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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.
Sitio Royalties Pretax Margin % Related Terms
Sitio Royalties Pretax Margin % Historical Data
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The historical data trend for Sitio Royalties'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.
STR.WS vs AMPY, CEI, EP: Pretax Margin % Comparison
For the Oil & Gas E&P subindustry, Sitio Royalties'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.
Sitio Royalties Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Sitio Royalties's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Sitio Royalties'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.
Sitio Royalties (STR.WS) has a Pretax Margin % of 25.14% as of Mar. 2022. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sitio Royalties and its competitors. This is 53% below median its historical median of 53.07. Over the past decade, Sitio Royalties' Pretax Margin % has ranged from 21.05 to 133.81.
Is Sitio Royalties' Pretax Margin % too high?
Sitio Royalties' current Pretax Margin % of 25.14% is 53% below median its 10-year median of 53.07. Over the past 10 years, this metric has ranged from a low of 21.05 to a high of 133.81. The Oil & Gas industry median Pretax Margin % is 6.26. Sitio Royalties' value of 25.14% is 301.6% above this industry median. Overall, Sitio Royalties has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sitio Royalties' Pretax Margin % compare to AMPY and CEI?
Sitio Royalties' Pretax Margin % of 25.14% can be compared against companies in the Oil & Gas industry. The industry median Pretax Margin % is 6.26. Sitio Royalties' value of 25.14% is 301.6% above this benchmark. Historically, Sitio Royalties' own Pretax Margin % has ranged from 21.05 to 133.81 over the past decade. While the company's 10-year median is 53.07 vs. the industry median of 6.26, Sitio Royalties 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 6.26, based on 922 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. Sitio Royalties's current Pretax Margin % of 25.14% is 301.6% 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 Sitio Royalties and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 6.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sitio Royalties's current Pretax Margin % is 25.14%, which is 53% below median its own 10-year median of 53.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sitio Royalties stock overvalued right now?
Sitio Royalties (STR.WS) has a current Pretax Margin % of 25.14%. The current Pretax Margin % is 25.14%, which is 53% below median its 10-year median of 53.07 and 301.6% above the Oil & Gas industry median of 6.26. Sitio Royalties' overall GF Score™ is 12/100 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 Sitio Royalties (STR.WS), the current Pretax Margin % is 25.14% as of Mar. 2022. 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.
Sitio Royalties Corp is a pure-play mineral and royalty company. The group is focused on large-scale consolidation of high-quality oil & gas mineral and royalty interests across premium basins. Sitio invests in mineral and royalty interests in the Permian and other productive U.S. oil basins.
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