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TXO Partners LPTXO -2.54%61 Gross Margin % is 56.64% as of Jun. 2026, which is 86% above its 10-year median of 30.44. GuruFocus rates TXO with a GF Score™ of 61/100 and a GF Value™ of $13.45 (Fairly Valued). The stock has 8 warning signs investors should review. Among 880 Oil & Gas companies, TXO Partners LP ranks better than 50.45% 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
TXO Partners LP had a gross margin of 56.64% for the quarter that ended in Jun. 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.
TXO Partners LP Gross Margin % Related Terms
TXO Partners LP Gross Margin % Historical Data
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The historical data trend for TXO Partners LP'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, TXO Partners LP'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.
TXO Partners LP Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, TXO Partners LP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TXO Partners LP'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.
TXO Partners LP (TXO) has a Gross Margin % of 56.64% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TXO Partners LP and its competitors. This is 86% above median its historical median of 30.44. Over the past decade, TXO Partners LP's Gross Margin % has ranged from 15.90 to 52.20. According to the industry distribution chart, TXO Partners LP ranks #436 out of 880 companies in the Oil & Gas industry, placing it in the top 49.5%.
Is TXO Partners LP's Gross Margin % too high?
TXO Partners LP's current Gross Margin % of 56.64% is 86% above median its 10-year median of 30.44. Over the past 10 years, this metric has ranged from a low of 15.90 to a high of 52.20. The Oil & Gas industry median Gross Margin % is 26.76. TXO Partners LP's value of 56.64% is 111.7% above this industry median. Based on the distribution chart, TXO Partners LP ranks #436 out of 880 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, TXO Partners LP has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TXO Partners LP's Gross Margin % compare to REPX and VTS?
According to the Oil & Gas industry distribution chart, TXO Partners LP ranks #436 out of 880 companies for Gross Margin %. This puts TXO Partners LP in the upper half of its industry. The industry median Gross Margin % is 26.76. TXO Partners LP's value of 56.64% is 111.7% above this benchmark. Historically, TXO Partners LP's own Gross Margin % has ranged from 15.90 to 52.20 over the past decade. While the company's 10-year median is 30.44 vs. the industry median of 26.76, TXO Partners LP 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 26.76, based on 880 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. TXO Partners LP's current Gross Margin % of 56.64% is 111.7% 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 TXO Partners LP and its competitors. For the Oil & Gas industry, the median Gross Margin % is 26.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TXO Partners LP's current Gross Margin % is 56.64%, which is 86% above median its own 10-year median of 30.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TXO Partners LP stock overvalued right now?
Based on GuruFocus' analysis, TXO Partners LP (TXO) is currently considered Fairly Valued. The stock's GF Value™ is $13.45, compared to a current price of $13.81 — trading 2.7% above its estimated fair value. The current Gross Margin % is 56.64%, which is 86% above median its 10-year median of 30.44 and 111.7% above the Oil & Gas industry median of 26.76. TXO Partners LP's overall GF Score™ is 61/100 with 8 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 TXO Partners LP (TXO), the current Gross Margin % is 56.64% as of Jun. 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 TXO Partners LP (TXO) Overvalued in 2026?
Based on GuruFocus' analysis, TXO Partners LP stock appears to be overvalued.
The current stock price of $13.81 is trading 2.7% above its estimated GF Value™ of $13.45.
GuruFocus considers TXO Partners LP to be Fairly Valued.
Key valuation signals for TXO:
Gross Margin %: 56.64% (86% above median its 10-year median of 30.44)
GF Value™: $13.45 vs. price of $13.81 (2.7% above fair value)
Industry Position: 111.7% above the Oil & Gas median (#436 of 880)
No single metric tells the full story. See the TXO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TXO Partners LP is focused on the acquisition, development, optimization, and exploitation of oil, natural gas, and natural gas liquid reserves in North America. Its operations focus on enhancing the development and operation of producing properties through its concentration on efficiency and optimizing exploitation of current wells.
61GF Score
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