Texas Pacific LandTPL -1.88%90 Gross Margin % is 88.04% as of Mar. 2026, which is 6% below its 10-year median of 93.68. GuruFocus rates TPL with a GF Score™ of 90/100 and a GF Value™ of $369.98 (Fairly Valued). The stock has 2 warning signs investors should review. Among 871 Oil & Gas companies, Texas Pacific Land ranks better than 97.13% on this metric.
The historical rank and industry rank for Texas Pacific Land's Gross Margin % or its related term are showing as below:
TPL'
s Gross Margin % Range Over the Past 10 Years
Min: 85.46 Med: 93.68 Max: 99.93
Current: 85.54
During the past 13 years, the highestGross Margin % of Texas Pacific Land was 99.93%. The lowest was 85.46%. And the median was 93.68%.
TPL's Gross Margin % is ranked better than 97.13% of 871
companies
in the Oil & Gas industry
Industry Median: 25.7
vs TPL: 85.54
Texas Pacific Land had a gross margin of 88.04% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Texas Pacific Land was -1.00% per year.
Texas Pacific Land (NYSE:TPL) Gross Margin % Explanation
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
Texas Pacific Land had a gross margin of 88.04% 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.
Texas Pacific Land Gross Margin % Related Terms
Texas Pacific Land Gross Margin % Historical Data
* Premium members only.
The historical data trend for Texas Pacific Land'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, Texas Pacific Land'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.
Texas Pacific Land Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land'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.
Texas Pacific Land (TPL) has a Gross Margin % of 88.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Texas Pacific Land and its competitors. This is near median its historical median of 93.68. Over the past decade, Texas Pacific Land's Gross Margin % has ranged from 85.46 to 99.93. According to the industry distribution chart, Texas Pacific Land ranks #25 out of 871 companies in the Oil & Gas industry, placing it in the top 2.9%.
Is Texas Pacific Land's Gross Margin % too high?
Texas Pacific Land's current Gross Margin % of 88.04% is near median its 10-year median of 93.68. Over the past 10 years, this metric has ranged from a low of 85.46 to a high of 99.93. The Oil & Gas industry median Gross Margin % is 25.70. Texas Pacific Land's value of 88.04% is 242.6% above this industry median. Based on the distribution chart, Texas Pacific Land ranks #25 out of 871 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Pacific Land has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Gross Margin % compare to EQT and EXE?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #25 out of 871 companies for Gross Margin %. This places Texas Pacific Land in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. Texas Pacific Land's value of 88.04% is 242.6% above this benchmark. Historically, Texas Pacific Land's own Gross Margin % has ranged from 85.46 to 99.93 over the past decade. While the company's 10-year median is 93.68 vs. the industry median of 25.70, Texas Pacific Land 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 871 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. Texas Pacific Land's current Gross Margin % of 88.04% is 242.6% 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 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 Texas Pacific Land 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. Texas Pacific Land's current Gross Margin % is 88.04%, which is near median its own 10-year median of 93.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Pacific Land stock overvalued right now?
Based on GuruFocus' analysis, Texas Pacific Land (TPL) is currently considered Fairly Valued. The stock's GF Value™ is $369.98, compared to a current price of $407.20 — trading 10.1% above its estimated fair value. The current Gross Margin % is 88.04%, which is near median its 10-year median of 93.68 and 242.6% above the Oil & Gas industry median of 25.70. Texas Pacific Land's overall GF Score™ is 90/100 with 2 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 Texas Pacific Land (TPL), the current Gross Margin % is 88.04% 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 Texas Pacific Land (TPL) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Pacific Land stock appears to be overvalued.
The current stock price of $407.20 is trading 10.1% above its estimated GF Value™ of $369.98.
GuruFocus considers Texas Pacific Land to be Fairly Valued.
Key valuation signals for TPL:
Gross Margin %: 88.04% (near median its 10-year median of 93.68)
GF Value™: $369.98 vs. price of $407.20 (10.1% above fair value)
Industry Position: 242.6% above the Oil & Gas median (#25 of 871)
No single metric tells the full story. See the TPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Texas Pacific Land Corp is mainly engaged in the sales and leases of land owned, retaining oil and gas royalties, and the overall management of the land owned. The group operates its business in two reportable segments: Land and Resource Management and Water Service and Operations. The Land and Resource Management segment, which generates maximum revenue, focuses on managing its several surface acres of land and its oil and gas royalty interests, principally concentrated in the Permian Basin. The revenue streams of this segment consist of royalties from oil and gas, revenues from easements and commercial leases, and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin.
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