American Electric Power CoAEP +0.99%78 Gross Margin % is 57.99% as of Mar. 2026, which is 2% below its 10-year median of 59.01. GuruFocus rates AEP with a GF Score™ of 78/100 and a GF Value™ of $110.98 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 489 Utilities - Regulated companies, American Electric Power Co ranks better than 86.91% on this metric.
American Electric Power Co (NAS:AEP) 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
American Electric Power Co had a gross margin of 57.99% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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.
American Electric Power Co Gross Margin % Related Terms
American Electric Power Co 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.
For the Utilities - Regulated Electric subindustry, American Electric Power Co'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.
American Electric Power Co Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Electric Power Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Electric Power Co'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.
American Electric Power Co (AEP) has a Gross Margin % of 57.99% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on American Electric Power Co and its competitors. This is near median its historical median of 59.01. Over the past decade, American Electric Power Co's Gross Margin % has ranged from 56.57 to 63.94. According to the industry distribution chart, American Electric Power Co ranks #64 out of 489 companies in the Utilities - Regulated industry, placing it in the top 13.1%.
Is American Electric Power Co's Gross Margin % too high?
American Electric Power Co's current Gross Margin % of 57.99% is near median its 10-year median of 59.01. Over the past 10 years, this metric has ranged from a low of 56.57 to a high of 63.94. The Utilities - Regulated industry median Gross Margin % is 30.88. American Electric Power Co's value of 57.99% is 87.8% above this industry median. Based on the distribution chart, American Electric Power Co ranks #64 out of 489 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, American Electric Power Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Electric Power Co's Gross Margin % compare to D and ETR?
According to the Utilities - Regulated industry distribution chart, American Electric Power Co ranks #64 out of 489 companies for Gross Margin %. This places American Electric Power Co in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.88. American Electric Power Co's value of 57.99% is 87.8% above this benchmark. Historically, American Electric Power Co's own Gross Margin % has ranged from 56.57 to 63.94 over the past decade. While the company's 10-year median is 59.01 vs. the industry median of 30.88, American Electric Power Co 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 Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.88, 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. American Electric Power Co's current Gross Margin % of 57.99% is 87.8% 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 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 American Electric Power Co and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Electric Power Co's current Gross Margin % is 57.99%, which is near median its own 10-year median of 59.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Electric Power Co stock overvalued right now?
Based on GuruFocus' analysis, American Electric Power Co (AEP) is currently considered Modestly Overvalued. The stock's GF Value™ is $110.98, compared to a current price of $135.07 — trading 21.7% above its estimated fair value. The current Gross Margin % is 57.99%, which is near median its 10-year median of 59.01 and 87.8% above the Utilities - Regulated industry median of 30.88. American Electric Power Co's overall GF Score™ is 78/100 with 10 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 American Electric Power Co (AEP), the current Gross Margin % is 57.99% 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 American Electric Power Co (AEP) Overvalued in 2026?
Based on GuruFocus' analysis, American Electric Power Co stock appears to be overvalued.
The current stock price of $135.07 is trading 21.7% above its estimated GF Value™ of $110.98.
GuruFocus considers American Electric Power Co to be Modestly Overvalued.
Key valuation signals for AEP:
Gross Margin %: 57.99% (near median its 10-year median of 59.01)
GF Value™: $110.98 vs. price of $135.07 (21.7% above fair value)
Industry Position: 87.8% above the Utilities - Regulated median (#64 of 489)
No single metric tells the full story. See the AEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 39% of AEP's capacity is coal, with the remainder from a mix of natural gas (28%), renewable energy and hydro (23%), nuclear (7%), and demand response (3%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
78GF Score
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