ALKNEUTRAL

Gross Margin

100.0%

Higher than 97% of Industrials sector peers

Updated 824h ago

Sector Performance

97th percentile

ALK

100.0%

Sector Median

28.9%

Sector Avg

660.5%

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Deep Analysis

Alaska Air Group's current Gross Margin of 100.0% means every dollar of revenue is retained after accounting for the direct costs of providing its flights—an exceptional figure, reflecting minimal cost of goods sold relative to revenue.

Among Industrials sector peers, this stands far above the median of 28.9%, placing the company in the 97th percentile. No trend data is available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and there are no historical values beyond the single reported 100.0% figure. The combination of an extremely high level with no trend information limits the ability to assess whether this margin is sustainable or a one-time anomaly, creating uncertainty rather than a clear risk or opportunity. This metric alone does not contradict the overall NEUTRAL verdict, as the lack of trend makes it difficult to draw a directional conclusion on the stock's prospects.

Frequently Asked Questions

What does the Gross Margin tell investors about ALK?

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 ALK's Gross Margin compare to its sector?

ALK's Gross Margin of 100.0% compares to a Industrials sector median of 28.9%, placing it in the 97th percentile.

Who are ALK's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: AVY (28.9%), POOL (29.0%), BLDR (28.3%), BE (30.0%), RSG (30.5%).

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.