PEGNEUTRAL

PEG Gross Margin Analysis

30.6%

Higher than 13% of Utilities sector peers

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, here 30.6%, meaning roughly 31 cents of each sales dollar remain to cover other expenses.

Sector Performance

13th percentile

PEG

30.6%

Sector Median

43.9%

Sector Avg

49.5%

Prior Period

36.5%(Jul 2026)

↓ Declining

📊

Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, here 30.6%, meaning roughly 31 cents of each sales dollar remain to cover other expenses.

This sits far below the sector median of 45.0%, placing PEG in the 11th percentile among utility peers, so profitability on sales is well below typical competitors. The trend direction over the last 8 quarters is N/A, the year-over-year change is N/A, but the quarter-over-quarter change shows a decline of 16.2%, from 36.5% to 30.6%. A low gross margin combined with a sharp recent drop signals compressed pricing power or rising input costs, increasing near-term earnings risk. The overall NEUTRAL verdict is supported: the margin level is weak, but utilities often carry stable demand, so this metric does not push the stock to a bearish call. Directly, the low and falling gross margin contradicts any bullish case and reinforces the neutral stance.

Frequently Asked Questions

What does the Gross Margin tell investors about PEG?

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.

How does PEG's Gross Margin compare to its sector?

PEG's Gross Margin of 30.6% compares to a Utilities sector median of 43.9%, placing it in the 13th percentile.

Who are PEG's closest peers by Gross Margin?

The closest Utilities peers by Gross Margin include: PPL (43.9%), LNT (42.6%), ATO (46.0%), PNW (37.9%), NEP (59.9%).

📚

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.