Pakistan PetroleumKAR:PPL +1.50%78 Gross Margin % is 57.39% as of Mar. 2026, which is 4% below its 10-year median of 59.67. GuruFocus rates KAR:PPL with a GF Score™ of 78/100 and a GF Value™ of ₨79.27 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 867 Oil & Gas companies, Pakistan Petroleum ranks better than 86.27% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Pakistan Petroleum had a gross margin of 57.39% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Pakistan Petroleum Gross Margin % Related Terms
Pakistan Petroleum Gross Margin % Historical Data
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The historical data trend for Pakistan Petroleum's Gross 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.
KAR:PPL vs COP, EOG, OXY: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Pakistan Petroleum's Gross Margin %, along with its competitors' market caps and Gross 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.
Pakistan Petroleum Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Pakistan Petroleum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pakistan Petroleum's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Pakistan Petroleum (KAR:PPL) has a Gross Margin % of 57.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pakistan Petroleum and its competitors. This is near median its historical median of 59.67. Over the past decade, Pakistan Petroleum's Gross Margin % has ranged from 54.98 to 66.62. According to the industry distribution chart, Pakistan Petroleum ranks #119 out of 867 companies in the Oil & Gas industry, placing it in the top 13.7%.
Is Pakistan Petroleum's Gross Margin % too high?
Pakistan Petroleum's current Gross Margin % of 57.39% is near median its 10-year median of 59.67. Over the past 10 years, this metric has ranged from a low of 54.98 to a high of 66.62. The Oil & Gas industry median Gross Margin % is 25.70. Pakistan Petroleum's value of 57.39% is 123.3% above this industry median. Based on the distribution chart, Pakistan Petroleum ranks #119 out of 867 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Pakistan Petroleum has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pakistan Petroleum's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Pakistan Petroleum ranks #119 out of 867 companies for Gross Margin %. This places Pakistan Petroleum in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. Pakistan Petroleum's value of 57.39% is 123.3% above this benchmark. Historically, Pakistan Petroleum's own Gross Margin % has ranged from 54.98 to 66.62 over the past decade. While the company's 10-year median is 59.67 vs. the industry median of 25.70, Pakistan Petroleum 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 Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pakistan Petroleum's current Gross Margin % of 57.39% is 123.3% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Pakistan Petroleum and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pakistan Petroleum's current Gross Margin % is 57.39%, which is near median its own 10-year median of 59.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pakistan Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Pakistan Petroleum (KAR:PPL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨79.27, compared to a current price of ₨247.98 — trading 212.8% above its estimated fair value. The current Gross Margin % is 57.39%, which is near median its 10-year median of 59.67 and 123.3% above the Oil & Gas industry median of 25.70. Pakistan Petroleum's overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Pakistan Petroleum (KAR:PPL), the current Gross Margin % is 57.39% 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 Pakistan Petroleum (KAR:PPL) Overvalued in 2026?
Based on GuruFocus' analysis, Pakistan Petroleum stock appears to be overvalued.
The current stock price of ₨247.98 is trading 212.8% above its estimated GF Value™ of ₨79.27.
GuruFocus considers Pakistan Petroleum to be Significantly Overvalued.
Key valuation signals for KAR:PPL:
Gross Margin %: 57.39% (near median its 10-year median of 59.67)
GF Value™: ₨79.27 vs. price of ₨247.98 (212.8% above fair value)
Industry Position: 123.3% above the Oil & Gas median (#119 of 867)
No single metric tells the full story. See the KAR:PPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pakistan Petroleum Ltd, or PPL along with its subsidiaries is engaged in conducting exploration, prospecting, development, and production of oil and natural gas resources. The company is organised into one operating segment i.e. exploration, development and production of oil, gas and barytes. It operates several producing fields across the country at Sui, Adhi, Kandhkot, Chachar, Mazarani, Adam, Adam West, Shadadpur and Shahdadpur West.
78GF Score
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