PEGNEUTRAL

Gross Margin

36.5%

Higher than 18% of Utilities sector peers

Updated 393h ago

Sector Performance

18th percentile

PEG

36.5%

Sector Median

43.3%

Sector Avg

46.7%

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Deep Analysis

Public Service Enterprise Group's gross margin of 36.5% means that after subtracting the direct costs of producing electricity and gas, the company keeps $0.365 of every dollar of revenue.

That figure sits well below the utility sector median of 43.2%, placing PEG in the 18th percentile among its peers. While the year-over-year change is not available, the quarter-over-quarter change shows a drop of 51.7% from 75.6% in the prior quarter—a steep decline based on the only two data points provided. The combination of a low margin level and a sharp recent decline signals elevated near-term risk, as the company may be facing higher input costs or pricing pressure. This metric contradicts a neutral assessment by highlighting a notable weakness in profitability compared to the sector. Overall, the gross margin data suggests more caution than the neutral verdict implies.

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 36.5% compares to a Utilities sector median of 43.3%, placing it in the 18th 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%), PCG (39.8%), PNW (37.9%).

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.