United Utilities GroupSTU:UUEC +1.12%74 Gross Margin % is 94.22% as of Mar. 2026, which is 1% below its 10-year median of 95.29. GuruFocus rates STU:UUEC with a GF Score™ of 74/100 and a GF Value™ of €16.41 (Fairly Valued). The stock has 5 warning signs investors should review. Among 491 Utilities - Regulated companies, United Utilities Group ranks better than 97.35% on this metric.
STU:UUEC's Gross Margin % is ranked better than 97.35% of 491
companies
in the Utilities - Regulated industry
Industry Median: 30.95
vs STU:UUEC: 93.87
United Utilities Group had a gross margin of 94.22% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for United Utilities Group was -0.40% per year.
United Utilities Group (STU:UUEC) 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
United Utilities Group had a gross margin of 94.22% 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.
United Utilities Group Gross Margin % Related Terms
United Utilities Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for United Utilities 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.
STU:UUEC vs AWK, WTRG, AWR: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, United Utilities 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.
United Utilities Group Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, United Utilities Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where United Utilities 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.
United Utilities Group (STU:UUEC) has a Gross Margin % of 94.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on United Utilities Group and its competitors. This is near median its historical median of 95.29. Over the past decade, United Utilities Group's Gross Margin % has ranged from 92.64 to 96.12. According to the industry distribution chart, United Utilities Group ranks #13 out of 491 companies in the Utilities - Regulated industry, placing it in the top 2.6%.
Is United Utilities Group's Gross Margin % too high?
United Utilities Group's current Gross Margin % of 94.22% is near median its 10-year median of 95.29. Over the past 10 years, this metric has ranged from a low of 92.64 to a high of 96.12. The Utilities - Regulated industry median Gross Margin % is 30.95. United Utilities Group's value of 94.22% is 204.4% above this industry median. Based on the distribution chart, United Utilities Group ranks #13 out of 491 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, United Utilities Group has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does United Utilities Group's Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, United Utilities Group ranks #13 out of 491 companies for Gross Margin %. This places United Utilities Group in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.95. United Utilities Group's value of 94.22% is 204.4% above this benchmark. Historically, United Utilities Group's own Gross Margin % has ranged from 92.64 to 96.12 over the past decade. While the company's 10-year median is 95.29 vs. the industry median of 30.95, United Utilities 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 30.95, 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. United Utilities Group's current Gross Margin % of 94.22% is 204.4% 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 United Utilities Group 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. United Utilities Group's current Gross Margin % is 94.22%, which is near median its own 10-year median of 95.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Utilities Group stock overvalued right now?
Based on GuruFocus' analysis, United Utilities Group (STU:UUEC) is currently considered Fairly Valued. The stock's GF Value™ is €16.41, compared to a current price of €15.32 — trading 6.6% below its estimated fair value. The current Gross Margin % is 94.22%, which is near median its 10-year median of 95.29 and 204.4% above the Utilities - Regulated industry median of 30.95. United Utilities Group's overall GF Score™ is 74/100 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 United Utilities Group (STU:UUEC), the current Gross Margin % is 94.22% 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 United Utilities Group (STU:UUEC) Overvalued in 2026?
Based on GuruFocus' analysis, United Utilities Group stock appears to be undervalued.
The current stock price of €15.32 is trading 6.6% below its estimated GF Value™ of €16.41.
GuruFocus considers United Utilities Group to be Fairly Valued.
Key valuation signals for STU:UUEC:
Gross Margin %: 94.22% (near median its 10-year median of 95.29)
GF Value™: €16.41 vs. price of €15.32 (6.6% below fair value)
Industry Position: 204.4% above the Utilities - Regulated median (#13 of 491)
No single metric tells the full story. See the STU:UUEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Utilities Group is primarily a holding company for United Utilities Water, the country's largest regulated water and wastewater utility, serving customers in northwest England, including Manchester and Liverpool.
74GF Score
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