Talen EnergyTLN -1.46%33 Gross Margin % is 39.40% as of Mar. 2026, which is 3% above its 10-year median of 38.12. GuruFocus rates TLN with a GF Score™ of 33/100. The stock has 8 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, Talen Energy ranks better than 60.79% on this metric.
Talen Energy had a gross margin of 39.40% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Talen Energy was 0.00% per year.
Talen Energy (NAS:TLN) 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
Talen Energy had a gross margin of 39.40% for the quarter that ended in Mar. 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.
Talen Energy Gross Margin % Related Terms
Talen Energy Gross Margin % Historical Data
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The historical data trend for Talen Energy'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 - Independent Power Producers subindustry, Talen Energy'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.
Talen Energy Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Talen Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Talen Energy'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.
Talen Energy (TLN) has a Gross Margin % of 39.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Talen Energy and its competitors. This is near median its historical median of 38.12. Over the past decade, Talen Energy's Gross Margin % has ranged from 13.58 to 58.27. According to the industry distribution chart, Talen Energy ranks #158 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 39.2%.
Is Talen Energy's Gross Margin % too high?
Talen Energy's current Gross Margin % of 39.40% is near median its 10-year median of 38.12. Over the past 10 years, this metric has ranged from a low of 13.58 to a high of 58.27. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. Talen Energy's value of 39.40% is 25.7% above this industry median. Based on the distribution chart, Talen Energy ranks #158 out of 403 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Talen Energy has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Talen Energy's Gross Margin % compare to OKLO and NRG?
According to the Utilities - Independent Power Producers industry distribution chart, Talen Energy ranks #158 out of 403 companies for Gross Margin %. This puts Talen Energy in the upper half of its industry. The industry median Gross Margin % is 31.35. Talen Energy's value of 39.40% is 25.7% above this benchmark. Historically, Talen Energy's own Gross Margin % has ranged from 13.58 to 58.27 over the past decade. While the company's 10-year median is 38.12 vs. the industry median of 31.35, Talen Energy 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 - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 403 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. Talen Energy's current Gross Margin % of 39.40% is 25.7% 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 Talen Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Talen Energy's current Gross Margin % is 39.40%, which is near median its own 10-year median of 38.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Talen Energy stock overvalued right now?
Talen Energy (TLN) has a current Gross Margin % of 39.40%. The current Gross Margin % is 39.40%, which is near median its 10-year median of 38.12 and 25.7% above the Utilities - Independent Power Producers industry median of 31.35. Talen Energy's overall GF Score™ is 33/100 with 8 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 Talen Energy (TLN), the current Gross Margin % is 39.40% 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.
Talen Energy Corp is an independent power producer and energy infrastructure company based in the United States. It owns and operates several gigawatts of power infrastructure in the United States, including 2.2GW of nuclear power and a dispatchable fossil fleet. The company produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets, with its generation fleet principally located in the Mid-Atlantic, Ohio, and Montana. Talen's operating segments are: PJM and Others. The PJM segment, which generates maximum revenue, is engaged in electricity generation, marketing activities, and commodity risk and fuel management within the PJM market and is comprised of Susquehanna and Talen's natural gas and coal generation facilities in PJM.
33GF Score
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