Texas Pacific LandTPL +2.28%86 Pretax Margin % is 77.51% as of Mar. 2026, which is 5% below its 10-year median of 82.01. GuruFocus rates TPL with a GF Score™ of 86/100 and a GF Value™ of $367.46 (Fairly Valued). The stock has 2 warning signs investors should review. Among 916 Oil & Gas companies, Texas Pacific Land ranks better than 97.05% on this metric.
The historical rank and industry rank for Texas Pacific Land's Pretax Margin % or its related term are showing as below:
TPL'
s Pretax Margin % Range Over the Past 10 Years
Min: 72.6 Med: 82.01 Max: 95.14
Current: 76.22
TPL's Pretax Margin % is ranked better than 97.05% of 916
companies
in the Oil & Gas industry
Industry Median: 5.165
vs TPL: 76.22
Texas Pacific Land (NYSE:TPL) 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.
Texas Pacific Land Pretax Margin % Related Terms
Texas Pacific Land Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Texas Pacific Land'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, Texas Pacific Land'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.
Texas Pacific Land Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land'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.
Texas Pacific Land (TPL) has a Pretax Margin % of 77.51% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Texas Pacific Land and its competitors. This is near median its historical median of 82.01. Over the past decade, Texas Pacific Land's Pretax Margin % has ranged from 72.60 to 95.14. According to the industry distribution chart, Texas Pacific Land ranks #27 out of 916 companies in the Oil & Gas industry, placing it in the top 2.9%.
Is Texas Pacific Land's Pretax Margin % too high?
Texas Pacific Land's current Pretax Margin % of 77.51% is near median its 10-year median of 82.01. Over the past 10 years, this metric has ranged from a low of 72.60 to a high of 95.14. The Oil & Gas industry median Pretax Margin % is 5.17. Texas Pacific Land's value of 77.51% is 1400.7% above this industry median. Based on the distribution chart, Texas Pacific Land ranks #27 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Pacific Land has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Pretax Margin % compare to EXE and EQT?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #27 out of 916 companies for Pretax Margin %. This places Texas Pacific Land in the top 3% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.17. Texas Pacific Land's value of 77.51% is 1400.7% above this benchmark. Historically, Texas Pacific Land's own Pretax Margin % has ranged from 72.60 to 95.14 over the past decade. While the company's 10-year median is 82.01 vs. the industry median of 5.17, Texas Pacific Land 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. Texas Pacific Land's current Pretax Margin % of 77.51% is 1400.7% 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 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 Texas Pacific Land 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. Texas Pacific Land's current Pretax Margin % is 77.51%, which is near median its own 10-year median of 82.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Pacific Land stock overvalued right now?
Based on GuruFocus' analysis, Texas Pacific Land (TPL) is currently considered Fairly Valued. The stock's GF Value™ is $367.46, compared to a current price of $386.15 — trading 5.1% above its estimated fair value. The current Pretax Margin % is 77.51%, which is near median its 10-year median of 82.01 and 1400.7% above the Oil & Gas industry median of 5.17. Texas Pacific Land's overall GF Score™ is 86/100 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 Texas Pacific Land (TPL), the current Pretax Margin % is 77.51% 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 Texas Pacific Land (TPL) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Pacific Land stock appears to be overvalued.
The current stock price of $386.15 is trading 5.1% above its estimated GF Value™ of $367.46.
GuruFocus considers Texas Pacific Land to be Fairly Valued.
Key valuation signals for TPL:
Pretax Margin %: 77.51% (near median its 10-year median of 82.01)
GF Value™: $367.46 vs. price of $386.15 (5.1% above fair value)
Industry Position: 1400.7% above the Oil & Gas median (#27 of 916)
No single metric tells the full story. See the TPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Texas Pacific Land Corp is mainly engaged in the sales and leases of land owned, retaining oil and gas royalties, and the overall management of the land owned. The group operates its business in two reportable segments: Land and Resource Management and Water Service and Operations. The Land and Resource Management segment, which generates maximum revenue, focuses on managing its several surface acres of land and its oil and gas royalty interests, principally concentrated in the Permian Basin. The revenue streams of this segment consist of royalties from oil and gas, revenues from easements and commercial leases, and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin.
86GF Score
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