Pennon GroupPEGRF +4.51%77 Gross Margin % is 98.72% as of Mar. 2026, which is 2% above its 10-year median of 96.39. GuruFocus rates PEGRF with a GF Score™ of 77/100 and a GF Value™ of $6.24 (Fairly Valued). The stock has 9 warning signs investors should review. Among 489 Utilities - Regulated companies, Pennon Group ranks better than 98.36% on this metric.
The historical rank and industry rank for Pennon Group's Gross Margin % or its related term are showing as below:
PEGRF'
s Gross Margin % Range Over the Past 10 Years
Min: 91.44 Med: 96.39 Max: 97.66
Current: 96.9
During the past 13 years, the highestGross Margin % of Pennon Group was 97.66%. The lowest was 91.44%. And the median was 96.39%.
PEGRF's Gross Margin % is ranked better than 98.36% of 489
companies
in the Utilities - Regulated industry
Industry Median: 30.88
vs PEGRF: 96.90
Pennon Group had a gross margin of 98.72% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pennon Group was -0.20% per year.
Pennon Group (OTCPK:PEGRF) 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
Pennon Group had a gross margin of 98.72% 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.
Pennon Group Gross Margin % Related Terms
Pennon Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Pennon Group'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.
PEGRF vs AWK, WTRG, AWR: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, Pennon Group'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.
Pennon Group Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pennon Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pennon Group'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.
Pennon Group (PEGRF) has a Gross Margin % of 98.72% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pennon Group and its competitors. This is near median its historical median of 96.39. Over the past decade, Pennon Group's Gross Margin % has ranged from 91.44 to 97.66. According to the industry distribution chart, Pennon Group ranks #8 out of 489 companies in the Utilities - Regulated industry, placing it in the top 1.6%.
Is Pennon Group's Gross Margin % too high?
Pennon Group's current Gross Margin % of 98.72% is near median its 10-year median of 96.39. Over the past 10 years, this metric has ranged from a low of 91.44 to a high of 97.66. The Utilities - Regulated industry median Gross Margin % is 30.88. Pennon Group's value of 98.72% is 219.7% above this industry median. Based on the distribution chart, Pennon Group ranks #8 out of 489 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Pennon Group has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennon Group's Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #8 out of 489 companies for Gross Margin %. This places Pennon Group in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.88. Pennon Group's value of 98.72% is 219.7% above this benchmark. Historically, Pennon Group's own Gross Margin % has ranged from 91.44 to 97.66 over the past decade. While the company's 10-year median is 96.39 vs. the industry median of 30.88, Pennon Group 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. Pennon Group's current Gross Margin % of 98.72% is 219.7% 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 Pennon Group 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. Pennon Group's current Gross Margin % is 98.72%, which is near median its own 10-year median of 96.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pennon Group stock overvalued right now?
Based on GuruFocus' analysis, Pennon Group (PEGRF) is currently considered Fairly Valued. The stock's GF Value™ is $6.24, compared to a current price of $6.38 — trading 2.2% above its estimated fair value. The current Gross Margin % is 98.72%, which is near median its 10-year median of 96.39 and 219.7% above the Utilities - Regulated industry median of 30.88. Pennon Group's overall GF Score™ is 77/100 with 9 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 Pennon Group (PEGRF), the current Gross Margin % is 98.72% 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 Pennon Group (PEGRF) Overvalued in 2026?
Based on GuruFocus' analysis, Pennon Group stock appears to be overvalued.
The current stock price of $6.38 is trading 2.2% above its estimated GF Value™ of $6.24.
GuruFocus considers Pennon Group to be Fairly Valued.
Key valuation signals for PEGRF:
Gross Margin %: 98.72% (near median its 10-year median of 96.39)
GF Value™: $6.24 vs. price of $6.38 (2.2% above fair value)
Industry Position: 219.7% above the Utilities - Regulated median (#8 of 489)
No single metric tells the full story. See the PEGRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pennon Group PLC is a British water and environmental utility infrastructure company that operates mainly in the United Kingdom. It has smaller operations in the European Union, China, and other countries. The company operates through Water, Non-household retail, and other segments. The water business comprises the regulated water and wastewater services undertaken by South West Water. The non-household retail business comprises the services provided by Pennon Water Services in the non-household water and wastewater retail market. The majority of revenue is derived from the water division.
77GF Score
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