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Permian ResourcesLTS:0HVD -0.59%70 Pretax Margin % is 4.60% as of Mar. 2026, which is 83% below its 10-year median of 26.86. GuruFocus rates LTS:0HVD with a GF Score™ of 70/100 and a GF Value™ of $13.26 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 917 Oil & Gas companies, Permian Resources ranks better than 76.23% on this metric.
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.
Permian Resources Pretax Margin % Related Terms
Permian Resources Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Permian Resources'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.
LTS:0HVD vs OVV, APA, AR: Pretax Margin % Comparison
For the Oil & Gas E&P subindustry, Permian Resources'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.
Permian Resources Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Permian Resources's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Permian Resources'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.
Permian Resources (LTS:0HVD) has a Pretax Margin % of 4.60% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Permian Resources and its competitors. This is 83% below median its historical median of 26.86. According to the industry distribution chart, Permian Resources ranks #218 out of 917 companies in the Oil & Gas industry, placing it in the top 23.8%.
Is Permian Resources' Pretax Margin % too high?
Permian Resources' current Pretax Margin % of 4.60% is 83% below median its 10-year median of 26.86. The Oil & Gas industry median Pretax Margin % is 5.21. Permian Resources' value of 4.60% is 11.7% below this industry median. Based on the distribution chart, Permian Resources ranks #218 out of 917 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Permian Resources has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Permian Resources' Pretax Margin % compare to OVV and APA?
According to the Oil & Gas industry distribution chart, Permian Resources ranks #218 out of 917 companies for Pretax Margin %. This places Permian Resources in the top 24% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.21. Permian Resources' value of 4.60% is 11.7% below this benchmark. While the company's 10-year median is 26.86 vs. the industry median of 5.21, Permian Resources has consistently been below 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 5.21, based on 917 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. Permian Resources's current Pretax Margin % of 4.60% is 11.7% below 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 Permian Resources and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Permian Resources's current Pretax Margin % is 4.60%, which is 83% below median its own 10-year median of 26.86. 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 (LTS:0HVD) is currently considered Significantly Overvalued. The stock's GF Value™ is $13.26, compared to a current price of $19.53 — trading 47.3% above its estimated fair value. The current Pretax Margin % is 4.60%, which is 83% below median its 10-year median of 26.86 and 11.7% below the Oil & Gas industry median of 5.21. Permian Resources' overall GF Score™ is 70/100 with 4 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 Permian Resources (LTS:0HVD), the current Pretax Margin % is 4.60% 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 (LTS:0HVD) Overvalued in 2026?
Based on GuruFocus' analysis, Permian Resources stock appears to be overvalued.
The current stock price of $19.53 is trading 47.3% above its estimated GF Value™ of $13.26.
GuruFocus considers Permian Resources to be Significantly Overvalued.
Key valuation signals for LTS:0HVD:
Pretax Margin %: 4.60% (83% below median its 10-year median of 26.86)
GF Value™: $13.26 vs. price of $19.53 (47.3% above fair value)
Industry Position: 11.7% below the Oil & Gas median (#218 of 917)
No single metric tells the full story. See the LTS:0HVD 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.
70GF Score
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