Hera SpAMEX:HERN 56 Gross Margin % is 44.54% as of Mar. 2026, which is 8% above its 10-year median of 41.35. GuruFocus rates MEX:HERN with a GF Score™ of 56/100 and a GF Value™ of MXN70.12 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 489 Utilities - Regulated companies, Hera SpA ranks better than 77.1% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Hera SpA's Gross Profit for the
three
months ended in Mar. 2026 was MXN32,661 Mil. Hera SpA's Revenue for the
three
months ended in Mar. 2026 was MXN73,332 Mil. Therefore, Hera SpA's Gross Margin % for the quarter that ended in Mar. 2026 was 44.54%.
The historical rank and industry rank for Hera SpA's Gross Margin % or its related term are showing as below:
MEX:HERN'
s Gross Margin % Range Over the Past 10 Years
Min: 17.28 Med: 41.35 Max: 55.46
Current: 47.09
During the past 13 years, the highestGross Margin % of Hera SpA was 55.46%. The lowest was 17.28%. And the median was 41.35%.
MEX:HERN's Gross Margin % is ranked better than 77.1% of 489
companies
in the Utilities - Regulated industry
Industry Median: 30.88
vs MEX:HERN: 47.09
Hera SpA had a gross margin of 44.54% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hera SpA was 1.40% per year.
Hera SpA (MEX:HERN) 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
Hera SpA had a gross margin of 44.54% 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.
Hera SpA Gross Margin % Related Terms
Hera SpA Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hera SpA'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.
For the Utilities - Diversified subindustry, Hera SpA'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.
Hera SpA Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hera SpA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hera SpA'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.
Hera SpA (MEX:HERN) has a Gross Margin % of 44.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hera SpA and its competitors. This is near median its historical median of 41.35. Over the past decade, Hera SpA's Gross Margin % has ranged from 17.28 to 55.46. According to the industry distribution chart, Hera SpA ranks #112 out of 489 companies in the Utilities - Regulated industry, placing it in the top 22.9%.
Is Hera SpA's Gross Margin % too high?
Hera SpA's current Gross Margin % of 44.54% is near median its 10-year median of 41.35. Over the past 10 years, this metric has ranged from a low of 17.28 to a high of 55.46. The Utilities - Regulated industry median Gross Margin % is 30.88. Hera SpA's value of 44.54% is 44.2% above this industry median. Based on the distribution chart, Hera SpA ranks #112 out of 489 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Hera SpA has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hera SpA's Gross Margin % compare to SRE?
According to the Utilities - Regulated industry distribution chart, Hera SpA ranks #112 out of 489 companies for Gross Margin %. This places Hera SpA in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.88. Hera SpA's value of 44.54% is 44.2% above this benchmark. Historically, Hera SpA's own Gross Margin % has ranged from 17.28 to 55.46 over the past decade. While the company's 10-year median is 41.35 vs. the industry median of 30.88, Hera SpA 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. Hera SpA's current Gross Margin % of 44.54% is 44.2% 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 Hera SpA 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. Hera SpA's current Gross Margin % is 44.54%, which is near median its own 10-year median of 41.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hera SpA stock overvalued right now?
Based on GuruFocus' analysis, Hera SpA (MEX:HERN) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN70.12, compared to a current price of MXN81.23 — trading 15.8% above its estimated fair value. The current Gross Margin % is 44.54%, which is near median its 10-year median of 41.35 and 44.2% above the Utilities - Regulated industry median of 30.88. Hera SpA's overall GF Score™ is 56/100 with 5 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 Hera SpA (MEX:HERN), the current Gross Margin % is 44.54% 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 Hera SpA (MEX:HERN) Overvalued in 2026?
Based on GuruFocus' analysis, Hera SpA stock appears to be overvalued.
The current stock price of MXN81.23 is trading 15.8% above its estimated GF Value™ of MXN70.12.
GuruFocus considers Hera SpA to be Modestly Overvalued.
Key valuation signals for MEX:HERN:
Gross Margin %: 44.54% (near median its 10-year median of 41.35)
GF Value™: MXN70.12 vs. price of MXN81.23 (15.8% above fair value)
Industry Position: 44.2% above the Utilities - Regulated median (#112 of 489)
No single metric tells the full story. See the MEX:HERN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hera SpA is an Italian coalescence of municipally owned companies that manages the supply of energy, water and environmental services, as well as public lighting and telecommunications to citizens and businesses. The company operates mainly in Italy in the waste management (waste management and treatment), water (aqueduct, sewerage and purification) and energy (distribution and sale of electricity, gas and energy services) sectors; it also offers services for public lighting and telecommunications.
56GF Score
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