American States Water CoAWR +1.06%73 Gross Margin % is 76.15% as of Mar. 2026, which is 1% above its 10-year median of 75.51. GuruFocus rates AWR with a GF Score™ of 73/100 and a GF Value™ of $84.88 (Fairly Valued). The stock has 3 warning signs investors should review. Among 489 Utilities - Regulated companies, American States Water Co ranks better than 93.25% on this metric.
AWR's Gross Margin % is ranked better than 93.25% of 489
companies
in the Utilities - Regulated industry
Industry Median: 30.88
vs AWR: 74.20
American States Water Co had a gross margin of 76.15% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for American States Water Co was -0.20% per year.
American States Water Co (NYSE:AWR) 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 States Water Co had a gross margin of 76.15% 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 States Water Co Gross Margin % Related Terms
American States Water 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 Water subindustry, American States Water 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 States Water Co Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American States Water Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American States Water 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 States Water Co (AWR) has a Gross Margin % of 76.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on American States Water Co and its competitors. This is near median its historical median of 75.51. Over the past decade, American States Water Co's Gross Margin % has ranged from 74.20 to 76.53. According to the industry distribution chart, American States Water Co ranks #33 out of 489 companies in the Utilities - Regulated industry, placing it in the top 6.7%.
Is American States Water Co's Gross Margin % too high?
American States Water Co's current Gross Margin % of 76.15% is near median its 10-year median of 75.51. Over the past 10 years, this metric has ranged from a low of 74.20 to a high of 76.53. The Utilities - Regulated industry median Gross Margin % is 30.88. American States Water Co's value of 76.15% is 146.6% above this industry median. Based on the distribution chart, American States Water Co ranks #33 out of 489 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, American States Water Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American States Water Co's Gross Margin % compare to CWT and HTO?
According to the Utilities - Regulated industry distribution chart, American States Water Co ranks #33 out of 489 companies for Gross Margin %. This places American States Water Co in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.88. American States Water Co's value of 76.15% is 146.6% above this benchmark. Historically, American States Water Co's own Gross Margin % has ranged from 74.20 to 76.53 over the past decade. While the company's 10-year median is 75.51 vs. the industry median of 30.88, American States Water 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 States Water Co's current Gross Margin % of 76.15% is 146.6% 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 States Water 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 States Water Co's current Gross Margin % is 76.15%, which is near median its own 10-year median of 75.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American States Water Co stock overvalued right now?
Based on GuruFocus' analysis, American States Water Co (AWR) is currently considered Fairly Valued. The stock's GF Value™ is $84.88, compared to a current price of $79.87 — trading 5.9% below its estimated fair value. The current Gross Margin % is 76.15%, which is near median its 10-year median of 75.51 and 146.6% above the Utilities - Regulated industry median of 30.88. American States Water Co's overall GF Score™ is 73/100 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 American States Water Co (AWR), the current Gross Margin % is 76.15% 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 States Water Co (AWR) Overvalued in 2026?
Based on GuruFocus' analysis, American States Water Co stock appears to be undervalued.
The current stock price of $79.87 is trading 5.9% below its estimated GF Value™ of $84.88.
GuruFocus considers American States Water Co to be Fairly Valued.
Key valuation signals for AWR:
Gross Margin %: 76.15% (near median its 10-year median of 75.51)
GF Value™: $84.88 vs. price of $79.87 (5.9% below fair value)
Industry Position: 146.6% above the Utilities - Regulated median (#33 of 489)
No single metric tells the full story. See the AWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American States Water Co is a water and utilities holding company based in California. The segments of the firm include water, electric, and contracted services. Within these segments, American States Water conducts water and electric operations through Golden State Water Company and Bear Valley Electric Service, Inc while contracted services through American States Utility Services and its subsidiaries. Golden State Water conducts its operations across various counties in California and is regulated by the California Public Utilities Commission. American States Utility Services has contracted with the U.S. government to provide water services to various military installations. The majority of the company's revenue is derived from water services to commercial and residential customers.
73GF Score
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