Essential UtilitiesHAM:A2A +1.67%71 Gross Margin % is 51.91% as of Mar. 2026, which is 11% below its 10-year median of 58.21. GuruFocus rates HAM:A2A with a GF Score™ of 71/100 and a GF Value™ of €35.73 (Fairly Valued). The stock has 8 warning signs investors should review. Among 489 Utilities - Regulated companies, Essential Utilities ranks better than 84.87% on this metric.
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
Essential Utilities had a gross margin of 51.91% 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.
Essential Utilities Gross Margin % Related Terms
Essential Utilities Gross Margin % Historical Data
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The historical data trend for Essential Utilities'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.
HAM:A2A vs AWR, CWT, HTO: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, Essential Utilities'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.
Essential Utilities Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Essential Utilities'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.
Essential Utilities (HAM:A2A) has a Gross Margin % of 51.91% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Essential Utilities and its competitors. This is 11% below median its historical median of 58.21. Over the past decade, Essential Utilities' Gross Margin % has ranged from 46.87 to 65.13. According to the industry distribution chart, Essential Utilities ranks #74 out of 489 companies in the Utilities - Regulated industry, placing it in the top 15.1%.
Is Essential Utilities' Gross Margin % too high?
Essential Utilities' current Gross Margin % of 51.91% is 11% below median its 10-year median of 58.21. Over the past 10 years, this metric has ranged from a low of 46.87 to a high of 65.13. The Utilities - Regulated industry median Gross Margin % is 31.04. Essential Utilities' value of 51.91% is 67.2% above this industry median. Based on the distribution chart, Essential Utilities ranks #74 out of 489 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Essential Utilities has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Gross Margin % compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #74 out of 489 companies for Gross Margin %. This places Essential Utilities in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 31.04. Essential Utilities' value of 51.91% is 67.2% above this benchmark. Historically, Essential Utilities' own Gross Margin % has ranged from 46.87 to 65.13 over the past decade. While the company's 10-year median is 58.21 vs. the industry median of 31.04, Essential Utilities 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 31.04, 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. Essential Utilities's current Gross Margin % of 51.91% is 67.2% 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 Essential Utilities and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 31.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current Gross Margin % is 51.91%, which is 11% below median its own 10-year median of 58.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essential Utilities stock overvalued right now?
Based on GuruFocus' analysis, Essential Utilities (HAM:A2A) is currently considered Fairly Valued. The stock's GF Value™ is €35.73, compared to a current price of €33.40 — trading 6.5% below its estimated fair value. The current Gross Margin % is 51.91%, which is 11% below median its 10-year median of 58.21 and 67.2% above the Utilities - Regulated industry median of 31.04. Essential Utilities' overall GF Score™ is 71/100 with 8 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 Essential Utilities (HAM:A2A), the current Gross Margin % is 51.91% 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 Essential Utilities (HAM:A2A) Overvalued in 2026?
Based on GuruFocus' analysis, Essential Utilities stock appears to be undervalued.
The current stock price of €33.40 is trading 6.5% below its estimated GF Value™ of €35.73.
GuruFocus considers Essential Utilities to be Fairly Valued.
Key valuation signals for HAM:A2A:
Gross Margin %: 51.91% (11% below median its 10-year median of 58.21)
GF Value™: €35.73 vs. price of €33.40 (6.5% below fair value)
Industry Position: 67.2% above the Utilities - Regulated median (#74 of 489)
No single metric tells the full story. See the HAM:A2A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essential Utilities is a Pennsylvania-based holding company for US water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Its largest service territory is in Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. It completed the sale of its West Virginia gas utility and the bulk of its nonregulated assets in 2024. Essential shareholders would own a 31% stake in American Water Works if the proposed all-stock merger closes in 2027.
71GF Score
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