American Water Works CoSTU:AWC +1.93%84 Gross Margin % is 59.15% as of Mar. 2026, which is 3% above its 10-year median of 57.67. GuruFocus rates STU:AWC with a GF Score™ of 84/100 and a GF Value™ of €136.14 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 491 Utilities - Regulated companies, American Water Works Co ranks better than 87.17% on this metric.
STU:AWC's Gross Margin % is ranked better than 87.17% of 491
companies
in the Utilities - Regulated industry
Industry Median: 30.95
vs STU:AWC: 60.73
American Water Works Co had a gross margin of 59.15% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for American Water Works Co was 1.80% per year.
American Water Works Co (STU:AWC) 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
American Water Works Co had a gross margin of 59.15% 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.
American Water Works Co Gross Margin % Related Terms
American Water Works Co 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.
STU:AWC vs WTRG, AWR, CWT: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, American Water Works Co'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.
American Water Works Co Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Water Works Co'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.
American Water Works Co (STU:AWC) has a Gross Margin % of 59.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on American Water Works Co and its competitors. This is near median its historical median of 57.67. Over the past decade, American Water Works Co's Gross Margin % has ranged from 54.60 to 60.73. According to the industry distribution chart, American Water Works Co ranks #63 out of 491 companies in the Utilities - Regulated industry, placing it in the top 12.8%.
Is American Water Works Co's Gross Margin % too high?
American Water Works Co's current Gross Margin % of 59.15% is near median its 10-year median of 57.67. Over the past 10 years, this metric has ranged from a low of 54.60 to a high of 60.73. The Utilities - Regulated industry median Gross Margin % is 30.95. American Water Works Co's value of 59.15% is 91.1% above this industry median. Based on the distribution chart, American Water Works Co ranks #63 out of 491 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, American Water Works Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's Gross Margin % compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #63 out of 491 companies for Gross Margin %. This places American Water Works Co in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.95. American Water Works Co's value of 59.15% is 91.1% above this benchmark. Historically, American Water Works Co's own Gross Margin % has ranged from 54.60 to 60.73 over the past decade. While the company's 10-year median is 57.67 vs. the industry median of 30.95, American Water Works Co 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 30.95, based on 491 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. American Water Works Co's current Gross Margin % of 59.15% is 91.1% 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 American Water Works Co 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. American Water Works Co's current Gross Margin % is 59.15%, which is near median its own 10-year median of 57.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Water Works Co stock overvalued right now?
Based on GuruFocus' analysis, American Water Works Co (STU:AWC) is currently considered Modestly Undervalued. The stock's GF Value™ is €136.14, compared to a current price of €116.15 — trading 14.7% below its estimated fair value. The current Gross Margin % is 59.15%, which is near median its 10-year median of 57.67 and 91.1% above the Utilities - Regulated industry median of 30.95. American Water Works Co's overall GF Score™ is 84/100 with 3 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 American Water Works Co (STU:AWC), the current Gross Margin % is 59.15% 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 American Water Works Co (STU:AWC) Overvalued in 2026?
Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued.
The current stock price of €116.15 is trading 14.7% below its estimated GF Value™ of €136.14.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for STU:AWC:
Gross Margin %: 59.15% (near median its 10-year median of 57.67)
GF Value™: €136.14 vs. price of €116.15 (14.7% below fair value)
Industry Position: 91.1% above the Utilities - Regulated median (#63 of 491)
No single metric tells the full story. See the STU:AWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Water Works is the largest investor-owned US water and wastewater utility, serving nearly 4 million customers in 14 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns. The proposed Essential Utilities acquisition would add regulated water and wastewater utilities in Ohio, North Carolina, and Texas while increasing its presence in Illinois, Indiana, Pennsylvania, New Jersey, and Virginia.
84GF Score
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