Pennon GroupPEGRF +4.51%77 Operating Margin % is 28.12% as of Mar. 2026, which is 12% above its 10-year median of 25.10. 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 499 Utilities - Regulated companies, Pennon Group ranks better than 80.96% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Pennon Group's Operating Income for the
six
months ended in Mar. 2026 was $237 Mil. Pennon Group's Revenue for the
six
months ended in Mar. 2026 was $844 Mil. Therefore, Pennon Group's Operating Margin % for the quarter that ended in Mar. 2026 was 28.12%.
Warning Sign:
Pennon Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -8.5%.
The historical rank and industry rank for Pennon Group's Operating Margin % or its related term are showing as below:
PEGRF'
s Operating Margin % Range Over the Past 10 Years
Min: 13.97 Med: 25.1 Max: 39.54
Current: 26.77
PEGRF's Operating Margin % is ranked better than 80.96% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs PEGRF: 26.77
Pennon Group's 5-Year Average Operating Margin % Growth Rate was -8.50% per year.
Pennon Group (OTCPK:PEGRF) 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.
Pennon Group Operating Margin % Related Terms
Pennon Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Pennon Group's Operating 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.
PEGRF vs AWK, WTRG, AWR: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, Pennon 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.
Pennon Group Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pennon Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pennon Group's Operating Margin % falls into.
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.
Pennon Group's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Pennon Group (PEGRF) has a Operating Margin % of 28.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pennon Group and its competitors. This is 12% above median its historical median of 25.10. Over the past decade, Pennon Group's Operating Margin % has ranged from 13.97 to 39.54. According to the industry distribution chart, Pennon Group ranks #95 out of 499 companies in the Utilities - Regulated industry, placing it in the top 19%.
Is Pennon Group's Operating Margin % too high?
Pennon Group's current Operating Margin % of 28.12% is 12% above median its 10-year median of 25.10. Over the past 10 years, this metric has ranged from a low of 13.97 to a high of 39.54. The Utilities - Regulated industry median Operating Margin % is 14.97. Pennon Group's value of 28.12% is 87.8% above this industry median. Based on the distribution chart, Pennon Group ranks #95 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #95 out of 499 companies for Operating Margin %. This places Pennon Group in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. Pennon Group's value of 28.12% is 87.8% above this benchmark. Historically, Pennon Group's own Operating Margin % has ranged from 13.97 to 39.54 over the past decade. While the company's 10-year median is 25.10 vs. the industry median of 14.97, Pennon Group 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 14.97, 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. Pennon Group's current Operating Margin % of 28.12% is 87.8% 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 Pennon 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. Pennon Group's current Operating Margin % is 28.12%, which is 12% above median its own 10-year median of 25.10. 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 Operating Margin % is 28.12%, which is 12% above median its 10-year median of 25.10 and 87.8% above the Utilities - Regulated industry median of 14.97. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Pennon Group (PEGRF), the current Operating Margin % is 28.12% 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:
Operating Margin %: 28.12% (12% above median its 10-year median of 25.10)
GF Value™: $6.24 vs. price of $6.38 (2.2% above fair value)
Industry Position: 87.8% above the Utilities - Regulated median (#95 of 499)
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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