California Water Service GroupCWT +3.22%80 Operating Margin % is 10.04% as of Mar. 2026, which is 45% below its 10-year median of 18.34. GuruFocus rates CWT with a GF Scoreâ„¢ of 80/100 and a GF Valueâ„¢ of $50.86 (Fairly Valued). The stock has 7 warning signs investors should review. Among 499 Utilities - Regulated companies, California Water Service Group ranks better than 56.91% on this metric.
California Water Service Group (NYSE:CWT) 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 NokiaÂ’s 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.
California Water Service Group Operating Margin % Related Terms
California Water Service Group 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.
California Water Service Group Operating Margin % Chart
CWT vs HTO, AWR, MSEX: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, California Water Service Group'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.
California Water Service Group Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, California Water Service Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where California Water Service Group's Operating Margin % falls into.
California Water Service Group 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.
* 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.
California Water Service Group (CWT) has a Operating Margin % of 10.04% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on California Water Service Group and its competitors. This is 45% below median its historical median of 18.34. Over the past decade, California Water Service Group's Operating Margin % has ranged from 8.01 to 25.32. According to the industry distribution chart, California Water Service Group ranks #215 out of 499 companies in the Utilities - Regulated industry, placing it in the top 43.1%.
Is California Water Service Group's Operating Margin % too high?
California Water Service Group's current Operating Margin % of 10.04% is 45% below median its 10-year median of 18.34. Over the past 10 years, this metric has ranged from a low of 8.01 to a high of 25.32. The Utilities - Regulated industry median Operating Margin % is 14.97. California Water Service Group's value of 10.04% is 32.9% below this industry median. Based on the distribution chart, California Water Service Group ranks #215 out of 499 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, California Water Service Group has a GF Scoreâ„¢ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does California Water Service Group's Operating Margin % compare to HTO and AWR?
According to the Utilities - Regulated industry distribution chart, California Water Service Group ranks #215 out of 499 companies for Operating Margin %. This puts California Water Service Group in the upper half of its industry. The industry median Operating Margin % is 14.97. California Water Service Group's value of 10.04% is 32.9% below this benchmark. Historically, California Water Service Group's own Operating Margin % has ranged from 8.01 to 25.32 over the past decade. While the company's 10-year median is 18.34 vs. the industry median of 14.97, California Water Service 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 Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. California Water Service Group's current Operating Margin % of 10.04% is 32.9% 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 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 California Water Service Group and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. California Water Service Group's current Operating Margin % is 10.04%, which is 45% below median its own 10-year median of 18.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is California Water Service Group stock overvalued right now?
Based on GuruFocus' analysis, California Water Service Group (CWT) is currently considered Fairly Valued. The stock's GF Value™ is $50.86, compared to a current price of $49.08 — trading 3.5% below its estimated fair value. The current Operating Margin % is 10.04%, which is 45% below median its 10-year median of 18.34 and 32.9% below the Utilities - Regulated industry median of 14.97. California Water Service Group's overall GF Score™ is 80/100 with 7 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 California Water Service Group (CWT), the current Operating Margin % is 10.04% 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 California Water Service Group (CWT) Overvalued in 2026?
Based on GuruFocus' analysis, California Water Service Group stock appears to be undervalued.
The current stock price of $49.08 is trading 3.5% below its estimated GF Value™ of $50.86.
GuruFocus considers California Water Service Group to be Fairly Valued.
Key valuation signals for CWT:
Operating Margin %: 10.04% (45% below median its 10-year median of 18.34)
GF Value™: $50.86 vs. price of $49.08 (3.5% below fair value)
Industry Position: 32.9% below the Utilities - Regulated median (#215 of 499)
No single metric tells the full story. See the CWT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
California Water Service Group Business Description
California Water Service Group is a U.S. water and utilities holding company based in California. The company provides water utility and other related services in California, Washington, New Mexico, Hawaii and Texas through its wholly-owned subsidiaries. The bulk of the company's business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, and the provision of water for domestic and municipal fire protection services.
80GF Score
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