Renova EnergiaBSP:RNEW4 51 Gross Margin % is 1.89% as of Mar. 2026, which is 83% below its 10-year median of 10.83. GuruFocus rates BSP:RNEW4 with a GF Score™ of 51/100 and a GF Value™ of R$1.27 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, Renova Energia ranks worse than 94.79% on this metric.
The historical rank and industry rank for Renova Energia's Gross Margin % or its related term are showing as below:
BSP:RNEW4'
s Gross Margin % Range Over the Past 10 Years
Min: -17.53 Med: 10.83 Max: 76.13
Current: -5.45
During the past 13 years, the highestGross Margin % of Renova Energia was 76.13%. The lowest was -17.53%. And the median was 10.83%.
BSP:RNEW4's Gross Margin % is ranked worse than 94.79% of 403
companies
in the Utilities - Independent Power Producers industry
Industry Median: 31.35
vs BSP:RNEW4: -5.45
Renova Energia had a gross margin of 1.89% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Renova Energia was 0.00% per year.
Renova Energia (BSP:RNEW4) 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
Renova Energia had a gross margin of 1.89% for the quarter that ended in Mar. 2026 => No sustainable 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.
Renova Energia Gross Margin % Related Terms
Renova Energia Gross Margin % Historical Data
* Premium members only.
The historical data trend for Renova 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.
Renova Energia Gross Margin % Competitor Comparison
For the Utilities - Renewable subindustry, Renova 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.
Renova Energia Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Renova Energia's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Renova 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.
Renova Energia (BSP:RNEW4) has a Gross Margin % of 1.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Renova Energia and its competitors. This is 83% below median its historical median of 10.83. According to the industry distribution chart, Renova Energia ranks #382 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 94.8%.
Is Renova Energia's Gross Margin % too high?
Renova Energia's current Gross Margin % of 1.89% is 83% below median its 10-year median of 10.83. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. Renova Energia's value of 1.89% is 94% below this industry median. Based on the distribution chart, Renova Energia ranks #382 out of 403 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Renova Energia has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Renova Energia's Gross Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Renova Energia ranks #382 out of 403 companies for Gross Margin %. This places Renova Energia in the lower half of its industry. The industry median Gross Margin % is 31.35. Renova Energia's value of 1.89% is 94% below this benchmark. While the company's 10-year median is 10.83 vs. the industry median of 31.35, Renova Energia has consistently been below 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. Renova Energia's current Gross Margin % of 1.89% is 94% below 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 Renova 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. Renova Energia's current Gross Margin % is 1.89%, which is 83% below median its own 10-year median of 10.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renova Energia stock overvalued right now?
Based on GuruFocus' analysis, Renova Energia (BSP:RNEW4) is currently considered Possible Value Trap. The stock's GF Value™ is R$1.27, compared to a current price of R$0.89 — trading 29.9% below its estimated fair value. The current Gross Margin % is 1.89%, which is 83% below median its 10-year median of 10.83 and 94% below the Utilities - Independent Power Producers industry median of 31.35. Renova Energia's overall GF Score™ is 51/100 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 Renova Energia (BSP:RNEW4), the current Gross Margin % is 1.89% 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 Renova Energia (BSP:RNEW4) Overvalued in 2026?
Based on GuruFocus' analysis, Renova Energia stock appears to be undervalued.
The current stock price of R$0.89 is trading 29.9% below its estimated GF Value™ of R$1.27.
GuruFocus considers Renova Energia to be Possible Value Trap.
Key valuation signals for BSP:RNEW4:
Gross Margin %: 1.89% (83% below median its 10-year median of 10.83)
GF Value™: R$1.27 vs. price of R$0.89 (29.9% below fair value)
Industry Position: 94% below the Utilities - Independent Power Producers median (#382 of 403)
No single metric tells the full story. See the BSP:RNEW4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renova Energia SA is a Brazilian energy company engaged in the development, implementation, and operation of power generation projects from renewable sources - wind and solar, and trading of energy and related activities. The company is generating and trading electric power in all its forms, producing fuel from natural and renewable sources, providing logistics services to environmental advisory firms, and providing advisory services for energy solutions related to the generation, trading, transmission, and other businesses. The company has operating segments, namely: Wind, Solar, Trading, and Administrative. It derives maximum revenue from the Trading segment, which is engaged in energy trading in all its forms and management of the Company's energy purchase and sale contracts.
51GF Score
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