Pennon GroupPEGRF +4.51%77 Net Margin % is 5.42% as of Mar. 2026, which is 47% below its 10-year median of 10.22. GuruFocus rates PEGRF with a GF Score™ of 77/100 and a GF Value™ of $6.24 (Fairly Valued). The stock has 9 warning signs investors should review. Among 501 Utilities - Regulated companies, Pennon Group ranks worse than 55.29% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Pennon Group's Net Income for the
six
months ended in Mar. 2026 was $46 Mil. Pennon Group's Revenue for the
six
months ended in Mar. 2026 was $844 Mil. Therefore, Pennon Group's net margin for the quarter that ended in Mar. 2026 was 5.42%.
The historical rank and industry rank for Pennon Group's Net Margin % or its related term are showing as below:
PEGRF'
s Net Margin % Range Over the Past 10 Years
Min: -5.53 Med: 10.22 Max: 282.36
Current: 7.09
PEGRF's Net Margin % is ranked worse than 55.29% of 501
companies
in the Utilities - Regulated industry
Industry Median: 8.8
vs PEGRF: 7.09
Pennon Group (OTCPK:PEGRF) 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.
Pennon Group Net Margin % Related Terms
Pennon Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Pennon Group'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, Pennon Group'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.
Pennon Group Net Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pennon Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Pennon Group'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.
Pennon Group (PEGRF) has a Net Margin % of 5.42% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Pennon Group and its competitors. This is 47% below median its historical median of 10.22. According to the industry distribution chart, Pennon Group ranks #277 out of 501 companies in the Utilities - Regulated industry, placing it in the top 55.3%.
Is Pennon Group's Net Margin % too high?
Pennon Group's current Net Margin % of 5.42% is 47% below median its 10-year median of 10.22. The Utilities - Regulated industry median Net Margin % is 8.80. Pennon Group's value of 5.42% is 38.4% below this industry median. Based on the distribution chart, Pennon Group ranks #277 out of 501 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Pennon Group has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennon Group's Net Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #277 out of 501 companies for Net Margin %. This places Pennon Group in the lower half of its industry. The industry median Net Margin % is 8.80. Pennon Group's value of 5.42% is 38.4% below this benchmark. While the company's 10-year median is 10.22 vs. the industry median of 8.80, Pennon Group has consistently been below 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. Pennon Group's current Net Margin % of 5.42% is 38.4% below 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 Pennon Group 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. Pennon Group's current Net Margin % is 5.42%, which is 47% below median its own 10-year median of 10.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pennon Group stock overvalued right now?
Based on GuruFocus' analysis, Pennon Group (PEGRF) is currently considered Fairly Valued. The stock's GF Value™ is $6.24, compared to a current price of $6.38 — trading 2.2% above its estimated fair value. The current Net Margin % is 5.42%, which is 47% below median its 10-year median of 10.22 and 38.4% below the Utilities - Regulated industry median of 8.80. Pennon Group's overall GF Score™ is 77/100 with 9 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 Pennon Group (PEGRF), the current Net Margin % is 5.42% 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 Pennon Group (PEGRF) Overvalued in 2026?
Based on GuruFocus' analysis, Pennon Group stock appears to be overvalued.
The current stock price of $6.38 is trading 2.2% above its estimated GF Value™ of $6.24.
GuruFocus considers Pennon Group to be Fairly Valued.
Key valuation signals for PEGRF:
Net Margin %: 5.42% (47% below median its 10-year median of 10.22)
GF Value™: $6.24 vs. price of $6.38 (2.2% above fair value)
Industry Position: 38.4% below the Utilities - Regulated median (#277 of 501)
No single metric tells the full story. See the PEGRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pennon Group PLC is a British water and environmental utility infrastructure company that operates mainly in the United Kingdom. It has smaller operations in the European Union, China, and other countries. The company operates through Water, Non-household retail, and other segments. The water business comprises the regulated water and wastewater services undertaken by South West Water. The non-household retail business comprises the services provided by Pennon Water Services in the non-household water and wastewater retail market. The majority of revenue is derived from the water division.
77GF Score
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