Gross Margin % is calculated as gross profit divided by its revenue. Public Service Enterprise Group's Gross Profit for the
three
months ended in Dec. 2023 was $991 Mil. Public Service Enterprise Group's Revenue for the
three
months ended in Dec. 2023 was $2,605 Mil. Therefore, Public Service Enterprise Group's Gross Margin % for the quarter that ended in Dec. 2023 was 38.04%.
The historical rank and industry rank for Public Service Enterprise Group's Gross Margin % or its related term are showing as below:
PEG'
s Gross Margin % Range Over the Past 10 Years
Min: 26.57 Med: 35.52 Max: 42.96
Current: 42.96
During the past 13 years, the highestGross Margin % of Public Service Enterprise Group was 42.96%. The lowest was 26.57%. And the median was 35.52%.
PEG's Gross Margin % is ranked better than 74.35% of 503
companies
in the Utilities - Regulated industry
Industry Median: 28.6
vs PEG: 42.96
Public Service Enterprise Group had a gross margin of 38.04% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Public Service Enterprise Group was -0.10% per year.
Public Service Enterprise Group Gross Margin % Historical Data
The historical data trend for Public Service Enterprise 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.
For the Utilities - Regulated Electric subindustry, Public Service Enterprise 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.
Public Service Enterprise Group Gross Margin % Distribution
For the Utilities - Regulated industry and Utilities sector, Public Service Enterprise Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Public Service Enterprise Group's Gross Margin % falls into.
Public Service Enterprise Group Gross Margin % Calculation
* 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.
Public Service Enterprise Group (NYSE:PEG) 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
Public Service Enterprise Group had a gross margin of 38.04% for the quarter that ended in Dec. 2023 => 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.
Public Service Enterprise Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Public Service Enterprise Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Public Service Enterprise Group (Public Service Enterprise Group) Business Description
Public Service Enterprise Group is the holding company for a regulated utility (PSE&G) and other nonregulated businesses such as nuclear power generation and clean energy projects. PSE&G provides regulated gas and electricity delivery services in New Jersey to a combined 4.2 million customers. Public Service Enterprise Group also operates the Long Island Power Authority system. In 2022, the company sold its gas and oil power plants in the mid-Atlantic, New York, and the Northeast.
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