Rede Energia ParticipacoesBSP:REDE3 73 Operating Margin % is 19.62% as of Mar. 2026, which is 14% above its 10-year median of 17.16. GuruFocus rates BSP:REDE3 with a GF Score™ of 73/100 and a GF Value™ of R$5.99 (Fairly Valued). The stock has 8 warning signs investors should review. Among 498 Utilities - Regulated companies, Rede Energia Participacoes ranks worse than 53.21% on this metric.
Rede Energia Participacoes SA operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Rede Energia Participacoes's Operating Margin % or its related term are showing as below:
BSP:REDE3'
s Operating Margin % Range Over the Past 10 Years
Min: 6.17 Med: 17.16 Max: 28.43
Current: 13.97
BSP:REDE3's Operating Margin % is ranked worse than 53.21% of 498
companies
in the Utilities - Regulated industry
Industry Median: 14.945
vs BSP:REDE3: 13.97
Rede Energia Participacoes SA has recorded a loss in operating income at least once over the past 3 years.
Rede Energia Participacoes (BSP:REDE3) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Rede Energia Participacoes Operating Margin % Related Terms
Rede Energia Participacoes Operating Margin % Historical Data
* 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.
Rede Energia Participacoes Operating Margin % Chart
BSP:REDE3 vs NEE, SO, DUK: Operating Margin % Comparison
For the Utilities - Regulated Electric subindustry, Rede Energia Participacoes's Operating Margin %, along with its competitors' market caps and Operating 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.
Rede Energia Participacoes Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Rede Energia Participacoes's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rede Energia Participacoes's Operating Margin % falls into.
Rede Energia Participacoes Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Rede Energia Participacoes's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Rede Energia Participacoes (BSP:REDE3) has a Operating Margin % of 19.62% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rede Energia Participacoes and its competitors. This is 14% above median its historical median of 17.16. Over the past decade, Rede Energia Participacoes' Operating Margin % has ranged from 6.17 to 28.43. According to the industry distribution chart, Rede Energia Participacoes ranks #265 out of 498 companies in the Utilities - Regulated industry, placing it in the top 53.2%.
Is Rede Energia Participacoes' Operating Margin % too high?
Rede Energia Participacoes' current Operating Margin % of 19.62% is 14% above median its 10-year median of 17.16. Over the past 10 years, this metric has ranged from a low of 6.17 to a high of 28.43. The Utilities - Regulated industry median Operating Margin % is 14.95. Rede Energia Participacoes' value of 19.62% is 31.3% above this industry median. Based on the distribution chart, Rede Energia Participacoes ranks #265 out of 498 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Rede Energia Participacoes has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rede Energia Participacoes' Operating Margin % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Rede Energia Participacoes ranks #265 out of 498 companies for Operating Margin %. This places Rede Energia Participacoes in the lower half of its industry. The industry median Operating Margin % is 14.95. Rede Energia Participacoes' value of 19.62% is 31.3% above this benchmark. Historically, Rede Energia Participacoes' own Operating Margin % has ranged from 6.17 to 28.43 over the past decade. While the company's 10-year median is 17.16 vs. the industry median of 14.95, Rede Energia Participacoes 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 Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.95, based on 498 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rede Energia Participacoes's current Operating Margin % of 19.62% is 31.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Rede Energia Participacoes and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rede Energia Participacoes's current Operating Margin % is 19.62%, which is 14% above median its own 10-year median of 17.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rede Energia Participacoes stock overvalued right now?
Based on GuruFocus' analysis, Rede Energia Participacoes (BSP:REDE3) is currently considered Fairly Valued. The stock's GF Value™ is R$5.99, compared to a current price of R$5.90 — trading 1.5% below its estimated fair value. The current Operating Margin % is 19.62%, which is 14% above median its 10-year median of 17.16 and 31.3% above the Utilities - Regulated industry median of 14.95. Rede Energia Participacoes' overall GF Score™ is 73/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Rede Energia Participacoes (BSP:REDE3), the current Operating Margin % is 19.62% 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 Rede Energia Participacoes (BSP:REDE3) Overvalued in 2026?
Based on GuruFocus' analysis, Rede Energia Participacoes stock appears to be undervalued.
The current stock price of R$5.90 is trading 1.5% below its estimated GF Value™ of R$5.99.
GuruFocus considers Rede Energia Participacoes to be Fairly Valued.
Key valuation signals for BSP:REDE3:
Operating Margin %: 19.62% (14% above median its 10-year median of 17.16)
GF Value™: R$5.99 vs. price of R$5.90 (1.5% below fair value)
Industry Position: 31.3% above the Utilities - Regulated median (#265 of 498)
No single metric tells the full story. See the BSP:REDE3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rede Energia Participacoes SA along with its subsidiaries generates, distributes and markets electrical energy as well as provides services related to electricity sector. It provides its services to residential, commercial, industrial, rural and public customers.
73GF Score
Get the complete analysis for BSP:REDE3
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