BPBP -3.74%59 Pretax Margin % is 14.09% as of Mar. 2026, which is 206% above its 10-year median of 4.61. GuruFocus rates BP with a GF Score™ of 59/100 and a GF Value™ of $35.50 (Fairly Valued). The stock has 6 warning signs investors should review. Among 916 Oil & Gas companies, BP ranks better than 52.73% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. BP's Pre-Tax Income for the
three
months ended in Mar. 2026 was $7,365 Mil. BP's Revenue for the
three
months ended in Mar. 2026 was $52,255 Mil. Therefore, BP's pretax margin for the quarter that ended in Mar. 2026 was 14.09%.
The historical rank and industry rank for BP's Pretax Margin % or its related term are showing as below:
BP'
s Pretax Margin % Range Over the Past 10 Years
Min: -23.49 Med: 4.61 Max: 11.3
Current: 6.16
BP's Pretax Margin % is ranked better than 52.73% of 916
companies
in the Oil & Gas industry
Industry Median: 5.165
vs BP: 6.16
BP (NYSE:BP) Pretax Margin % Explanation
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.
BP Pretax Margin % Related Terms
BP Pretax Margin % Historical Data
* Premium members only.
The historical data trend for BP'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 Oil & Gas Integrated subindustry, BP'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.
BP Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, BP's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where BP'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.
BP (BP) has a Pretax Margin % of 14.09% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on BP and its competitors. This is 206% above median its historical median of 4.61. According to the industry distribution chart, BP ranks #433 out of 916 companies in the Oil & Gas industry, placing it in the top 47.3%.
Is BP's Pretax Margin % too high?
BP's current Pretax Margin % of 14.09% is 206% above median its 10-year median of 4.61. The Oil & Gas industry median Pretax Margin % is 5.17. BP's value of 14.09% is 172.8% above this industry median. Based on the distribution chart, BP ranks #433 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, BP has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BP's Pretax Margin % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, BP ranks #433 out of 916 companies for Pretax Margin %. This puts BP in the upper half of its industry. The industry median Pretax Margin % is 5.17. BP's value of 14.09% is 172.8% above this benchmark. While the company's 10-year median is 4.61 vs. the industry median of 5.17, BP 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 an Oil & Gas company?
The median Pretax Margin % among Oil & Gas companies is 5.17, based on 916 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. BP's current Pretax Margin % of 14.09% is 172.8% 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 BP and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 5.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BP's current Pretax Margin % is 14.09%, which is 206% above median its own 10-year median of 4.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BP stock overvalued right now?
Based on GuruFocus' analysis, BP (BP) is currently considered Fairly Valued. The stock's GF Value™ is $35.50, compared to a current price of $37.86 — trading 6.6% above its estimated fair value. The current Pretax Margin % is 14.09%, which is 206% above median its 10-year median of 4.61 and 172.8% above the Oil & Gas industry median of 5.17. BP's overall GF Score™ is 59/100 with 6 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 BP (BP), the current Pretax Margin % is 14.09% 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 BP (BP) Overvalued in 2026?
Based on GuruFocus' analysis, BP stock appears to be overvalued.
The current stock price of $37.86 is trading 6.6% above its estimated GF Value™ of $35.50.
GuruFocus considers BP to be Fairly Valued.
Key valuation signals for BP:
Pretax Margin %: 14.09% (206% above median its 10-year median of 4.61)
GF Value™: $35.50 vs. price of $37.86 (6.6% above fair value)
Industry Position: 172.8% above the Oil & Gas median (#433 of 916)
No single metric tells the full story. See the BP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BP is an integrated energy company that explores for, produces, and refines oil and gas around the world. In 2025, it produced 1.2 million barrels of liquids and 6.5 billion cubic feet of natural gas per day. At the end of 2025, proved hydrocarbon reserves stood at 6.2 billion barrels of oil equivalent, 56% of which are liquids. The company operates refineries with a total crude distillation capacity of 1.56 million barrels of oil per day.
59GF Score
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