BSP:EMAE4's Gross Margin % is ranked better than 75.97% of 491
companies
in the Utilities - Regulated industry
Industry Median: 30.95
vs BSP:EMAE4: 46.58
Empresa Metropolitana de Aguas & Energia had a gross margin of 35.65% for the quarter that ended in Mar. 2026 => Competition eroding margins
Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) 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
Empresa Metropolitana de Aguas & Energia had a gross margin of 35.65% 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.
Empresa Metropolitana de Aguas & Energia Gross Margin % Related Terms
Empresa Metropolitana de Aguas & Energia 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.
Empresa Metropolitana de Aguas & Energia Gross Margin % Chart
Empresa Metropolitana de Aguas & Energia Annual Data
For the Utilities - Diversified subindustry, Empresa Metropolitana de Aguas & 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.
Empresa Metropolitana de Aguas & Energia Gross Margin % vs Utilities - Regulated Industry
* 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.
Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) has a Gross Margin % of 35.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Empresa Metropolitana de Aguas & Energia and its competitors. This is 57% above median its historical median of 22.75. Over the past decade, Empresa Metropolitana de Aguas & Energia's Gross Margin % has ranged from 11.79 to 50.57. According to the industry distribution chart, Empresa Metropolitana de Aguas & Energia ranks #118 out of 491 companies in the Utilities - Regulated industry, placing it in the top 24%.
Is Empresa Metropolitana de Aguas & Energia's Gross Margin % too high?
Empresa Metropolitana de Aguas & Energia's current Gross Margin % of 35.65% is 57% above median its 10-year median of 22.75. Over the past 10 years, this metric has ranged from a low of 11.79 to a high of 50.57. The Utilities - Regulated industry median Gross Margin % is 30.95. Empresa Metropolitana de Aguas & Energia's value of 35.65% is 15.2% above this industry median. Based on the distribution chart, Empresa Metropolitana de Aguas & Energia ranks #118 out of 491 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Empresa Metropolitana de Aguas & Energia has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Empresa Metropolitana de Aguas & Energia's Gross Margin % compare to SRE?
According to the Utilities - Regulated industry distribution chart, Empresa Metropolitana de Aguas & Energia ranks #118 out of 491 companies for Gross Margin %. This places Empresa Metropolitana de Aguas & Energia in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.95. Empresa Metropolitana de Aguas & Energia's value of 35.65% is 15.2% above this benchmark. Historically, Empresa Metropolitana de Aguas & Energia's own Gross Margin % has ranged from 11.79 to 50.57 over the past decade. While the company's 10-year median is 22.75 vs. the industry median of 30.95, Empresa Metropolitana de Aguas & 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 - 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. Empresa Metropolitana de Aguas & Energia's current Gross Margin % of 35.65% is 15.2% 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 Empresa Metropolitana de Aguas & Energia 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. Empresa Metropolitana de Aguas & Energia's current Gross Margin % is 35.65%, which is 57% above median its own 10-year median of 22.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa Metropolitana de Aguas & Energia stock overvalued right now?
Based on GuruFocus' analysis, Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) is currently considered Fairly Valued. The stock's GF Value™ is R$37.23, compared to a current price of R$38.51 — trading 3.4% above its estimated fair value. The current Gross Margin % is 35.65%, which is 57% above median its 10-year median of 22.75 and 15.2% above the Utilities - Regulated industry median of 30.95. Empresa Metropolitana de Aguas & Energia's overall GF Score™ is 63/100 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 Empresa Metropolitana de Aguas & Energia (BSP:EMAE4), the current Gross Margin % is 35.65% 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 Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) Overvalued in 2026?
Based on GuruFocus' analysis, Empresa Metropolitana de Aguas & Energia stock appears to be overvalued.
The current stock price of R$38.51 is trading 3.4% above its estimated GF Value™ of R$37.23.
GuruFocus considers Empresa Metropolitana de Aguas & Energia to be Fairly Valued.
Key valuation signals for BSP:EMAE4:
Gross Margin %: 35.65% (57% above median its 10-year median of 22.75)
GF Value™: R$37.23 vs. price of R$38.51 (3.4% above fair value)
Industry Position: 15.2% above the Utilities - Regulated median (#118 of 491)
No single metric tells the full story. See the BSP:EMAE4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Empresa Metropolitana de Aguas & Energia Business Description
Empresa Metropolitana de Aguas & Energia SA is engaged in electricity generation. The company manages a complex hydraulic system that includes dykes, dams, and reservoirs, with notable ones being Billings and Guarapiranga, located in the southern zone of Sao Paulo city, as well as the Sao Paulo and Pedreira pumping stations and the Pinheiros River canal. The company's activities include electricity supply, the construction of energy generation assets, and the provision of operation and maintenance services for power plants and related structures, serving both private companies and public sector entities.
63GF Score
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