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RGC ResourcesRGCO +0.80%70 Gross Margin % is 29.68% as of Jun. 2026, which is 7% below its 10-year median of 31.88. GuruFocus rates RGCO with a GF Score™ of 70/100 and a GF Value™ of $24.94 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 487 Utilities - Regulated companies, RGC Resources ranks better than 50.92% 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
RGC Resources had a gross margin of 29.68% for the quarter that ended in Jun. 2026 => 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.
RGC Resources Gross Margin % Related Terms
RGC Resources Gross Margin % Historical Data
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The historical data trend for RGC Resources'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 - Regulated Gas subindustry, RGC Resources'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.
RGC Resources Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, RGC Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RGC Resources'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.
RGC Resources (RGCO) has a Gross Margin % of 29.68% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on RGC Resources and its competitors. This is near median its historical median of 31.88. Over the past decade, RGC Resources' Gross Margin % has ranged from 30.55 to 35.84. According to the industry distribution chart, RGC Resources ranks #239 out of 487 companies in the Utilities - Regulated industry, placing it in the top 49.1%.
Is RGC Resources' Gross Margin % too high?
RGC Resources' current Gross Margin % of 29.68% is near median its 10-year median of 31.88. Over the past 10 years, this metric has ranged from a low of 30.55 to a high of 35.84. The Utilities - Regulated industry median Gross Margin % is 30.95. RGC Resources' value of 29.68% is 4.1% below this industry median. Based on the distribution chart, RGC Resources ranks #239 out of 487 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, RGC Resources has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RGC Resources' Gross Margin % compare to OPAL and ATO?
According to the Utilities - Regulated industry distribution chart, RGC Resources ranks #239 out of 487 companies for Gross Margin %. This puts RGC Resources in the upper half of its industry. The industry median Gross Margin % is 30.95. RGC Resources' value of 29.68% is 4.1% below this benchmark. Historically, RGC Resources' own Gross Margin % has ranged from 30.55 to 35.84 over the past decade. While the company's 10-year median is 31.88 vs. the industry median of 30.95, RGC Resources 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 - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.95, based on 487 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. RGC Resources's current Gross Margin % of 29.68% is 4.1% 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 RGC Resources and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RGC Resources's current Gross Margin % is 29.68%, which is near median its own 10-year median of 31.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RGC Resources stock overvalued right now?
Based on GuruFocus' analysis, RGC Resources (RGCO) is currently considered Modestly Undervalued. The stock's GF Value™ is $24.94, compared to a current price of $21.87 — trading 12.3% below its estimated fair value. The current Gross Margin % is 29.68%, which is near median its 10-year median of 31.88 and 4.1% below the Utilities - Regulated industry median of 30.95. RGC Resources' overall GF Score™ is 70/100 with 4 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 RGC Resources (RGCO), the current Gross Margin % is 29.68% as of Jun. 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 RGC Resources (RGCO) Overvalued in 2026?
Based on GuruFocus' analysis, RGC Resources stock appears to be undervalued.
The current stock price of $21.87 is trading 12.3% below its estimated GF Value™ of $24.94.
GuruFocus considers RGC Resources to be Modestly Undervalued.
Key valuation signals for RGCO:
Gross Margin %: 29.68% (near median its 10-year median of 31.88)
GF Value™: $24.94 vs. price of $21.87 (12.3% below fair value)
Industry Position: 4.1% below the Utilities - Regulated median (#239 of 487)
No single metric tells the full story. See the RGCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RGC Resources Inc is involved in the business of distribution and sale of natural gas to residential, commercial, and industrial customers within its service territory in Roanoke, Virginia, and its surrounding localities. The company also provides certain non-regulated services. The company relies on multiple interstate pipelines to transport natural gas. The company operates in three segments: Gas Utility, which is the key revenue generator; Investment in Affiliates this segment reflects the income generated through the activities of the Company's investment in MVP and Southgate projects and Parent & Other including the unregulated activities of the Company as well as certain corporate eliminations.
70GF Score
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