CNLHN.PFD (The Connecticut Light & Power Co) Gross Margin %: 40.02% (As of Dec. 2019) — 33% Below Median


What is The Connecticut Light & Power Co Gross Margin %?

The Connecticut Light & Power Co CNLHN.PFD +0.03% Gross Margin % is 40.02% as of Dec. 2019, which is 33% below its 10-year median of 59.83. The stock has 2 warning signs investors should review.

Gross Margin % is calculated as gross profit divided by its revenue. The Connecticut Light & Power Co's Gross Profit for the three months ended in Dec. 2019 was $315.60 Mil. The Connecticut Light & Power Co's Revenue for the three months ended in Dec. 2019 was $788.52 Mil. Therefore, The Connecticut Light & Power Co's Gross Margin % for the quarter that ended in Dec. 2019 was 40.02%.


The historical rank and industry rank for The Connecticut Light & Power Co's Gross Margin % or its related term are showing as below:

CNLHN.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 48.14   Med: 59.83   Max: 64.35
Current: 64.27

During the past 13 years, the highest Gross Margin % of The Connecticut Light & Power Co was 64.35%. The lowest was 48.14%. And the median was 59.83%.

CNLHN.PFD's Gross Margin % is not ranked
in the Utilities - Regulated industry.
Industry Median: 30.88 vs CNLHN.PFD: 64.27

The Connecticut Light & Power Co had a gross margin of 40.02% for the quarter that ended in Dec. 2019 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for The Connecticut Light & Power Co was 6.50% per year.

The Connecticut Light & Power Co  (OTCPK:CNLHN.PFD) 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

The Connecticut Light & Power Co had a gross margin of 40.02% for the quarter that ended in Dec. 2019 => 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.

The Connecticut Light & Power Co Gross Margin % Related Terms

The Connecticut Light & Power Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for The Connecticut Light & Power Co'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.

The Connecticut Light & Power Co Gross Margin % Chart

The Connecticut Light & Power Co Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.38 49.73 50.37 48.27 46.25

The Connecticut Light & Power Co Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 47.38 46.96 48.72 49.17 40.02

CNLHN.PFD vs RSERF, EUSP, BLXX: Gross Margin % Comparison

For the Utilities - Regulated Electric subindustry, The Connecticut Light & Power 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.

The Connecticut Light & Power Co Gross Margin % vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, The Connecticut Light & Power Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Connecticut Light & Power Co's Gross Margin % falls into.


The Connecticut Light & Power Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The Connecticut Light & Power Co's Gross Margin for the fiscal year that ended in Dec. 2019 is calculated as

Gross Margin % (A: Dec. 2019 )=Gross Profit (A: Dec. 2019 ) / Revenue (A: Dec. 2019 )
=1495.2 / 3232.551
=(Revenue - Cost of Goods Sold) / Revenue
=(3232.551 - 1737.369) / 3232.551
=46.25 %

The Connecticut Light & Power Co's Gross Margin for the quarter that ended in Dec. 2019 is calculated as


Gross Margin % (Q: Dec. 2019 )=Gross Profit (Q: Dec. 2019 ) / Revenue (Q: Dec. 2019 )
=315.6 / 788.517
=(Revenue - Cost of Goods Sold) / Revenue
=(788.517 - 472.915) / 788.517
=40.02 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 40.02% mean?
The Connecticut Light & Power Co (CNLHN.PFD) has a Gross Margin % of 40.02% as of Dec. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on The Connecticut Light & Power Co and its competitors. This is 33% below median its historical median of 59.83. Over the past decade, The Connecticut Light & Power Co's Gross Margin % has ranged from 48.14 to 64.35.
Is The Connecticut Light & Power Co's Gross Margin % too high?
The Connecticut Light & Power Co's current Gross Margin % of 40.02% is 33% below median its 10-year median of 59.83. Over the past 10 years, this metric has ranged from a low of 48.14 to a high of 64.35. The Utilities - Regulated industry median Gross Margin % is 30.88. The Connecticut Light & Power Co's value of 40.02% is 29.6% above this industry median.
How does The Connecticut Light & Power Co's Gross Margin % compare to RSERF and EUSP?
The Connecticut Light & Power Co's Gross Margin % of 40.02% can be compared against companies in the Utilities - Regulated industry. The industry median Gross Margin % is 30.88. The Connecticut Light & Power Co's value of 40.02% is 29.6% above this benchmark. Historically, The Connecticut Light & Power Co's own Gross Margin % has ranged from 48.14 to 64.35 over the past decade. While the company's 10-year median is 59.83 vs. the industry median of 30.88, The Connecticut Light & Power 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. The Connecticut Light & Power Co's current Gross Margin % of 40.02% is 29.6% 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 The Connecticut Light & Power 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. The Connecticut Light & Power Co's current Gross Margin % is 40.02%, which is 33% below median its own 10-year median of 59.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Connecticut Light & Power Co stock overvalued right now?
The Connecticut Light & Power Co (CNLHN.PFD) has a current Gross Margin % of 40.02%. The current Gross Margin % is 40.02%, which is 33% below median its 10-year median of 59.83 and 29.6% above the Utilities - Regulated industry median of 30.88. 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 The Connecticut Light & Power Co (CNLHN.PFD), the current Gross Margin % is 40.02% as of Dec. 2019. 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.

The Connecticut Light & Power Co Business Description

Address 107 Selden Street, Berlin, CT, USA, 06037-1616
The Connecticut Light & Power Co is a regulated electric utility that serves residential, commercial, and industrial customers in parts of Connecticut. Its business consists of the purchase, delivery, and sale of electricity to residential, commercial, and industrial customers. The company has four segments: Electric Distribution Segment, Electric Transmission Segment, Natural Gas Distribution Segment, and Water Distribution Segment. The majority of revenue is gained from the Electric Transmission Segment.