Permian ResourcesMEX:PR 71 Gross Margin % is 44.54% as of Mar. 2026, which is 3% below its 10-year median of 45.96. GuruFocus rates MEX:PR with a GF Score™ of 71/100 and a GF Value™ of MXN226.81 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 867 Oil & Gas companies, Permian Resources ranks better than 68.86% 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
Permian Resources had a gross margin of 44.54% 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.
Permian Resources Gross Margin % Related Terms
Permian Resources Gross Margin % Historical Data
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The historical data trend for Permian Resources'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.
For the Oil & Gas E&P subindustry, Permian Resources'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.
Permian Resources Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Permian Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Permian Resources'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.
Permian Resources (MEX:PR) has a Gross Margin % of 44.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Permian Resources and its competitors. This is near median its historical median of 45.96. According to the industry distribution chart, Permian Resources ranks #270 out of 867 companies in the Oil & Gas industry, placing it in the top 31.1%.
Is Permian Resources' Gross Margin % too high?
Permian Resources' current Gross Margin % of 44.54% is near median its 10-year median of 45.96. The Oil & Gas industry median Gross Margin % is 25.70. Permian Resources' value of 44.54% is 73.3% above this industry median. Based on the distribution chart, Permian Resources ranks #270 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Permian Resources has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Permian Resources' Gross Margin % compare to OVV and APA?
According to the Oil & Gas industry distribution chart, Permian Resources ranks #270 out of 867 companies for Gross Margin %. This puts Permian Resources in the upper half of its industry. The industry median Gross Margin % is 25.70. Permian Resources' value of 44.54% is 73.3% above this benchmark. While the company's 10-year median is 45.96 vs. the industry median of 25.70, Permian Resources 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. Permian Resources's current Gross Margin % of 44.54% is 73.3% 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 Permian Resources 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. Permian Resources's current Gross Margin % is 44.54%, which is near median its own 10-year median of 45.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Permian Resources stock overvalued right now?
Based on GuruFocus' analysis, Permian Resources (MEX:PR) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN226.81, compared to a current price of MXN331.07 — trading 46% above its estimated fair value. The current Gross Margin % is 44.54%, which is near median its 10-year median of 45.96 and 73.3% above the Oil & Gas industry median of 25.70. Permian Resources' overall GF Score™ is 71/100 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 Permian Resources (MEX:PR), the current Gross Margin % is 44.54% 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 Permian Resources (MEX:PR) Overvalued in 2026?
Based on GuruFocus' analysis, Permian Resources stock appears to be overvalued.
The current stock price of MXN331.07 is trading 46% above its estimated GF Value™ of MXN226.81.
GuruFocus considers Permian Resources to be Significantly Overvalued.
Key valuation signals for MEX:PR:
Gross Margin %: 44.54% (near median its 10-year median of 45.96)
GF Value™: MXN226.81 vs. price of MXN331.07 (46% above fair value)
Industry Position: 73.3% above the Oil & Gas median (#270 of 867)
No single metric tells the full story. See the MEX:PR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Permian Resources Corp is an independent oil and natural gas company focused on generating outsized returns to stakeholders through the responsible acquisition, optimization, and development of oil and liquids-rich natural gas assets. The Company's assets and operations are concentrated in the core of the Permian Basin, and its properties consist of large, contiguous acreage blocks located in West Texas and New Mexico.
71GF Score
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