AWKNEUTRAL

AWK Gross Margin Analysis

64.5%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of delivering its service — for AWK, 59.2% means it retains nearly 59 cents of every dollar of revenue after covering those costs.

Sector Performance

77th percentile

AWK

64.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

59.2%(Jul 2026)

↑ Improving

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Deep Analysis

This is well above the sector median of 43.2%, placing AWK in the 73rd percentile among its utility peers, indicating a stronger cost advantage relative to most competitors. The year-over-year change is N/A, and the quarter-over-quarter change is also N/A, so there is no trend data available to evaluate whether this high margin is improving or eroding. Without a trend, the combination of a high gross margin level with an unknown direction limits clear conclusions — the level suggests a potential efficiency advantage, but the lack of movement means investors cannot assess momentum. This metric supports the overall NEUTRAL verdict, as the strong profit-per-sale is a positive factor, but the absence of trend data prevents it from being a decisive bullish signal.

Frequently Asked Questions

What does the Gross Margin tell investors about AWK?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are AWK's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.