Axia EnergiaAXIAP -0.68%71 Gross Margin % is 59.62% as of Mar. 2026, which is 30% below its 10-year median of 85.17. GuruFocus rates AXIAP with a GF Score™ of 71/100 and a GF Value™ of $8.24 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, Axia Energia ranks better than 93.8% on this metric.
Axia Energia had a gross margin of 59.62% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Axia Energia was -0.20% per year.
Axia Energia (NYSE:AXIAp) 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
Axia Energia had a gross margin of 59.62% 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.
Axia Energia Gross Margin % Related Terms
Axia Energia Gross Margin % Historical Data
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The historical data trend for Axia Energia's Gross Margin % can be seen below:
* 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 - Renewable subindustry, Axia Energia'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.
Axia Energia Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Axia Energia's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Axia Energia'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.
Axia Energia (AXIAP) has a Gross Margin % of 59.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Axia Energia and its competitors. This is 30% below median its historical median of 85.17. Over the past decade, Axia Energia's Gross Margin % has ranged from 67.87 to 89.49. According to the industry distribution chart, Axia Energia ranks #25 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 6.2%.
Is Axia Energia's Gross Margin % too high?
Axia Energia's current Gross Margin % of 59.62% is 30% below median its 10-year median of 85.17. Over the past 10 years, this metric has ranged from a low of 67.87 to a high of 89.49. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. Axia Energia's value of 59.62% is 90.2% above this industry median. Based on the distribution chart, Axia Energia ranks #25 out of 403 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Axia Energia has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Axia Energia's Gross Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Axia Energia ranks #25 out of 403 companies for Gross Margin %. This places Axia Energia in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 31.35. Axia Energia's value of 59.62% is 90.2% above this benchmark. Historically, Axia Energia's own Gross Margin % has ranged from 67.87 to 89.49 over the past decade. While the company's 10-year median is 85.17 vs. the industry median of 31.35, Axia Energia 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 - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 403 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. Axia Energia's current Gross Margin % of 59.62% is 90.2% 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 Axia Energia and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axia Energia's current Gross Margin % is 59.62%, which is 30% below median its own 10-year median of 85.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axia Energia stock overvalued right now?
Based on GuruFocus' analysis, Axia Energia (AXIAP) is currently considered Modestly Overvalued. The stock's GF Value™ is $8.24, compared to a current price of $10.74 — trading 30.3% above its estimated fair value. The current Gross Margin % is 59.62%, which is 30% below median its 10-year median of 85.17 and 90.2% above the Utilities - Independent Power Producers industry median of 31.35. Axia Energia's overall GF Score™ is 71/100 with 4 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 Axia Energia (AXIAP), the current Gross Margin % is 59.62% 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 Axia Energia (AXIAP) Overvalued in 2026?
Based on GuruFocus' analysis, Axia Energia stock appears to be overvalued.
The current stock price of $10.74 is trading 30.3% above its estimated GF Value™ of $8.24.
GuruFocus considers Axia Energia to be Modestly Overvalued.
Key valuation signals for AXIAP:
Gross Margin %: 59.62% (30% below median its 10-year median of 85.17)
GF Value™: $8.24 vs. price of $10.74 (30.3% above fair value)
Industry Position: 90.2% above the Utilities - Independent Power Producers median (#25 of 403)
No single metric tells the full story. See the AXIAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axia Energia is engaged in the generation, transmission, and commercialization of electricity in Brazil. The company operates a portfolio of wind, thermal, hydro, and nuclear power plants located throughout the country.
71GF Score
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