Fernheizwerk Neukoelln AGFRA:FHW 67 Gross Margin % is 30.68% as of Dec. 2025, which is 37% below its 10-year median of 48.62. GuruFocus rates FRA:FHW with a GF Score™ of 67/100 and a GF Value™ of €26.62 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 402 Utilities - Independent Power Producers companies, Fernheizwerk Neukoelln AG ranks worse than 51.24% on this metric.
Fernheizwerk Neukoelln AG (FRA:FHW) 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
Fernheizwerk Neukoelln AG had a gross margin of 30.68% for the quarter that ended in Dec. 2025 => 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.
Fernheizwerk Neukoelln AG Gross Margin % Related Terms
Fernheizwerk Neukoelln AG 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.
FRA:FHW vs CEG, VST, NRG: Gross Margin % Comparison
For the Utilities - Independent Power Producers subindustry, Fernheizwerk Neukoelln AG'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.
Fernheizwerk Neukoelln AG Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Fernheizwerk Neukoelln AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fernheizwerk Neukoelln AG'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.
Fernheizwerk Neukoelln AG (FRA:FHW) has a Gross Margin % of 30.68% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Fernheizwerk Neukoelln AG and its competitors. This is 37% below median its historical median of 48.62. Over the past decade, Fernheizwerk Neukoelln AG's Gross Margin % has ranged from 17.85 to 63.43. According to the industry distribution chart, Fernheizwerk Neukoelln AG ranks #206 out of 402 companies in the Utilities - Independent Power Producers industry, placing it in the top 51.2%.
Is Fernheizwerk Neukoelln AG's Gross Margin % too high?
Fernheizwerk Neukoelln AG's current Gross Margin % of 30.68% is 37% below median its 10-year median of 48.62. Over the past 10 years, this metric has ranged from a low of 17.85 to a high of 63.43. The Utilities - Independent Power Producers industry median Gross Margin % is 31.32. Fernheizwerk Neukoelln AG's value of 30.68% is 2% below this industry median. Based on the distribution chart, Fernheizwerk Neukoelln AG ranks #206 out of 402 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Fernheizwerk Neukoelln AG has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fernheizwerk Neukoelln AG's Gross Margin % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Fernheizwerk Neukoelln AG ranks #206 out of 402 companies for Gross Margin %. This places Fernheizwerk Neukoelln AG in the lower half of its industry. The industry median Gross Margin % is 31.32. Fernheizwerk Neukoelln AG's value of 30.68% is 2% below this benchmark. Historically, Fernheizwerk Neukoelln AG's own Gross Margin % has ranged from 17.85 to 63.43 over the past decade. While the company's 10-year median is 48.62 vs. the industry median of 31.32, Fernheizwerk Neukoelln AG 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 31.32, based on 402 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. Fernheizwerk Neukoelln AG's current Gross Margin % of 30.68% is 2% 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 Fernheizwerk Neukoelln AG and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fernheizwerk Neukoelln AG's current Gross Margin % is 30.68%, which is 37% below median its own 10-year median of 48.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fernheizwerk Neukoelln AG stock overvalued right now?
Based on GuruFocus' analysis, Fernheizwerk Neukoelln AG (FRA:FHW) is currently considered Significantly Undervalued. The stock's GF Value™ is €26.62, compared to a current price of €18.60 — trading 30.1% below its estimated fair value. The current Gross Margin % is 30.68%, which is 37% below median its 10-year median of 48.62 and 2% below the Utilities - Independent Power Producers industry median of 31.32. Fernheizwerk Neukoelln AG's overall GF Score™ is 67/100 with 7 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 Fernheizwerk Neukoelln AG (FRA:FHW), the current Gross Margin % is 30.68% as of Dec. 2025. 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 Fernheizwerk Neukoelln AG (FRA:FHW) Overvalued in 2026?
Based on GuruFocus' analysis, Fernheizwerk Neukoelln AG stock appears to be undervalued.
The current stock price of €18.60 is trading 30.1% below its estimated GF Value™ of €26.62.
GuruFocus considers Fernheizwerk Neukoelln AG to be Significantly Undervalued.
Key valuation signals for FRA:FHW:
Gross Margin %: 30.68% (37% below median its 10-year median of 48.62)
GF Value™: €26.62 vs. price of €18.60 (30.1% below fair value)
Industry Position: 2% below the Utilities - Independent Power Producers median (#206 of 402)
No single metric tells the full story. See the FRA:FHW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fernheizwerk Neukoelln AG is a German company which offers heating services to the city of Berlin. The company operates a grid of steam and hot water pipes throughout the city.
67GF Score
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