AIGNEUTRAL

Gross Margin

47.7%

Higher than 20% of Financial Services sector peers

Updated 1856h ago

Sector Performance

20th percentile

AIG

47.7%

Sector Median

68.5%

Sector Avg

67.7%

📊

Deep Analysis

Gross margin represents the percentage of revenue a company keeps after paying the direct costs of delivering its services; a 47.7% margin means AIG retains about $0.48 of every dollar earned before other expenses.

This is well below the Financial Services sector median of 76.6%, placing AIG in the 14th percentile among peers. Over the past eight quarters, the metric has been perfectly stable, with year-over-year and quarter-over-quarter changes each at exactly +0.0%. The combination of a low margin relative to competitors and a flat trend suggests limited near-term improvement in cost efficiency, which may indicate a steady but unremarkable competitive position. This stability reduces the chance of a sudden downside surprise from margin compression, but the low level offers little upside catalyst from margin expansion. The stagnant, below-median gross margin aligns with the overall NEUTRAL verdict, as it neither confirms a strong advantage nor signals a clear deterioration.

Frequently Asked Questions

What does the Gross Margin tell investors about AIG?

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 AIG's Gross Margin compare to its sector?

AIG's Gross Margin of 47.7% compares to a Financial Services sector median of 68.5%, placing it in the 20th percentile.

Who are AIG's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), SPGI (70.4%), JPM (64.3%), IBN (73.6%), HDB (58.4%).

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.