above this industry median. Based on the distribution chart, Lynas Rare Earths ranks #304 out of 843 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Lynas Rare Earths has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lynas Rare Earths' Pretax Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Lynas Rare Earths ranks #304 out of 843 companies for Pretax Margin %. This puts Lynas Rare Earths in the upper half of its industry. The industry median Pretax Margin % is 4.83. Lynas Rare Earths' value of 21.04% is 335.6% above this benchmark. While the company's 10-year median is 18.18 vs. the industry median of 4.83, Lynas Rare Earths 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 Metals & Mining company?
The median Pretax Margin % among Metals & Mining companies is 4.83, based on 843 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. Lynas Rare Earths's current Pretax Margin % of 21.04% is 335.6% 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 Lynas Rare Earths and its competitors. For the Metals & Mining industry, the median Pretax Margin % is 4.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lynas Rare Earths's current Pretax Margin % is 21.04%, which is 16% above median its own 10-year median of 18.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lynas Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Lynas Rare Earths (ASX:LYC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$13.70, compared to a current price of A$19.34 — trading 41.2% above its estimated fair value. The current Pretax Margin % is 21.04%, which is 16% above median its 10-year median of 18.18 and 335.6% above the Metals & Mining industry median of 4.83. Lynas Rare Earths' overall GF Score™ is 78/100 with 3 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 Lynas Rare Earths (ASX:LYC), the current Pretax Margin % is 21.04% as of Dec. 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 Lynas Rare Earths (ASX:LYC) Overvalued in 2026?
Based on GuruFocus' analysis, Lynas Rare Earths stock appears to be overvalued.
The current stock price of A$19.34 is trading 41.2% above its estimated GF Value™ of A$13.70.
GuruFocus considers Lynas Rare Earths to be Significantly Overvalued.
Key valuation signals for ASX:LYC:
Pretax Margin %: 21.04% (16% above median its 10-year median of 18.18)
GF Value™: A$13.70 vs. price of A$19.34 (41.2% above fair value)
Industry Position: 335.6% above the Metals & Mining median (#304 of 843)
No single metric tells the full story. See the ASX:LYC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lynas is the largest rare-earth producer outside China. It owns the high-grade Mount Weld deposit in Western Australia and rare-earth processing facilities in Kalgoorlie and Malaysia. We estimate that Mount Weld is the world's lowest-cost producer of separated neodymium and praseodymium, light rare-earth materials, which are sold to customers in the form of neodymium-praseodymium oxide with a mine life exceeding 20 years. As of December 2025, Lynas is also the only producer of separated heavy rare-earth dysprosium and terbium outside China. The company is further expanding NdPr capacity while diversifying into producing additional separated rare-earth materials, including samarium. It also intends to move downstream into rare-earth metal and magnet production.
78GF Score
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