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Western Midstream Partners LPWES +1.58%85 Pretax Margin % is 34.33% as of Jun. 2026, which is 7% above its 10-year median of 32.21. GuruFocus rates WES with a GF Score™ of 85/100 and a GF Value™ of $43.92 (Fairly Valued). The stock has 9 warning signs investors should review. Among 924 Oil & Gas companies, Western Midstream Partners LP ranks better than 86.04% on this metric.
Western Midstream Partners LP (NYSE:WES) 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.
Western Midstream Partners LP Pretax Margin % Related Terms
Western Midstream Partners LP Pretax Margin % Historical Data
* 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.
Western Midstream Partners LP Pretax Margin % Chart
For the Oil & Gas Midstream subindustry, Western Midstream Partners LP'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.
Western Midstream Partners LP Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Western Midstream Partners LP's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Western Midstream Partners LP'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.
Western Midstream Partners LP (WES) has a Pretax Margin % of 34.33% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Western Midstream Partners LP and its competitors. This is near median its historical median of 32.21. Over the past decade, Western Midstream Partners LP's Pretax Margin % has ranged from 18.86 to 45.19. According to the industry distribution chart, Western Midstream Partners LP ranks #129 out of 924 companies in the Oil & Gas industry, placing it in the top 14%.
Is Western Midstream Partners LP's Pretax Margin % too high?
Western Midstream Partners LP's current Pretax Margin % of 34.33% is near median its 10-year median of 32.21. Over the past 10 years, this metric has ranged from a low of 18.86 to a high of 45.19. The Oil & Gas industry median Pretax Margin % is 5.44. Western Midstream Partners LP's value of 34.33% is 531.1% above this industry median. Based on the distribution chart, Western Midstream Partners LP ranks #129 out of 924 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Western Midstream Partners LP has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Western Midstream Partners LP's Pretax Margin % compare to PAA and DTM?
According to the Oil & Gas industry distribution chart, Western Midstream Partners LP ranks #129 out of 924 companies for Pretax Margin %. This places Western Midstream Partners LP in the top 14% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.44. Western Midstream Partners LP's value of 34.33% is 531.1% above this benchmark. Historically, Western Midstream Partners LP's own Pretax Margin % has ranged from 18.86 to 45.19 over the past decade. While the company's 10-year median is 32.21 vs. the industry median of 5.44, Western Midstream Partners LP 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 5.44, based on 924 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. Western Midstream Partners LP's current Pretax Margin % of 34.33% is 531.1% 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 Western Midstream Partners LP and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 5.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Midstream Partners LP's current Pretax Margin % is 34.33%, which is near median its own 10-year median of 32.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Midstream Partners LP stock overvalued right now?
Based on GuruFocus' analysis, Western Midstream Partners LP (WES) is currently considered Fairly Valued. The stock's GF Value™ is $43.92, compared to a current price of $46.88 — trading 6.7% above its estimated fair value. The current Pretax Margin % is 34.33%, which is near median its 10-year median of 32.21 and 531.1% above the Oil & Gas industry median of 5.44. Western Midstream Partners LP's overall GF Score™ is 85/100 with 9 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 Western Midstream Partners LP (WES), the current Pretax Margin % is 34.33% 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 Western Midstream Partners LP (WES) Overvalued in 2026?
Based on GuruFocus' analysis, Western Midstream Partners LP stock appears to be overvalued.
The current stock price of $46.88 is trading 6.7% above its estimated GF Value™ of $43.92.
GuruFocus considers Western Midstream Partners LP to be Fairly Valued.
Key valuation signals for WES:
Pretax Margin %: 34.33% (near median its 10-year median of 32.21)
GF Value™: $43.92 vs. price of $46.88 (6.7% above fair value)
Industry Position: 531.1% above the Oil & Gas median (#129 of 924)
No single metric tells the full story. See the WES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Midstream Partners LP is a USA-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma) and Texas.
85GF Score
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