Essential UtilitiesHAM:A2A +0.06%73 Net Margin % is 26.04% as of Mar. 2026, which is 6% above its 10-year median of 24.59. GuruFocus rates HAM:A2A with a GF Score™ of 73/100 and a GF Value™ of €35.55 (Fairly Valued). The stock has 7 warning signs investors should review. Among 501 Utilities - Regulated companies, Essential Utilities ranks better than 87.03% on this metric.
The historical rank and industry rank for Essential Utilities's Net Margin % or its related term are showing as below:
HAM:A2A'
s Net Margin % Range Over the Past 10 Years
Min: 19.47 Med: 24.59 Max: 29.61
Current: 21.82
HAM:A2A's Net Margin % is ranked better than 87.03% of 501
companies
in the Utilities - Regulated industry
Industry Median: 8.8
vs HAM:A2A: 21.82
Essential Utilities (HAM:A2A) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Essential Utilities Net Margin % Related Terms
Essential Utilities Net Margin % Historical Data
* Premium members only.
The historical data trend for Essential Utilities's Net 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 Water subindustry, Essential Utilities's Net Margin %, along with its competitors' market caps and Net 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.
Essential Utilities Net Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Net Margin % distribution charts can be found below:
* The bar in red indicates where Essential Utilities's Net 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.
Essential Utilities (HAM:A2A) has a Net Margin % of 26.04% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Essential Utilities and its competitors. This is near median its historical median of 24.59. Over the past decade, Essential Utilities' Net Margin % has ranged from 19.47 to 29.61. According to the industry distribution chart, Essential Utilities ranks #65 out of 501 companies in the Utilities - Regulated industry, placing it in the top 13%.
Is Essential Utilities' Net Margin % too high?
Essential Utilities' current Net Margin % of 26.04% is near median its 10-year median of 24.59. Over the past 10 years, this metric has ranged from a low of 19.47 to a high of 29.61. The Utilities - Regulated industry median Net Margin % is 8.80. Essential Utilities' value of 26.04% is 195.9% above this industry median. Based on the distribution chart, Essential Utilities ranks #65 out of 501 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Essential Utilities has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Net Margin % compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #65 out of 501 companies for Net Margin %. This places Essential Utilities in the top 13% of its industry — outperforming the majority of peers. The industry median Net Margin % is 8.80. Essential Utilities' value of 26.04% is 195.9% above this benchmark. Historically, Essential Utilities' own Net Margin % has ranged from 19.47 to 29.61 over the past decade. While the company's 10-year median is 24.59 vs. the industry median of 8.80, Essential Utilities 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 Net Margin % for an Utilities - Regulated company?
The median Net Margin % among Utilities - Regulated companies is 8.80, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current Net Margin % of 26.04% is 195.9% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median Net Margin % is 8.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current Net Margin % is 26.04%, which is near median its own 10-year median of 24.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essential Utilities stock overvalued right now?
Based on GuruFocus' analysis, Essential Utilities (HAM:A2A) is currently considered Fairly Valued. The stock's GF Value™ is €35.55, compared to a current price of €32.61 — trading 8.3% below its estimated fair value. The current Net Margin % is 26.04%, which is near median its 10-year median of 24.59 and 195.9% above the Utilities - Regulated industry median of 8.80. Essential Utilities' overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Essential Utilities (HAM:A2A), the current Net Margin % is 26.04% 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 Essential Utilities (HAM:A2A) Overvalued in 2026?
Based on GuruFocus' analysis, Essential Utilities stock appears to be undervalued.
The current stock price of €32.61 is trading 8.3% below its estimated GF Value™ of €35.55.
GuruFocus considers Essential Utilities to be Fairly Valued.
Key valuation signals for HAM:A2A:
Net Margin %: 26.04% (near median its 10-year median of 24.59)
GF Value™: €35.55 vs. price of €32.61 (8.3% below fair value)
Industry Position: 195.9% above the Utilities - Regulated median (#65 of 501)
No single metric tells the full story. See the HAM:A2A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essential Utilities is a Pennsylvania-based holding company for US water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Its largest service territory is in Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. It completed the sale of its West Virginia gas utility and the bulk of its nonregulated assets in 2024. Essential shareholders would own a 31% stake in American Water Works if the proposed all-stock merger closes in 2027.
73GF Score
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