Connecticut Water Service (Connecticut Water Service) Gross Margin % : 58.25% (As of Jun. 2019)

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What is Connecticut Water Service Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Connecticut Water Service's Gross Profit for the three months ended in Jun. 2019 was $17.86 Mil. Connecticut Water Service's Revenue for the three months ended in Jun. 2019 was $30.66 Mil. Therefore, Connecticut Water Service's Gross Margin % for the quarter that ended in Jun. 2019 was 58.25%.

The historical rank and industry rank for Connecticut Water Service's Gross Margin % or its related term are showing as below:

CTWSP.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 55.42 Med: 55.98 Max: 56.26
Current: 56.24

During the past 13 years, the highest Gross Margin % of Connecticut Water Service was 56.26%. The lowest was 55.42%. And the median was 55.98%.

CTWSP.PFD's Gross Margin % is not ranked
in the Utilities - Regulated industry.
Industry Median: 29.51 vs CTWSP.PFD: 56.24

Connecticut Water Service had a gross margin of 58.25% for the quarter that ended in Jun. 2019 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Connecticut Water Service was 0.00% per year.

Connecticut Water Service Gross Margin % Historical Data

The historical data trend for Connecticut Water Service's Gross 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.

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Connecticut Water Service Gross Margin % Chart

Connecticut Water Service Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Gross Margin %

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56.26

55.98

55.42

Connecticut Water Service Quarterly Data
	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
Gross Margin %	Get a 7-Day Free Trial															57.46	65.77	45.98	50.77	58.25

Competitive Comparison of Connecticut Water Service's Gross Margin %

For the Utilities - Regulated Water subindustry, Connecticut Water Service's Gross Margin %, along with its competitors' market caps and Gross 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.

Connecticut Water Service's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Connecticut Water Service's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Connecticut Water Service's Gross Margin % falls into.

Connecticut Water Service Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Connecticut Water Service's Gross Margin for the fiscal year that ended in Dec. 2018 is calculated as

Gross Margin % (A: Dec. 2018 )	=	Gross Profit (A: Dec. 2018 )	/	Revenue (A: Dec. 2018 )
	=	64.7	/	116.665
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(116.665 - 52.006)	/	116.665
	=	55.42 %

Connecticut Water Service's Gross Margin for the quarter that ended in Jun. 2019 is calculated as

Gross Margin % (Q: Jun. 2019 )	=	Gross Profit (Q: Jun. 2019 )	/	Revenue (Q: Jun. 2019 )
	=	17.9	/	30.664
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(30.664 - 12.803)	/	30.664
	=	58.25 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Connecticut Water Service (OTCPK:CTWSP.PFD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Connecticut Water Service had a gross margin of 58.25% for the quarter that ended in Jun. 2019 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Connecticut Water Service Gross Margin % Related Terms

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Connecticut Water Service (Connecticut Water Service) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Connecticut Water Service Inc (OTCPK:CTWSP.PFD) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

93 West Main Street, Clinton, CT, USA, 06413

Website

http://www.ctwater.com

Connecticut Water Service Inc is a water utility that operates in the northeastern region of the United States, specifically Connecticut and Maine. The company has various subsidiaries and divisions, including water operations, which supplies public drinking water; real estate transactions, which sells real estate holdings; and service rentals, which sells contracted water and wastewater services. The major customers of the firm are residential, commercial, fire protection, public authority, and industrial entities. The majority of the company's revenue is derived from its water operations segment and residential customers.