Algonquin Power & UtilitiesAQN -0.83%69 Gross Margin % is 67.14% as of Mar. 2026, which is 8% below its 10-year median of 72.90. GuruFocus rates AQN with a GF Score™ of 69/100 and a GF Value™ of $5.66 (Fairly Valued). The stock has 7 warning signs investors should review. Among 491 Utilities - Regulated companies, Algonquin Power & Utilities ranks better than 92.46% on this metric.
Algonquin Power & Utilities (NYSE:AQN) 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
Algonquin Power & Utilities had a gross margin of 67.14% 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.
Algonquin Power & Utilities Gross Margin % Related Terms
Algonquin Power & Utilities 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 - Diversified subindustry, Algonquin Power & Utilities'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.
Algonquin Power & Utilities Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Algonquin Power & Utilities's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Algonquin Power & Utilities'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.
Algonquin Power & Utilities (AQN) has a Gross Margin % of 67.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Algonquin Power & Utilities and its competitors. This is near median its historical median of 72.90. Over the past decade, Algonquin Power & Utilities' Gross Margin % has ranged from 68.61 to 76.09. According to the industry distribution chart, Algonquin Power & Utilities ranks #37 out of 491 companies in the Utilities - Regulated industry, placing it in the top 7.5%.
Is Algonquin Power & Utilities' Gross Margin % too high?
Algonquin Power & Utilities' current Gross Margin % of 67.14% is near median its 10-year median of 72.90. Over the past 10 years, this metric has ranged from a low of 68.61 to a high of 76.09. The Utilities - Regulated industry median Gross Margin % is 30.95. Algonquin Power & Utilities' value of 67.14% is 116.9% above this industry median. Based on the distribution chart, Algonquin Power & Utilities ranks #37 out of 491 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Algonquin Power & Utilities has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Algonquin Power & Utilities' Gross Margin % compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, Algonquin Power & Utilities ranks #37 out of 491 companies for Gross Margin %. This places Algonquin Power & Utilities in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.95. Algonquin Power & Utilities' value of 67.14% is 116.9% above this benchmark. Historically, Algonquin Power & Utilities' own Gross Margin % has ranged from 68.61 to 76.09 over the past decade. While the company's 10-year median is 72.90 vs. the industry median of 30.95, Algonquin Power & Utilities 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 30.95, based on 491 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. Algonquin Power & Utilities's current Gross Margin % of 67.14% is 116.9% 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 Algonquin Power & Utilities 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. Algonquin Power & Utilities's current Gross Margin % is 67.14%, which is near median its own 10-year median of 72.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Algonquin Power & Utilities stock overvalued right now?
Based on GuruFocus' analysis, Algonquin Power & Utilities (AQN) is currently considered Fairly Valued. The stock's GF Value™ is $5.66, compared to a current price of $5.97 — trading 5.5% above its estimated fair value. The current Gross Margin % is 67.14%, which is near median its 10-year median of 72.90 and 116.9% above the Utilities - Regulated industry median of 30.95. Algonquin Power & Utilities' overall GF Score™ is 69/100 with 7 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 Algonquin Power & Utilities (AQN), the current Gross Margin % is 67.14% 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 Algonquin Power & Utilities (AQN) Overvalued in 2026?
Based on GuruFocus' analysis, Algonquin Power & Utilities stock appears to be overvalued.
The current stock price of $5.97 is trading 5.5% above its estimated GF Value™ of $5.66.
GuruFocus considers Algonquin Power & Utilities to be Fairly Valued.
Key valuation signals for AQN:
Gross Margin %: 67.14% (near median its 10-year median of 72.90)
GF Value™: $5.66 vs. price of $5.97 (5.5% above fair value)
Industry Position: 116.9% above the Utilities - Regulated median (#37 of 491)
No single metric tells the full story. See the AQN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Algonquin Power & Utilities Corp is a Canada-based diversified international generation, transmission, and distribution company. The company's operations are organized across two business units: the Regulated Services Group, which owns and operates a portfolio of regulated electric, water distribution, and wastewater collection, and natural gas utility systems and transmission operations in the United States, Canada, Bermuda, and Chile; and the Hydro Group, which consists of hydroelectric-generating facilities located in Canada. It generates the majority of its revenue from the Regulated Services Group segment.
69GF Score
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