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Magnolia Oil & GasMGY +3.35%93 Pretax Margin % is 48.54% as of Jun. 2026, which is 30% above its 10-year median of 37.48. GuruFocus rates MGY with a GF Score™ of 93/100 and a GF Value™ of $29.06 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 929 Oil & Gas companies, Magnolia Oil & Gas ranks better than 88.81% on this metric.
Magnolia Oil & Gas (NYSE:MGY) 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.
Magnolia Oil & Gas Pretax Margin % Related Terms
Magnolia Oil & Gas Pretax Margin % Historical Data
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The historical data trend for Magnolia Oil & Gas'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 E&P subindustry, Magnolia Oil & Gas'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.
Magnolia Oil & Gas Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Magnolia Oil & Gas's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Magnolia Oil & Gas'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.
Magnolia Oil & Gas (MGY) has a Pretax Margin % of 48.54% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Magnolia Oil & Gas and its competitors. This is 30% above median its historical median of 37.48. According to the industry distribution chart, Magnolia Oil & Gas ranks #104 out of 929 companies in the Oil & Gas industry, placing it in the top 11.2%.
Is Magnolia Oil & Gas' Pretax Margin % too high?
Magnolia Oil & Gas' current Pretax Margin % of 48.54% is 30% above median its 10-year median of 37.48. The Oil & Gas industry median Pretax Margin % is 5.64. Magnolia Oil & Gas' value of 48.54% is 760.6% above this industry median. Based on the distribution chart, Magnolia Oil & Gas ranks #104 out of 929 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Magnolia Oil & Gas has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Magnolia Oil & Gas' Pretax Margin % compare to MUR and MTDR?
According to the Oil & Gas industry distribution chart, Magnolia Oil & Gas ranks #104 out of 929 companies for Pretax Margin %. This places Magnolia Oil & Gas in the top 11% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.64. Magnolia Oil & Gas' value of 48.54% is 760.6% above this benchmark. While the company's 10-year median is 37.48 vs. the industry median of 5.64, Magnolia Oil & Gas 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 5.64, based on 929 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. Magnolia Oil & Gas's current Pretax Margin % of 48.54% is 760.6% 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 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 Magnolia Oil & Gas and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 5.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magnolia Oil & Gas's current Pretax Margin % is 48.54%, which is 30% above median its own 10-year median of 37.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnolia Oil & Gas stock overvalued right now?
Based on GuruFocus' analysis, Magnolia Oil & Gas (MGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $29.06, compared to a current price of $25.92 — trading 10.8% below its estimated fair value. The current Pretax Margin % is 48.54%, which is 30% above median its 10-year median of 37.48 and 760.6% above the Oil & Gas industry median of 5.64. Magnolia Oil & Gas' overall GF Score™ is 93/100 with 2 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 Magnolia Oil & Gas (MGY), the current Pretax Margin % is 48.54% 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 Magnolia Oil & Gas (MGY) Overvalued in 2026?
Based on GuruFocus' analysis, Magnolia Oil & Gas stock appears to be undervalued.
The current stock price of $25.92 is trading 10.8% below its estimated GF Value™ of $29.06.
GuruFocus considers Magnolia Oil & Gas to be Modestly Undervalued.
Key valuation signals for MGY:
Pretax Margin %: 48.54% (30% above median its 10-year median of 37.48)
GF Value™: $29.06 vs. price of $25.92 (10.8% below fair value)
Industry Position: 760.6% above the Oil & Gas median (#104 of 929)
No single metric tells the full story. See the MGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magnolia Oil & Gas Corp is an independent oil and natural gas company engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids (NGL) reserves. The company's oil and natural gas properties are located in Karnes County and the Giddings area of South Texas, where it targets the Eagle Ford Shale and Austin Chalk formations. It focuses on generating value for shareholders by delivering steady, moderate annual production growth resulting from its capital spending philosophy. The company operates in only one segment and derives the majority of its revenue from the sale of crude oil, natural gas, and natural gas liquids (NGLs).
93GF Score
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