Abu Dhabi National Energy Co PJSC (ADX:TAQA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Abu Dhabi National Energy Co PJSC had a gross margin of 23.20% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Abu Dhabi National Energy Co PJSC Gross Margin % Related Terms
Abu Dhabi National Energy Co PJSC Gross 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.
Abu Dhabi National Energy Co PJSC Gross Margin % Chart
For the Utilities - Diversified subindustry, Abu Dhabi National Energy Co PJSC's Gross Margin %, along with its competitors' market caps and Gross 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.
Abu Dhabi National Energy Co PJSC Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Abu Dhabi National Energy Co PJSC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Abu Dhabi National Energy Co PJSC's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Abu Dhabi National Energy Co PJSC (ADX:TAQA) has a Gross Margin % of 23.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Abu Dhabi National Energy Co PJSC and its competitors. This is near median its historical median of 23.92. According to the industry distribution chart, Abu Dhabi National Energy Co PJSC ranks #319 out of 489 companies in the Utilities - Regulated industry, placing it in the top 65.2%.
Is Abu Dhabi National Energy Co PJSC's Gross Margin % too high?
Abu Dhabi National Energy Co PJSC's current Gross Margin % of 23.20% is near median its 10-year median of 23.92. The Utilities - Regulated industry median Gross Margin % is 30.95. Abu Dhabi National Energy Co PJSC's value of 23.20% is 25% below this industry median. Based on the distribution chart, Abu Dhabi National Energy Co PJSC ranks #319 out of 489 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Abu Dhabi National Energy Co PJSC has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abu Dhabi National Energy Co PJSC's Gross Margin % compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, Abu Dhabi National Energy Co PJSC ranks #319 out of 489 companies for Gross Margin %. This places Abu Dhabi National Energy Co PJSC in the lower half of its industry. The industry median Gross Margin % is 30.95. Abu Dhabi National Energy Co PJSC's value of 23.20% is 25% below this benchmark. While the company's 10-year median is 23.92 vs. the industry median of 30.95, Abu Dhabi National Energy Co PJSC 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 Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.95, based on 489 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abu Dhabi National Energy Co PJSC's current Gross Margin % of 23.20% is 25% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Abu Dhabi National Energy Co PJSC and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abu Dhabi National Energy Co PJSC's current Gross Margin % is 23.20%, which is near median its own 10-year median of 23.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abu Dhabi National Energy Co PJSC stock overvalued right now?
Based on GuruFocus' analysis, Abu Dhabi National Energy Co PJSC (ADX:TAQA) is currently considered Modestly Undervalued. The stock's GF Value™ is د.إ3.42, compared to a current price of د.إ2.66 — trading 22.2% below its estimated fair value. The current Gross Margin % is 23.20%, which is near median its 10-year median of 23.92 and 25% below the Utilities - Regulated industry median of 30.95. Abu Dhabi National Energy Co PJSC's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Abu Dhabi National Energy Co PJSC (ADX:TAQA), the current Gross Margin % is 23.20% 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 Abu Dhabi National Energy Co PJSC (ADX:TAQA) Overvalued in 2026?
Based on GuruFocus' analysis, Abu Dhabi National Energy Co PJSC stock appears to be undervalued.
The current stock price of د.إ2.66 is trading 22.2% below its estimated GF Value™ of د.إ3.42.
GuruFocus considers Abu Dhabi National Energy Co PJSC to be Modestly Undervalued.
Key valuation signals for ADX:TAQA:
Gross Margin %: 23.20% (near median its 10-year median of 23.92)
GF Value™: د.إ3.42 vs. price of د.إ2.66 (22.2% below fair value)
Industry Position: 25% below the Utilities - Regulated median (#319 of 489)
No single metric tells the full story. See the ADX:TAQA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abu Dhabi National Energy Co PJSC Business Description
Abu Dhabi National Energy Co PJSC which is majority-owned by the Abu Dhabi government is a fully integrated energy provider with operations in nine markets around the world. Its segment includes Power and Water Generation segment, Power and Water Transmission segment, Power and Water Distribution segment, Oil and Gas segment, and Water Solutions Segment. The company generates the majority of its revenue from Power and Water Distribution segment, which is engaged in distribution of water and electricity from the generation and desalination plants in the UAE.. Geographically the company generates the majority of its revenue from UAE.
81GF Score
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